Question
Write a note on budget of a state government in India

Answer

  • Introduction :
  • India's administration is of three levels.
  • So state government has to perform their responsibilities mentioned in constitution.
  • Like central, state government also presents budget, in which expected income and expected expenditures are mentioned.
  • State budget is presented by —state finance ministers. It is essential to get the consent from the representative of the public in the —vidhan sabha for the expected amount to be spent and income for the next financial year.
  • State budget is discussed in the vidhan sabha, in it changes are done and final budget is approved with majority.
  • Like central, state government also implements its approved budget from $1"$ April to $31"$ March The main difference between union budget and state budget is that union budget has division of expenditure in planned and unplanned expenditure while state government budget is divided into development oriented expense and Non development oriented expenses.
  • In general, the expenditure which gives speed to economic development in a direct way are termed as development oriented expenditure. E.g. Expense on agriculture or irrigation facilities while non-development oriented expenditure affects the long term development in indirect way. E.g. Expenditure on pension.
  • Most of the states of India has the complaint that the responsibilities delegated to them are more as compared to the financial income provided.
  • So they have to depend on central government for aid. State government has two parts :
$(1)$ Revenue account
$(2)$ Capital account.
  • Following are details of state government budget :
  • State Budget $($Important Details of State Budget$)$ :
Income $($Credit$)$ Expenditure $($Debit$)$
$(1)$ According to reference of finance commission, the share of tax income from the center. Developmental : $(1)$ Social service like Education, Health Nutrition. Information technology, Welfare of Backward, Class, Water supply and soon.
$(2)$ Mainly the following tax revenue is collected by the State $(A)$. Land Revenue, $(B)$. Stamp Duty $(C)$. Tax on Agricultural income $(D)$. State excise duties $(E)$ Sales tax – value $(F)$ Vehicles tax $(G)$Tax on Electricity $(H)$ Entertainment Tax $(I)$ Land and House Tax $(J)$ Other Taxes $(2)$ Economic Services like Agriculture, Rural Development, Irrigation Industries, Science, Technology communication and so on.
$(3)$ Other Income like Grant-in Aid, Donation, Gifts. Non Developmental : $(3)$ General service like Administrative services, Pension and retirement benefits, Financial services. Types of Expense.
  $(4)$ Other expenses includes grant given to local self government institution.
Capital Account
Income $(Credit)$ Expenditure $(Debit)$
$(1)$ Public Debt $A.$ State Government Internal Debt. $B.$ Loans and advance from the central government $C.$ Advances receives from Center for projects. $(1)$ Developmental : $A.$ Expense done behind capital investment for Social Service. $B.$ Capital Expense done behind Economic Services
$(2)$ Recovery of Loans and Advances of others. $(2)$ Non Development : $A. $Capital Expenditure on General Services and Administration. $B.$ Repayment of Public Debt. $C. $ Other expenditure, load and advance given to local self government institution.
$(3)$ Other Capital income E.g. Capital Income Earned from Disinvestment.  

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