The list of Budget documents presented to the Parliament, besides the Finance Minister's Budget
Speech, are the following:
A.
Annual Financial Statement (AFS)
B.
Demands for Grants (DG)
C.
Appropriation Bill
D.
Finance Bill
E.
Memorandum Explaining the Provisions in the Finance Bill
F.
Macro-Economic Framework Statement
G.
Fiscal Policy Strategy Statement
H.
Medium Term Fiscal Policy Statement
I.
Medium Term Expenditure Framework Statement- (to be presented in parliament in the
Session after the Budget session).
J.Expenditure Profile
1
K.Expenditure Budget
2
L.Receipts Budget
M.Budget at a Glance
N.Highlights of Budget- Key Features.
O. Outcome Budget
The documents shown at Serial A, B, C and D are mandated by Art. 112,113, 114(3) and 110(a) of the
Constitution of India respectively, while the documents at Serial F, G, H and I are presented as per the provisions
of the Fiscal Responsibility and Budget Management Act, 2003.
2.
In addition to the above, the Department of Expenditure in the Ministry of Finance in collaboration with
NITI Aayog from the financial year 2017-18, is preparing the consolidated Outcome Budget for all Ministries
and Departments. Further individual Departments/Ministries also prepare and present to the Parliament their
Detailed Demands for Grants and their Annual Reports. The Economic Survey which highlights the economic
trends in the country and facilitates a better appreciation of the mobilization of resources and their allocation in
the Budget is brought out by the Economic Division of the Department of Economic Affairs, Ministry of Finance.
The Economic Survey is presented to the Parliament ahead of the Union Budget. The web versions of these
documents are normally posted by the respective Ministries/Departments on their web sites.
A brief description of the Budget documents listed in para 1 is given below.
3. (A) Annual Financial Statement (AFS)
The Annual Financial Statement (AFS), the document as provided under Article 112, shows the estimate
dreceipts and expenditure of the Government of India for 2017-18 in relation to estimates for 2016-17
as alsoactual expenditure for the year 2015-16. The receipts and disbursements are shown under three parts
inwhich Government Accounts are kept viz.,(i) The Consolidated Fund of India, (ii) The Contingency Fun
d ofIndia and (iii) The Public Account of India. The Annual Financial Statement distinguishes the expend
iture onrevenue account from the expenditure on other accounts, as is mandated in the Constitution of India.
TheRevenue and the Capital sections together, therefore make the Union Budget. The estimates of receipt
s andexpenditure included in the Annual Financial Statement are for expenditure net of refunds and recove
ries. TheUnion Government Finance Accounts also reflect expenditure in a similar manner.
The significance of the Consolidated Fund, the Contingency Fund and the Public Account as well as th
e
distinguishing features of the Revenue and the Capital portions are given below briefly:
(i)
The Consolidated Fund of India (CFI) draws its existence from Article 266 of the Constitution. All
revenues received by the Government, loans raised by it, and also receipts from recoveries of loans
granted by it, together form the Consolidated Fund of India. All expenditure of the Government is
incurred from the Consolidated Fund of India and no amount can be drawn from the Consolidated
Fund without due authorization from the Parliament.
(ii)
Article 267 of the Constitution authorises the existence of a Contingency Fund of India which is an
imprest placed at the disposal of the President of India to facilitate meeting of urgent unforeseen
expenditure by the Government pending authorization from the Parliament. Parliamentary approval
for such unforeseen expenditure is obtained, ex- post-facto, and an equivalent amount is drawn from
the Consolidated Fund to recoup the Contingency Fund after such ex-post-facto approval. The corpus
of the Contingency Fund as authorized by Parliament presently stands at
`
500 crore.
(iii)
Moneys held by Government in trust are kept in the Public Account. Provident Funds, Small Savings
collections, income of Government set apart for expenditure on specific objects such as road
development, primary education, other Reserve/Special Funds etc., are examples of moneys kept in
the Public Account. Public Account funds that do not belong to the Government and have to be finally
paid back to the persons and authorities who deposited them, do not require Parliamentary authorisat
ionfor withdrawals. The approval of the parliament is obtained when amounts are withdrawn from the
Consolidated Fund and kept in the Public Account for expenditure on specific objects. The actual
expenditure on the specific object is again submitted for vote of the Parliament for withdrawal from
thePublic Account for incurring expenditure on the specific objects.
