Key to Budget

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Key to Budget shows the statement of estimated receipts and expenditure of the Indian government as laid before the parliament in every financial year, starting from the first day of April to the last day of March. The Key to Budget guides through three sections of the government accounts, namely, the Consolidated Fund, Contingency Fund, and Public Fund.
Consolidated fund:
From the Key to Budget it is implied that the Consolidated Fund is formed from all revenues received by government along with the loans raised by it and the receipts from recoveries of loans granted by it. The expenditures of the government is obtained from this fund and without the prior permission of the parliament no amount can be withdrawn.

Contingency Fund:
As per the Key to Budget, the Contingency Fund is required to meet urgent unexpected expenditure by the government. At present nearly ` 500 crore lies with the Fund.

Public Fund:
The Key to Budget refers to other transactions of the government in which the government acts as a banker, the money thus received are kept in the Public Fund.
The Key to Budget exhibits two essential divisions of government budget, namely, Revenue budget, and Capital budget.
Revenue budget:
Revenue budget is the revenue receipts of government and the expenditure met from these revenues. The Key to Budget shows the estimate of revenue receipts in the Annual Financial Statement along with other receipts of government consisting of interest and dividend on governmental investments, fees, and other receipts for services furnished by government.

Capital budget:
From the Key to Budget it is known that the capital budget comprise of capital receipts and payments, like the market loans, borrowings by government from Reserve Bank and other parties through sale of Treasury Bills, and capital expenditure on acquisition of assets like land, machinery, share investments, and others. Capital budget also incorporates transactions in the public account.