CURRENT AFFAIRS

Detailed explanation-1: -Notes: According to the recent survey conducted the international NGO Transparency International, Indian state Assam has been ranked as the top state in terms of best practices followed during budget formulation.

Detailed explanation-2: -The budget has four stages viz., (1) estimates of expenditures and revenues, (2) first estimate of deficit, (3) narrowing of deficit and (4) presentation and approval of budget.

Detailed explanation-3: -The Indian Union Budget is prepared by the Ministry of Finance in consultation with Niti Aayog and other concerned ministries. Also, the Budget division of the Department of Economic Affairs (DEA) in the Finance Ministry is the nodal body responsible for producing the Budget.

Detailed explanation-4: -It is presented by means of the Finance bill and the Appropriation bill has to be passed by Lok Sabha before it can come into effect on 1 April, the start of India’s financial year. An interim budget is not the same as a ‘Vote on Account’.

Detailed explanation-5: -The Union Budget aids in controlling the economic fluctuations as well. It ensures proper handling of inflation and deflation, thus bringing about economic stability. During inflation, surplus budget policies are implemented, while deficit budget policies are devised during deflation.