The Union Budget can be demarcated into the part pertaining to revenue which is for ease of
reference termed as Revenue Budget in (iv) below and the part pertaining to Capital which is for eas
eof reference termed as Capital Budget in (v) below.
(iv)
The Revenue Budget consists of the revenue receipts of the Government (tax revenues and other
Non Tax revenues) and the expenditure met from these revenues. Tax revenues comprise proceeds
of taxes and other duties levied by the Union. The estimates of revenue receipts shown in the Annual
Financial Statement take into account the effect of various taxation proposals made in the Finance
Bill. Other non-tax receipts of the Government mainly consist of interest and dividend on investment
smade by the Government, fees and other receipts for services rendered by the Government. Revenue
expenditure is for the normal running of Government departments and for rendering of various service
s,making interest payments on debt, meeting subsidies, grants in aid, etc.
Broadly, the expenditure which does not result in creation of assets for the Government of
India, is treated as revenue expenditure. All grants given to the State Governments/Union Territorie
sand other parties are also treated as revenue expenditure even though some of the grants may be
used for creation of capital assets. Revenue expenditure which results in the creation of capital as
setsis reduced from revenue deficit to arrive at the Effective Revenue Deficit (ERD).
11
Effective Revenue Defici
t(ERD) = Revenue Deficit - Grants for Creation of Capital Assets
(v)Capital receipts and capital payments together constitute the Capital Budget. The capital receipts a
relons raised by the Government from the public (these are termed as market loans), borrowings by
the Government from the Reserve Bank of India and other parties through the sale of Treasury Bills,
the loans received from foreign Governments and bodies, disinvestment receipts and recoveries of
loans from State and Union Territory Governments and other parties. Capital payments consist of
capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also
investments in shares, etc., and loans and advances granted by the Central Government to the State
and the Union Territory Governments, Government companies, Corporations and other parties.
(vi)
Accounting Classification
The estimates of receipts and disbursements in the Annual Financial Statement and of expenditure
in the Demands for Grants are shown according to the accounting classification referred to under
Article 150 of the Constitution.
The Annual Financial Statement shows, certain disbursements distinctly, which are charged on
the Consolidated Fund of India. The Constitution of India mandates that such items of expenditure
such as emoluments of the President, salaries and allowances of the Chairman and the Deputy
Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha, salaries,
allowances and pensions of the Judges of the Supreme Court, the Comptroller and Auditor-General
of India and the Central Vigilance Commission, interest on and repayment of loans raised by the
Government and payments made to satisfy decrees of courts etc., may be charged on the
Consolidated Fund of India and are not required to be voted by the Lok Sabha.
3. (B) Demands for Grants
(i)
Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated
Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha,
be submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok
Sabha along with the Annual Financial Statement. Generally, one Demand for Grant is presented in
respect of each Ministry or Department. However, more than one Demand may be presented for a
Ministry or Department depending on the nature of expenditure. With regard to Union Territories
without Legislature, a separate Demand is presented for each of such Union Territories. In budget
2017-18 there are 100 Demands for Grants. Each Demand initially gives separately the totals of
(i)'voted' and 'charged' expenditure; (ii) the 'revenue' and the 'capital' expenditure and (iii) the
grand
total on gross basis of the amount of expenditure for which the Demand is presented. This is followe
d
by the estimates of expenditure under different major heads of account. The amounts of recoveries
are also shown. The net amount of expenditure after reducing the recoveries from the gross amount
is also shown. A summary of Demands for Grants is given at the beginning of this document, while
details of 'New Service' or 'New Instrument of Service' such as, formation of a new company, underta
kingor a new scheme, etc., if any, are indicated at the end of the document.
(ii)
Each Demand normally includes the total provisions required for a service, that is, provisions on
account of revenue expenditure, capital expenditure, grants to State and Union Territory Governments
and also loans and advances relating to the service. Where the provision for a service is entirely f
orexpenditure charged on the Consolidated Fund of India, for example, interest payments (Demand for
Grant No. 37), a separate Appropriation, as distinct from a Demand, is presented for that expenditur
eand it is not required to be voted by the Lok Sabha. Where, however, expenditure on a service includ
esboth 'voted' and 'charged' items of expenditure, the latter are also included in the Demand presente
dfor that service but the 'voted' and 'charged' provisions are shown separately in that Demand.
