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  1. Asked: February 11, 2021In: Public Sector Accounting in India

    How many types of budget are there in India

    PSAmaster
    Added an answer on March 18, 2022 at 10:44 am

    There are three different types of budge in India. Indian government budgets are thought to fall into three groups: surplus, balanced, and deficit. According to estimations, India's government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union BudgeRead more

    There are three different types of budge in India.

    Indian government budgets are thought to fall into three groups: surplus, balanced, and deficit.

    According to estimations, India’s government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link.

    If the anticipated government receipts equal the anticipated government expenditure in a fiscal year, this is referred to as the government’s balanced budget. A balanced budget will not contribute to financial stability if the economy is experiencing deflation or economic depression.

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  2. Asked: December 1, 2020In: Public Sector Accounting in India

    Who is the guardian of public funds in India

    PSAmaster
    Added an answer on March 17, 2022 at 9:53 pm
    This answer was edited.

    In India, the Comptroller and Auditor General of India and the Public Accounts Committee are the guardians of public funds. The Indian Constitution's Articles 266 and 267 deal with the government of India's funds. The Comptroller and Auditor General of India and the Public Accounts Committee are resRead more

    In India, the Comptroller and Auditor General of India and the Public Accounts Committee are the guardians of public funds.

    The Indian Constitution’s Articles 266 and 267 deal with the government of India’s funds.

    The Comptroller and Auditor General of India and the Public Accounts Committee are responsible for safeguarding public funds in India.

    Articles 266 and 267 of the Indian Constitution deal with the government of India’s funds.

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  3. Asked: February 11, 2021In: Public Sector Accounting in India

    How many types of budget are there in India

    PSAmaster
    Added an answer on March 17, 2022 at 9:52 pm

    According to estimates, India's government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link. If the anticipated government receipts equal the anticipated government expenditure in a fiscal yRead more

    According to estimates, India’s government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link.

    If the anticipated government receipts equal the anticipated government expenditure in a fiscal year, this is referred to as the government’s balanced budget.

    A balanced budget will not contribute to financial stability if the economy is experiencing deflation or economic depression.

    Types of budget In India

    According to the government, there are three types of budgets:

    1. Balanced budget.
    2. Surplus budget.
    3. Deficit budget.

    1. Balanced budget

    When a government’s estimated revenues and anticipated expenditures are equal, the budget is said to be balanced. Specifically, government receipts and expenditures.

    That’s because the government raises money through taxes and other ways. In the past, a balanced budget was thought to be a good way to keep the government from spending too much money.

    The government has to be fiscally responsible and keep its spending within the limits of what it can afford.

    Classical economists such as Adam Smith popularized the concept of a balanced budget.

    They regarded a balanced budget as being neutral in terms of its effect on the functioning of the economy and thus the best.

    However, contemporary economists believe that a balanced budget policy may not always be optimal for the economy.

    For example, during a depression, there is less economic activity, which leads to jobless people being out of work

    The government may intervene to save the populace. It has the authority to borrow funds and spend them on public works projects.

    This will lead to more jobs, more demand for goods and services, and more investment.

    2. Surplus budget

    When estimated government receipts exceed estimated government expenditures, a surplus budget exists.

    When the government spends less than it receives, the budget is said to be in surplus.

    Government expenditure projections exceed anticipated government expenditures.

    A surplus budget is used to either reduce the public debt or increase the government’s savings.

    A surplus budget may be advantageous during times of inflation. While there is more work during times of inflation, there is also a tendency for prices to rise quickly.

    This must be checked, particularly for those with a more or less fixed income. This inflationary imbalance can be closed by lowering the economy’s effective demand level.

    It is a situation that can be corrected by increasing taxes. This would increase the government’s revenue but erode the people’s purchasing power.

    As a result, aggregate demand will be reduced. This inflation discrepancy can be closed by reducing government spending.

    The surplus budget should not be used for purposes other than to close the inflationary gap, as it may result in increased unemployment and low economic output.

    3. Deficit budget

    when the government’s revenue is expected to be less than its expenditure. The majority of budgets in modern economies are of this type. That the anticipated government expenditure exceeds the estimated government receipts.

    A deficit budget increases the government’s liability or depletes its reserves.

    A deficit budget may be advantageous during times of depression when economic activity is at a low level. It results in job losses, business closures, and even bankruptcy, as well as inflation.

    Through deficit financing, the government can borrow money and increase expenditure on public works.

    This will result in an increase in employment and total effective demand for goods and services, which will stimulate investment. As a result, a deficit budget is helpful in eradicating depression and unemployment.

    Any country in the world strives to avoid a deficit budget, despite the fact that achieving a surplus budget is difficult, which is why countries strive for a balanced budget in order to avoid inflation, unemployment, or other negative consequences.

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  4. Asked: December 1, 2020In: Public Sector Accounting in India

    Who is the guardian of public funds in India

    PSAmaster
    Added an answer on March 17, 2022 at 9:52 pm

    The CAG of India, also known as the "Guardian of the Public Purse," is tasked with inspecting and auditing all expenditures by the Central and State governments, as well as those organizations or bodies that receive significant funding from the government. CAG Responsibilities There are a lot of accRead more

    The CAG of India, also known as the “Guardian of the Public Purse,” is tasked with inspecting and auditing all expenditures by the Central and State governments, as well as those organizations or bodies that receive significant funding from the government.

