In the Indian Constitution, nowhere the founding fathers have mentioned the word " Budget". The word which they have used for budget is "Annual Financial Statement". The Art-112 of Constitution provides for all the provisions to enact a Annual Financial Statement.
The Annual Financial Statement is the estimated receipts and expenditure of the Government of India in a financial year, which begins on 1st April and ends on 31 st March of the following year. The Budget has the following elements included., Estimates of Revenue and Capital receiptsways and Means to raise revenue.Details of Estimates of expenditure.Details of the actual receipts and expenditure of the closing financial year and the reason for any deficit or surplus in that year, andEconomic and Financial policy of the coming year, that is taxation proposals, prospects of revenue, spending program and introduction of new schemes/ Projects.Separation of Railways Budget:
The central Government of India main…
The standard rate at which the RBI is prepared to buy or rediscount bills of exchange or other commercial papers eligible for purchase under the provisions of the Act of RBI. Thus the RBI, rediscounts the first class bills in the hands of commercial banks to provide them with liquidity in case of need. This rate is subjected to change from time to time in accordance with the economic stability and its credibility of the nation. The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate (this is currently 6 per cent), the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.