3. (C) Appropriation Bill
Under Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund with
outthe enactment of such a law by Parliament. After the Demands for Grants are voted by the Lok Sabha,
theParliament's approval for the withdrawal from the Consolidated Fund of the amounts so voted and of t
heamount required to meet the expenditure charged on the Consolidated Fund is sought through the Appro
priationBill. The Appropriation Bill is placed in parliament separately after the presentation of Bu
dget, to be taken upfor passing after discussion / voting on the Demands for Grants.
12
The whole process, beginning with the presentation of the Budget and ending with discussions and vot
ingon the Demands for Grants, requires a sufficiently long time. The Lok Sabha is, therefore, empowered
by theConstitution to make any grant in advance in respect of the estimated expenditure for a part of the
financialyear pending completion of the procedure of the voting on the Demands. This is termed as 'Vote on Account'.The purpose of the 'Vote on Account' is to keep the Government functioning, pending voting of 'finalsupply'.The Vote on Account is obtained from Parliament through an Appropriation (Vote on Account) Bill. In thefinancial year 2017-18, a vote on Account would not be required as the Budget presentation is advanc
ed to thefirst of February, 2017.
3. (D) Finance Bill
At the time of presentation of the Annual Financial Statement before the Parliament, a Finance Bill
is alsopresented in fulfillment of the requirement of Article 110 (1)(a) of the Constitution, detailing the
imposition,abolition, remission, alteration or regulation of taxes proposed in the Budget. It also contains oth
er provisionsrelating to Budget that could be classified as Money Bill. A Finance Bill is a Money Bill as definedin Article 110of the Constitution. It is accompanied by a Memorandum explaining the provisions included in it.
3. (E) Memorandum Explaining the Provisions in the Finance Bill
To facilitate understanding of the taxation proposals contained in the Finance Bill, the provisions
and theirimplications are explained in the document titled Memorandum Explaining the Provisions in the Finance Bill.
3. (F) Macro-Economic Framework Statement
The Macro-economic Framework Statement is presented to Parliament under Section 3(5) of the Fiscal
Responsibility and Budget Management Act, 2003 and the rules made thereunder. It contains an assessm
ent of the growth prospects of the economy along with the statement of specific underlying assumptions.
It alsocontains an assessment regarding the GDP growth rate, the domestic economy and the stability of the
externalsector of the economy, fiscal balance of the Central Government and the external sector balance of t
heeconomy.
3. (G) Fiscal Policy Strategy Statement
The Fiscal Policy Strategy Statement is presented to Parliament under Section 3(4) of the Fiscal
Responsibility and Budget Management Act, 2003. It outlines for the existing financial year, the str
ategicpriorities of the Government relating to taxation, expenditure, lending and investments, administere
d pricing, borrowings and guarantees. The Statement explains how the current fiscal policies are in conformity
with sound fiscal management principles and gives the rationale for any major deviation in key fiscal mea
sures.
3. (H) Medium-Term Fiscal Policy Statement
The Medium-Term Fiscal Policy Statement is presented to Parliament under Section 3(2) of the Fiscal
Responsibility and Budget Management Act, 2003. It sets out the three-year rolling targets for five
specificfiscal indicators in relation to GDP at market prices, namely (i) Revenue Deficit, (ii) Fiscal Defic
it, (iii) Effective
Revenue Deficit (iv) Tax to GDP ratio and (v) Total outstanding Central Government Liabilities at th
e end of theyear. The Statement includes the underlying assumptions, an assessment of the balance between revenuereceipts and revenue expenditure and the use of capital receipts including market borrowings for the
creation of productive assets.
3. (I) Medium-Term Expenditure Framework Statement
The Medium-Term Expenditure Framework Statement is presented to the Parliament under Section 3 of
the Fiscal Responsibility and Budget Management Act, 2003. It sets forth the three-year rolling targ
et forcertain expenditure indicators along with delineation of the underlying assumptions and risks. The o
bjective of the MTEF is to provide a closer integration between the budget and the FRBM Statements. This Statement ispresented separately in the session next to the session in which Budget is presented, i.e. normally
in theMonsoon Session.