    CAG Responsibilities

    There are a lot of accounts he looks at. He looks at all spending from the Consolidated Fund of India, the Consolidated Funds of each state and UT with a legislature, and the funds of the Union Territories.

    He audits all expenditure from India’s contingency fund and public account, as well as from each state’s contingency fund and public account.

    He audits all commercial, manufacturing, profit and loss, balance sheets, and separate subsidiary accounts maintained by any department of the central or state governments.

    He audits all receipts and expenditures of bodies and authorities that receive substantial funding from central or state revenues, government corporations, other corporations, and bodies as required by applicable laws.

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  5. Asked: December 1, 2020In: Public Sector Accounting in India

    Is the consolidated fund of India kept in State Bank of India

    PSAmaster
    Added an answer on March 17, 2022 at 9:51 pm

    The RBI is the government's banker who is solely in charge of All three fund types, namely: Consolidated Fund the public account and the Contingency fund. Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India. Reserve Bank of IndRead more

    The RBI is the government’s banker who is solely in charge of All three fund types, namely:

    1. Consolidated Fund
    2. the public account and
    3. the Contingency fund.

    Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India.

    Reserve Bank of India in Nagpur is where all of the funds for the state and government are put together at the end.

    The Indian government and each state government in India each have their own consolidated funds.

    Article 266 (1) of the Indian Constitution requires that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), excluding exceptional items, be included in the consolidated fund.

    The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.

    The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.

    Charged expenses aren’t voted on by Parliament, which means they can be talked about but not voted on. The other type of expenses must be voted on.

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  6. Asked: June 25, 2021In: Public Sector Accounting

    Who holds Consolidated Fund of India?

    PSAmaster
    Added an answer on March 12, 2022 at 12:09 am

    The Indian government and each state government in India each have their own consolidated funds. For instance, Article 266 (1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, beRead more

    The Indian government and each state government in India each have their own consolidated funds.

    For instance, Article 266 (1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in the consolidated fund.

    The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.

    The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.

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  7. Asked: June 25, 2021In: Public Sector Accounting

    What is consolidated fund of state in India?

    PSAmaster
    Added an answer on March 12, 2022 at 12:03 am

    The term "State Consolidated Fund in India" refers to the fund defined in Article 266 (1) of the Constitution as "all revenues received by the Government of Rajasthan, all revenues raised by that government through the issuance of Treasury Bills, loans, or ways and means advances, and all money receRead more

    The term “State Consolidated Fund in India” refers to the fund defined in Article 266 (1) of the Constitution as “all revenues received by the Government of Rajasthan, all revenues raised by that government through the issuance of Treasury Bills, loans, or ways and means advances, and all money received by that government in repayment of loans.”

    The term “State Consolidated Fund in India” refers to the fund into which all revenue is received by the state government and all loans are raised by the state government through the issuance of common shares and debentures.

    Examples of Consolidated Fund of the State in a sentence

    Consolidated Fund of the State sentence examples The fund is repaid by debiting expenditures against the relevant functional major head of the state’s Consolidated Fund.

    Guarantees are obligations backed by the state’s consolidated fund in the event of a borrower’s default.

    The fund is repaid by debiting expenditures against the relevant functional major head in the state’s Consolidated Fund.

    Audits of all transactions involving the state’s consolidated fund,

    (ii) all transactions involving the contingency fund and public accounts, and (iii) all trade, manufacturing, profit and loss, balance sheets, and other subsidiary accounts.

    The fund is recouped by debiting expenditures against the relevant functional major head linked to the state’s Consolidated Fund.

    Guarantees are obligations imposed on the state’s consolidated fund in the event of default by the borrowers to whom the guarantees have been provided.

    If adopted and implemented, the bill would incur no extra expenditures from the State’s Consolidated Fund.

    (i) all receipts and expenditures of a body/authority that is substantially financed by grants or loans from the State’s Consolidated Fund, and

    (ii) all receipts and expenditures of anyone or authority that receives grants or loans from the State’s Consolidated Fund in a fiscal year that exceeds one crore.

    The State Authority’s administrative expenses, including salaries, allowances, and pensions payable to the Member-Secretary, officers, and other workers, shall be paid from the State’s Consolidated Fund.

    Every ordinance shall have the Chancellor’s prior approval; provided, however, that in the case of an ordinance including a proposal involving expenditure from the State’s Consolidated Fund, the Chancellor shall discuss with the State Government prior to granting his approval.

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  8. Asked: June 25, 2021In: Public Sector Accounting in India

    How much is the Consolidated Fund of India?

    PSAmaster
    Added an answer on March 11, 2022 at 11:42 pm

    It has a market capitalization of Rs. 500 crores. It is inherent in the nature of an impasse (money maintained for a specific purpose). The Finance Ministry's Secretary manages this money on behalf of the President of India. India's Consolidated Fund This is the most vital part of the government's aRead more

    It has a market capitalization of Rs. 500 crores. It is inherent in the nature of an impasse (money maintained for a specific purpose).

    The Finance Ministry’s Secretary manages this money on behalf of the President of India.

    India’s Consolidated Fund

    This is the most vital part of the government’s accounting.

    This fund is replenished in the following ways:

    Taxes, both direct and indirect,

    Return of loans/interest on loans to the government by any individual or agency that has taken them

    This fund is used to cover the government’s entire spending.

    To withdraw funds from this fund, the government must obtain parliamentary approval.

    Article 266 (1) of the Indian Constitution makes provision for this fund.

    Each state may establish its own consolidated fund with comparable features.

    The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.

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