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Andhra Pradesh
BUDGET 18-19

ABOUT BUDGET 2018-2019

GENERAL INTRODUCTION TO THE BUDGET OR THE ANNUAL FINANCIAL STATEMENT

For successful financial management, Government needs advance planning and accurate estimation. Under Art.202 of the Constitution of India a statement of the estimated receipts and expenditure of the State for each financial year has to be laid before the Legislature. This statement is known as the “Annual Financial Statement” or popularly known as ‘Budget’. The French word “Budget” means pouch that was used in those days to carry the financial statement.

The annual financial statement is shown in three parts.

  1. Consolidated Fund of the State
  2. Contingency Fund of the State and
  3. Public Account of the State

For successful financial management, Government needs advance planning and accurate estimation. Under Art.202 of the Constitution of India a statement of the estimated receipts and expenditure of the State for each financial year has to be laid before the Legislature. This statement is known as the “Annual Financial Statement” or popularly known as ‘Budget’. The French word “Budget” means pouch that was used in those days to carry the financial statement.

The Consolidated fund of the State is formed out of all revenues received by the Government of the State, all loans raised by that Government by the issue of treasury bills, loans / Ways and Means Advances and all moneys received by the Government in repayment of loans.

The transactions relating to the Consolidated Fund are accounted for in three different sections, viz.,

  1. Revenue Account
  2. Capital Account
  3. Loan Account

The Revenue Account is the account of the current income and expenditure of the State. The income is derived mainly from taxes and duties, fees for services rendered, fines and penalties, revenue from Government estates such as forests and other miscellaneous items. The Capital Account is the account of expenditure of a capital nature such as construction of buildings, laying of roads, irrigation and electricity projects. Such expenditure is met from sources other than current revenues, e.g. loans, surplus revenue of previous years, if any, and capital receipts.The loan account is the account of public debt incurred and discharged and of loans and advances made by the State Government to local bodies, employees and others and recovered from them.