3.2
To facilitate a more comprehensive understanding of the major features of the Budget, certain other
explanatory documents are presented
Speech, are the following:
A.
Annual Financial Statement (AFS)
B.
Demands for Grants (DG)
C.
Appropriation Bill
D.
Finance Bill
E.
Memorandum Explaining the Provisions in the Finance Bill
F.
Macro-Economic Framework Statement
G.
Fiscal Policy Strategy Statement
H.
Medium Term Fiscal Policy Statement
I.
Medium Term Expenditure Framework Statement- (to be presented in parliament in the
Session after the Budget session).
J.Expenditure Profile
1
K.Expenditure Budget
2
L.Receipts Budget
M.Budget at a Glance
N.Highlights of Budget- Key Features.
O. Outcome Budget
The documents shown at Serial A, B, C and D are mandated by Art. 112,113, 114(3) and 110(a) of the
Constitution of India respectively, while the documents at Serial F, G, H and I are presented as per the provisions
of the Fiscal Responsibility and Budget Management Act, 2003.
2.
In addition to the above, the Department of Expenditure in the Ministry of Finance in collaboration with
NITI Aayog from the financial year 2017-18, is preparing the consolidated Outcome Budget for all Ministries
and Departments. Further individual Departments/Ministries also prepare and present to the Parliament their
Detailed Demands for Grants and their Annual Reports. The Economic Survey which highlights the economic
trends in the country and facilitates a better appreciation of the mobilization of resources and their allocation in
the Budget is brought out by the Economic Division of the Department of Economic Affairs, Ministry of Finance.
The Economic Survey is presented to the Parliament ahead of the Union Budget. The web versions of these
documents are normally posted by the respective Ministries/Departments on their web sites.
A brief description of the Budget documents listed in para 1 is given below.
3. (A) Annual Financial Statement (AFS)
The Annual Financial Statement (AFS), the document as provided under Article 112, shows the estimate
dreceipts and expenditure of the Government of India for 2017-18 in relation to estimates for 2016-17
as alsoactual expenditure for the year 2015-16. The receipts and disbursements are shown under three parts
inwhich Government Accounts are kept viz.,(i) The Consolidated Fund of India, (ii) The Contingency Fun
d ofIndia and (iii) The Public Account of India. The Annual Financial Statement distinguishes the expend
iture onrevenue account from the expenditure on other accounts, as is mandated in the Constitution of India.
TheRevenue and the Capital sections together, therefore make the Union Budget. The estimates of receipt
s andexpenditure included in the Annual Financial Statement are for expenditure net of refunds and recove
ries. TheUnion Government Finance Accounts also reflect expenditure in a similar manner.
The significance of the Consolidated Fund, the Contingency Fund and the Public Account as well as th
e
distinguishing features of the Revenue and the Capital portions are given below briefly:
(i)
The Consolidated Fund of India (CFI) draws its existence from Article 266 of the Constitution. All
revenues received by the Government, loans raised by it, and also receipts from recoveries of loans
granted by it, together form the Consolidated Fund of India. All expenditure of the Government is
incurred from the Consolidated Fund of India and no amount can be drawn from the Consolidated
Fund without due authorization from the Parliament.
(ii)
Article 267 of the Constitution authorises the existence of a Contingency Fund of India which is an
imprest placed at the disposal of the President of India to facilitate meeting of urgent unforeseen
expenditure by the Government pending authorization from the Parliament. Parliamentary approval
for such unforeseen expenditure is obtained, ex- post-facto, and an equivalent amount is drawn from
the Consolidated Fund to recoup the Contingency Fund after such ex-post-facto approval. The corpus
of the Contingency Fund as authorized by Parliament presently stands at
`
500 crore.
(iii)
Moneys held by Government in trust are kept in the Public Account. Provident Funds, Small Savings
collections, income of Government set apart for expenditure on specific objects such as road
development, primary education, other Reserve/Special Funds etc., are examples of moneys kept in
the Public Account. Public Account funds that do not belong to the Government and have to be finally
paid back to the persons and authorities who deposited them, do not require Parliamentary authorisat
ionfor withdrawals. The approval of the parliament is obtained when amounts are withdrawn from the
Consolidated Fund and kept in the Public Account for expenditure on specific objects. The actual
expenditure on the specific object is again submitted for vote of the Parliament for withdrawal from
thePublic Account for incurring expenditure on the specific objects.
