A booklet on

Citizens Budget
 Contents

Why Citizens Budget? 3

Taxes, Funds & Budget 4

Revenue & Grants 8

Budget for Citizens 9

Photogallery 12
B
ports better accountability in the use of
public funds; and helps in the prioritiza-
udget is a statement of alloca- tion of public functions to which scarce
tion of resources to achieve government’s resources require immediate allocations.
objectives for a specific time period. It is For common citizens, Budget is not only
a financial plan for how the Government a formal government document, it is also
will receive and utilize resources (funds) a statement that touches their lives and
in a particular fiscal year. A Budget sup- ensures well-being. Therefore, citizen

3
participation in Budget customs duty etc.
making, without diluting GST: Goods and Services
the importance of de- Tax is an indirect tax
tailed budget documents, levied on the sale of goods
fosters greater accounta- and services (except a few
bility on how public products like petroleum
money is managed. Apart and alcohol, etc. which
from having a sense of are taxed separately by
ownership and participa- the state governments).

M
tion, Citizens Budget en- Revenue: Funds that are
sures greater information raised through various
dissemination. means — Tax (GST, Ex-
cise Duty, Assam’s share
of Central Taxes, etc.) and Non-Tax (roy-
alty on mining natural resources and
ajor Budget Terminologies: land revenue, etc.).
Direct Taxes: Direct taxes are the one Expenditure: Funds used for spending
that fall directly on individuals and cor- on day to day expenditure and specific
porations. For example, income tax, cor- programmes including capital projects.
porate tax etc. Consolidated Fund: All revenues re-
Indirect Taxes: Indirect taxes are im- ceived by the Government including tax
posed on goods and services. They are and non-tax revenues, loans raised and
paid by consumers when they buy goods repayment of loans made (including the
and services. These include excise duty, interest thereon) form the Consolidated

4
Fund. All expenditure and disburse- and Miscellaneous transaction (adjust-
ments of the Government, including re- ing entries pending booking to final
lease of loans and repayments of loans heads of account), Remittances between
taken (and the interest thereon), are met accounting entities, and Cash Balance.
from this fund. Balance Budget: Budget is a
Contingency Fund: A reserve balanced one when the esti-
fund set aside for possible unfore- mated revenue/receipt and ex-
seen expenditure and estab- pected expenditure are equal.
lished under Article 267(2) Surplus Budget: When
of the Constitution. It is the estimated
an imprest placed at the revenue/receipt is
disposal of the Gover- more than the ex-
nor. pected expenditure it
Public Account: All is surplus budget.
public moneys re- Deficit Budget:
ceived, other than those When estimate rev-
credited to the Consoli- enue/receipt is less than
dated Fund, are accounted for the expected expenditure it is
under the Public Account. In respect of deficit budget.
such receipts, Government acts as a Fiscal Deficit: When the government’s
banker or trustee. The Public Account non-borrowed receipts fall short of its
comprises of repayables like Small Sav- entire expenditure, it has to borrow
ings and Provident Funds, Reserve money from the public to meet the short-
Fund, Deposits and Advances, Suspense fall. The excess of total expenditure over

5
 Inflation is
the sustained in-
crease in the
general price level
of goods and
services.
total non-borrowed receipts is called the general price level of goods and services.
fiscal deficit. The inflation rate is the percentage rate
Revenue Deficit: The difference between of change in the price level.
revenue expenditure and revenue receipt Vote on Account: The Vote on Account
is known as revenue deficit. It shows the is a grant made in advance by the As-
shortfall of government’s current re- sembly, in respect of the estimated ex-
ceipts over current expenditure. penditure for a part of new Financial
Primary Deficit: The primary deficit is Year, pending the completion of proce-
the fiscal deficit minus interest pay- dure relating to the voting on the De-
ments. It tells how much of the Govern- mand for Grants and the passing of the
ment’s borrowings are going towards Appropriation Act. It is usually pre-
meeting expenses other than interest sented when the government of the day
payments. does not have sufficient time to present
Inflation: A sustained increase in the a full budget. It is also done when na-

6
tional elections arrive near and propriety refer to the allotment of a specific sum of
demands that the task of preparing and money for meeting the expenditures on
framing the full budget be left to the in- a particular job as enunciated in the De-
coming department. tailed Demands for Grants and it allow
Budget Estimates: Amount of money the Government to re-appropriate provi-
allocated in the Budget to any ministry sions from one sub-head to another
or scheme for the coming financial year. within the same Grant. Re-appropriation
Revised Estimates: Re- provisions may be sanc-
vised Estimates are mid- tioned by a competent
year review of possible authority at any time be-
expenditure, taking into fore the closure of the fi-
account the rest of ex- nancial year to which
penditure, New Services such grant or appropria-
and New instrument of tion relates. The Comp-
Services etc. Revised Es- troller & Auditor General
timates are not voted by and the Public Accounts
the legislature, and Committee reviews these
hence by itself do not provide any au- re-appropriations and comments on
thority for expenditure. Any additional them for taking corrective actions.
projections made in the Revised Esti- Outcome Budget: From the fiscal year
mates need to be authorized for expen- 2006-07, every Ministry presents a pre-
diture through the legislature’s approval liminary Outcome Budget to the Ministry
or by Re-appropriation order. of Finance, which is responsible for com-
Re-appropriations: Re-appropriations piling them. The Outcome Budget is a

