Union Finance Minister Nirmala Sitharaman on Saturday presented her second Union Budget that focussed towards boosting India’s economic growth and maintaining the fiscal disciple. Sitharaman, 60, broke her own record of a 2-hour-17- minute-long maiden Budget speech in July 2019. This was the longest Budget speech by any finance minister.
Budget at a Glance presents broad aggregates of the Budget in a reader-friendly document. This document shows receipts and expenditure as well as the Fiscal Deficit (FD), Revenue Deficit (RD), Effective Revenue Deficit (ERD), and the Primary Deficit (PD) of the government. Besides, it presents a pictorial account of sources of receipts, their application, the details of debt and deficit indicators, sources of deficit financing and trends and composition of important budgetary variables through charts and graphs.
Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure. FD is reflective of the total borrowing requirements of Government. Revenue Deficit refers to the excess of revenue expenditure over revenue receipts. Effective Revenue Deficit is the difference between Revenue Deficit and Grants for Creation of Capital Assets. Primary Deficit is measured as Fiscal Deficit less interest payments.
Budget 2020-21 reflects the Government’s firm commitment to substantially boost investment in Agriculture, Social Sector, Education and Health. This is substantiated by an increase in expenditure of ` 3,43,678 crores over RE (2019-20) while keeping the fiscal deficit at 3.8% of GDP. In RE 2019-20, the total expenditure has been kept at ` 26,98,552 crore and is more than Provisional Actual (2018-19) by `3,83,439 crore.
The total resources going to States including the devolution of State’s share in taxes, Grants/Loans, and releases under Centrally Sponsored Schemes in BE (2020-21) is `13,90,666 crore, with an increase of `2,02,705 crore over RE (2019-20).
Actuals for 2018-19 are provisional.