The Union Budget can be demarcated into the part pertaining to revenue which is for ease of
reference termed as Revenue Budget in (iv) below and the part pertaining to Capital which is for eas
eof reference termed as Capital Budget in (v) below.
(iv)
The Revenue Budget consists of the revenue receipts of the Government (tax revenues and other
Non Tax revenues) and the expenditure met from these revenues. Tax revenues comprise proceeds
of taxes and other duties levied by the Union. The estimates of revenue receipts shown in the Annual
Financial Statement take into account the effect of various taxation proposals made in the Finance
Bill. Other non-tax receipts of the Government mainly consist of interest and dividend on investment
smade by the Government, fees and other receipts for services rendered by the Government. Revenue
expenditure is for the normal running of Government departments and for rendering of various service
s,making interest payments on debt, meeting subsidies, grants in aid, etc.
Broadly, the expenditure which does not result in creation of assets for the Government of
India, is treated as revenue expenditure. All grants given to the State Governments/Union Territorie
sand other parties are also treated as revenue expenditure even though some of the grants may be
used for creation of capital assets. Revenue expenditure which results in the creation of capital as
setsis reduced from revenue deficit to arrive at the Effective Revenue Deficit (ERD).
11
Effective Revenue Defici
t(ERD) = Revenue Deficit - Grants for Creation of Capital Assets
(v)Capital receipts and capital payments together constitute the Capital Budget. The capital receipts a
relons raised by the Government from the public (these are termed as market loans), borrowings by
the Government from the Reserve Bank of India and other parties through the sale of Treasury Bills,
the loans received from foreign Governments and bodies, disinvestment receipts and recoveries of
loans from State and Union Territory Governments and other parties. Capital payments consist of
capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also
investments in shares, etc., and loans and advances granted by the Central Government to the State
and the Union Territory Governments, Government companies, Corporations and other parties.
(vi)
Accounting Classification
The estimates of receipts and disbursements in the Annual Financial Statement and of expenditure
in the Demands for Grants are shown according to the accounting classification referred to under
Article 150 of the Constitution.
The Annual Financial Statement shows, certain disbursements distinctly, which are charged on
the Consolidated Fund of India. The Constitution of India mandates that such items of expenditure
such as emoluments of the President, salaries and allowances of the Chairman and the Deputy
Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha, salaries,
allowances and pensions of the Judges of the Supreme Court, the Comptroller and Auditor-General
of India and the Central Vigilance Commission, interest on and repayment of loans raised by the
Government and payments made to satisfy decrees of courts etc., may be charged on the
Consolidated Fund of India and are not required to be voted by the Lok Sabha.
3. (B) Demands for Grants
(i)
Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated
Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha,
be submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok
Sabha along with the Annual Financial Statement. Generally, one Demand for Grant is presented in
respect of each Ministry or Department. However, more than one Demand may be presented for a
Ministry or Department depending on the nature of expenditure. With regard to Union Territories
without Legislature, a separate Demand is presented for each of such Union Territories. In budget
2017-18 there are 100 Demands for Grants. Each Demand initially gives separately the totals of
(i)'voted' and 'charged' expenditure; (ii) the 'revenue' and the 'capital' expenditure and (iii) the
grand
total on gross basis of the amount of expenditure for which the Demand is presented. This is followe
d
by the estimates of expenditure under different major heads of account. The amounts of recoveries
are also shown. The net amount of expenditure after reducing the recoveries from the gross amount
is also shown. A summary of Demands for Grants is given at the beginning of this document, while
details of 'New Service' or 'New Instrument of Service' such as, formation of a new company, underta
kingor a new scheme, etc., if any, are indicated at the end of the document.
(ii)
Each Demand normally includes the total provisions required for a service, that is, provisions on
account of revenue expenditure, capital expenditure, grants to State and Union Territory Governments
and also loans and advances relating to the service. Where the provision for a service is entirely f
orexpenditure charged on the Consolidated Fund of India, for example, interest payments (Demand for
Grant No. 37), a separate Appropriation, as distinct from a Demand, is presented for that expenditur
eand it is not required to be voted by the Lok Sabha. Where, however, expenditure on a service includ
esboth 'voted' and 'charged' items of expenditure, the latter are also included in the Demand presente
dfor that service but the 'voted' and 'charged' provisions are shown separately in that Demand.
