Components of Budget Recovery of Loans Borrowing and other Liabilities Disinvestment Non - Tax Receipts Tax Receipts Plan Expenditure Plan Expenditure Non Plan Expenditure Non Plan Expenditure justification or otherwise for the project as a whole in the light of the socio-economic objectives which have been already set up for this project and as well as in view of the priorities of the society. vi) Performance Budget: When the outcome of any activity is taken as the base of any budget, such budget is known as ‘Performance Budget’. For the first time in the world, the performance budget was made in USA. The Administrative Reforms Commission was set up in in America under Sir Hooper.
This commission recommended making of a ‘Performance Budget’ in USA. In the Performance Budget, it is the compulsion of the government to tell ‘what is done’, ‘how much done’ for the betterment of the people. In India, the Performance Budget is also known as ‘Outcome Budget’. - - Fiscal Economics vii) Balanced Budget Vs Unbalanced Budget A.
Balanced Budget Balanced budget is a situation, in which estimated revenue of the government during the year is equal to its anticipated expenditure. Government’s estimated Revenue = Government’s proposed Expenditure. B. Unbalanced Budget The budget in which Revenue & Expenditure are not equal to each other is known as Unbalanced Budget.
Unbalanced budget is of two types: . Surplus Budget . Deficit Budget . Surplus Budget The budget is a surplus budget when the estimated revenues of the year are greater than anticipated expenditures.
Government Estimated revenue > Estimated Government Expenditure.