[Model Answer QP2021 GS3]Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets.


According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS). It is a statement of the estimated receipts and expenditure of the Government in a financial year.

Capital Budget: includes the Capital Receipts and Capital Expenditure.

Revenue Budget: includes the Revenue Receipts and Capital Expenditure.

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