3. (C) Appropriation Bill
Under Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund with
outthe enactment of such a law by Parliament. After the Demands for Grants are voted by the Lok Sabha,
theParliament's approval for the withdrawal from the Consolidated Fund of the amounts so voted and of t
heamount required to meet the expenditure charged on the Consolidated Fund is sought through the Appro
priationBill. The Appropriation Bill is placed in parliament separately after the presentation of Bu
dget, to be taken upfor passing after discussion / voting on the Demands for Grants.
12
The whole process, beginning with the presentation of the Budget and ending with discussions and vot
ingon the Demands for Grants, requires a sufficiently long time. The Lok Sabha is, therefore, empowered
by theConstitution to make any grant in advance in respect of the estimated expenditure for a part of the
financialyear pending completion of the procedure of the voting on the Demands. This is termed as 'Vote on Account'.The purpose of the 'Vote on Account' is to keep the Government functioning, pending voting of 'finalsupply'.The Vote on Account is obtained from Parliament through an Appropriation (Vote on Account) Bill. In thefinancial year 2017-18, a vote on Account would not be required as the Budget presentation is advanc
ed to thefirst of February, 2017.
3. (D) Finance Bill
At the time of presentation of the Annual Financial Statement before the Parliament, a Finance Bill
is alsopresented in fulfillment of the requirement of Article 110 (1)(a) of the Constitution, detailing the
imposition,abolition, remission, alteration or regulation of taxes proposed in the Budget. It also contains oth
er provisionsrelating to Budget that could be classified as Money Bill. A Finance Bill is a Money Bill as definedin Article 110of the Constitution. It is accompanied by a Memorandum explaining the provisions included in it.
3. (E) Memorandum Explaining the Provisions in the Finance Bill
To facilitate understanding of the taxation proposals contained in the Finance Bill, the provisions
and theirimplications are explained in the document titled Memorandum Explaining the Provisions in the Finance Bill.
3. (F) Macro-Economic Framework Statement
The Macro-economic Framework Statement is presented to Parliament under Section 3(5) of the Fiscal
Responsibility and Budget Management Act, 2003 and the rules made thereunder. It contains an assessm
ent of the growth prospects of the economy along with the statement of specific underlying assumptions.
It alsocontains an assessment regarding the GDP growth rate, the domestic economy and the stability of the
externalsector of the economy, fiscal balance of the Central Government and the external sector balance of t
heeconomy.
3. (G) Fiscal Policy Strategy Statement
The Fiscal Policy Strategy Statement is presented to Parliament under Section 3(4) of the Fiscal
Responsibility and Budget Management Act, 2003. It outlines for the existing financial year, the str
ategicpriorities of the Government relating to taxation, expenditure, lending and investments, administere
d pricing, borrowings and guarantees. The Statement explains how the current fiscal policies are in conformity
with sound fiscal management principles and gives the rationale for any major deviation in key fiscal mea
sures.
3. (H) Medium-Term Fiscal Policy Statement
The Medium-Term Fiscal Policy Statement is presented to Parliament under Section 3(2) of the Fiscal
Responsibility and Budget Management Act, 2003. It sets out the three-year rolling targets for five
specificfiscal indicators in relation to GDP at market prices, namely (i) Revenue Deficit, (ii) Fiscal Defic
it, (iii) Effective
Revenue Deficit (iv) Tax to GDP ratio and (v) Total outstanding Central Government Liabilities at th
e end of theyear. The Statement includes the underlying assumptions, an assessment of the balance between revenuereceipts and revenue expenditure and the use of capital receipts including market borrowings for the
creation of productive assets.
3. (I) Medium-Term Expenditure Framework Statement
The Medium-Term Expenditure Framework Statement is presented to the Parliament under Section 3 of
the Fiscal Responsibility and Budget Management Act, 2003. It sets forth the three-year rolling targ
et forcertain expenditure indicators along with delineation of the underlying assumptions and risks. The o
bjective of the MTEF is to provide a closer integration between the budget and the FRBM Statements. This Statement ispresented separately in the session next to the session in which Budget is presented, i.e. normally
in theMonsoon Session.
3.2
To facilitate a more comprehensive understanding of the major features of the Budget, certain other
explanatory documents are presented
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