7
progress card on what various Ministries ment from the Union Government. In-
and Departments have done with the cludes ‘External Grant Assistance’ and
outlays in the previous annual ‘Aid Material and Equipment’
budget. It measures the received from foreign gov-
developmental out- ernments and chan-
comes of all Govern- nelized through the
ment programmes Union Government.
and whether the In turn, the State
money has been Governments also

T
spent for the purpose it give Grants-in-aid to
was sanctioned including institutions like 6th
the outcome of the fund usage. Schedule Councils, Panchayati
Raj Institutions, Autonomous Bodies etc.
Capital Receipts: These are loans
raised by the Government from the pub-
ypes of Receipts lic (these are termed as market loans),
Tax Revenue: Comprises taxes collected borrowings by the Government from the
and retained by the State and State’s Reserve Bank of India and other parties
share of Union taxes under Article 280(3) through the sale of Treasury Bills,
of the Constitution. the loans received from foreign Govern-
Non-Tax Revenue: Includes interest on ments and bodies, disinvestment re-
receipts, dividends, profits etc. ceipts and recoveries of loans from State
Grants-in-Aid: Essentially, a form of and Union Territory Governments and
Central Assistance to the State Govern- other parties.

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D
limited successes in implementing a full-
fledged Citizens Budget.
ecoding Citizens Budget: Cit- Initiatives by Government of Assam:
izen or Participatory Budget is a process With a new government taking charge,
where common citizens get a chance to Assam made its first attempt to make a
deliberate and decide what the Budget citizen-centric Budget during the Budget
should incorporate and its look and feel. 2017-18, which involved inviting online
It has been prevalent in many parts of suggestions from the citizens.
the world, including Europe, Africa and With a promising beginning last
Asia since last many years. year, the state has taken a huge leap in

INPUTS CITIZENS INPUTS

FROM FROM
BUDGET
CITIZENS GOVT.

In India, it is a relatively new for- reaching out to citizens across Assam for
mat; where till recently, budget making Budget 2018-19. For the first time Fi-
has never gone past the sacred bound- nance Department officials launched an
aries of Legislature and Executive (bu- intensive publicity campaign across the
reaucracy included). Though many state, involving newspaper advertise-
states have been trying to incorporate ments, social media campaigns, press
the views of citizens, there have been releases and campus seminars.

9
 It engaged with citizens in more Reaching out to the masses: The
ways than one. Apart from the first phase of awareness campaign
usual MyGov platform, was done in the form of newspa-
there was Sugges- per advertisements in five dif-
tion Forms routed ferent languages and
through the Fi- simultaneous social media
nance Department campaigns. The second
and other departmen- phase of awareness
tal websites of Govern- campaign was
ment of Assam. Here every launched with another
internet user, irrespective of round of newspaper adver-
caste, creed, sex or demo- tisements, press release and a mas-
graphic diversity could submit sive campus drive across 17
suggestions and ideas regard- districts, involving 40 edu-
ing Assam Budget 2018- cational institutes, cov-
19. Out of the total 235 ering universities,
inputs received colleges and
across key sectors schools thereby
like girl child, di- reaching out to more
vyang, elderly, etc., than five thousand stu-
good suggestions were dents and teachers.
given due weightage for in- The six-day campaign began
corporation into Assam Budget on January 29th, 2018 at Kamrup
2018-19. Metro, Kamrup, Golaghat and Dhe-

10
maji districts simultaneously. During the last date of submission.
the course of the following days, the The winning logo illustrates a
campaign covered 13 other districts — money bag with Rupee symbol with a
Jorhat, Majuli, Dibrugarh, Sonitpur, gear (symbol of progress, skill, technol-
Biswanath, Lakhim- ogy and architecture
pur, Barpeta, Bon- of system) and head
gaigaon, Kokrajhar, of one horned rhino
Nagaon, Karbi Ang- (symbol of Assam,
long, NC Hills, and representing
Cachar. strength and unity
A new logo: Simulta- in diversity) repre-
neously, a logo design sents the various
competition for Assam aspects of Assam
Budget was also con- Budget. The graph
ducted inviting citi- blended with the
zens to draw and rhino represents
design a logo for sustainable growth.
Assam Budget using The two colours that
the MyGov platform. A have been used
Committee (compris- prominently are —
ing design experts orange (associated
from IIT Guwahati) selected one designed with enthusiasm, happiness and suc-
by Shri Kalpataru Bor Deori as the best cess) and green (associated with growth,
logo among the 39 entries received till freshness and environment).

11
A visual rundown of the Assam Budget 2018-19
awareness campaign across 17 districts

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Printed at Assam Government Press, Bamunimaidam, Guwahati-781021