Introduction The Union Budget is one of the most important annual events in India’s governance and economic management. Often described as the annual financial statement of the central government, the Union Budget reflects the priorities, strategies, and fiscal health of the nation. It is not just a financial document but also a political and economic…
Introduction Public expenditure refers to the spending incurred by the government to meet the developmental, administrative, and welfare needs of the nation. In any economy, the government plays multiple roles – as a provider of essential services, a regulator of markets, a promoter of social justice, and a facilitator of economic growth. To fulfill these…
Introduction Taxation is the backbone of government finance, providing the resources needed to fund public goods, welfare programs, infrastructure, and national defense. However, taxation is not merely about raising revenue; it is also a powerful instrument for influencing economic and social behavior. Governments often design their tax systems in such a way that certain groups,…
Introduction Revenue generation is the backbone of government functioning, enabling it to finance developmental activities, welfare schemes, defense, infrastructure, and administrative operations. The Indian Constitution provides a clear framework for revenue collection, ensuring financial autonomy for both the Union (Central) Government and State Governments. Revenue in India is broadly classified into tax revenue and non-tax…
Introduction Revenue generation is a critical function of any government. To finance its expenditures—such as infrastructure development, social welfare schemes, defense, and administrative operations—the government relies on two broad sources of income: tax revenue and non-tax revenue. While tax revenue is collected through compulsory levies on individuals and businesses, non-tax revenue refers to income earned…
The Finance Commission of India plays a crucial role in ensuring equitable distribution of financial resources between the central government and the states. Established under Article 280 of the Indian Constitution, the Finance Commission’s primary responsibility is to recommend the distribution of the net proceeds of taxes between the Union and the States, as well…