09-25-2020     3 رجب 1440

“You Need a Budget”

September 16, 2020 | Mohammad Hussain Khan

No Government can function without finance. Rather it is its very basis. Like an individual, it has to get money to spend. However, individuals may, at their own risk spend without planning, foresight and proper recording of their transactions. And Government is accountable for its actions to the legislature. Therefore in order to monitor earnings and control spending government periodically draws up budgets.
Modern economics are complex and hence require constant vigilance by fiscal authorities to control various types of economic imbalance like unemployment, trade cycles and inflation. Thus budget is not merely an exercise in matching expenditure with income but a powerful medium for articulating the objectives of economic policy. Budget is a declaration of the Government’s fiscal policies and their corresponding financial plans. It is the nucleus round which the financial activities of the country/state oscillate. It is both the scale and limit of all financial operations. Budgets are not merely matters of arithmetic but in a thousand ways go to the root of prosperity of individual and strength of nation. So you need a budget. Budgetary operations have an important bearing on the functions of economy. The ideals of welfare State and planned development have tremendously increased the magnitude of Public spending. The Government collects huge sums of money through taxation, public borrowing, scale of goods and services and the issue of treasury bills to the Reserve Bank of India. The manner of collection and utilization of these funds affect the allocation of resources to various sectors, the distribution of funds among various classes and the levels of savings and investment in the economy. This in turn influences the consumptions pattern of people.
The budgetary process involves preparation of budget, execution of budget and auditing. Preparation of budget requires a lot efforts on the part of Ministry of Finance and the various departments of the Government. In the month of September or October every year Ministry sends a circular to all the departmental officers requesting them to prepare the estimates of expenditure of their respective departments for the following financial year. The departments work their estimates on the basis of their previous year spending and the new schemes and projects which they intend to take up. These estimates are forwarded to the Ministry which after having scrutinized the estimates, prunes the excessive demands. Before the expenditure estimates are finalized, lot of wrangling may take place between the Ministry and the departments. However, the Ministry has final say in regard to all estimates. Estimates of plan outlay are scrutinized by the planning commission. Estimates of Government revenues are prepared by the Department of Revenue of Ministry of Finance. The department remains equipped with records of yields of various taxes and on their basis estimates of revenue for the ensuing year are worked out.
A Government budget may be a balanced, surplus or a deficit one. It is balanced when the tax revenue and expenditure proposed are equal. In the long run, every planner likes to have a balanced budget. It helps to activise economy and create conditions of boom and development.
Despite budget being prepared so wisely and scrutinized so effectively, it is said that in February more people have sleepless nights than at any other time of the year. Reasons being quite simple that normally in February Government comes out with the one document that affects the life of entire population. The industrialists fear of higher duties, the elite feel dread of higher income tax, the middle class is haunted by the specter of inflation and the poor brace themselves for dooms day. But truly opening, a budget needs not be treated as such as bad mess. It is made by the wise people in a wiser way to make it of the people and for the people. Budget has wide ramification. It plays a vital role in the economy of the State. Every citizen is interested in it. From the budget citizens can know which benefits they are going to derive and how much tax they will have to pay. The taxation policy of the Government in the budget may lead to narrowing down of class distinction and inequalities. The production policy in the budget may help in removing poverty, eradicating unemployment and avoiding misdistribution of wealth. It can cheek inflation and enables the citizens to lead their life with comfort and happiness. This clearly depicts that budget has tremendous social and economic implications in modern states.
Budget is much more than a mere balance sheet. Common people think that Budgets come and budgets go. Every year a lot is discussed and debated about the year’s budget and how for it is friendly for the masses. People think that schemes are made for the poor but on the ground level impact is that prices keep on rising to dizzy heights. The common man does not understand the technalities of the budget making but he only feels the Jolt when he has to pay more for everything he consumes. People think that due to preparation of budget prices rise and perturbing one and all. What to speak of the luxuries of life, even the prices of essential goods are touching such a new heights as one is rightly feeling disturbed and depressed. The rich feel concerned because the buying of the luxuries of life is consuming much of their income. The middle class people are worried because the attempt to maintain their standard costs their pockets much. The poor ones are crying because they do not even have sufficient to make their both ends meet. The problem of rising prices is linked by people with preparation of Budget. Since the price line is a life line and to hold life we will have to hold the price as it effects those very goods that provide subsistence and standard to life. Thus budget must provide services to below poverty line class, lower middle class and upper middle class so that they may not treat it just a topic for discussion for a month or two. The common man should be given to understand that budget is for him to map out his goals and make his dreams a reality. To indemnify common man and to control social disturbances, certainly the problem of soaring prices has to be tackled so that poor people could take handful of money in the market an come back home with basket full of goods. Knowing the feelings of common masses it reminds me this Urdu couplet.

“Aaj phir ne bujh jayai jal jal kai umidon kai charag,
Aaj phir ne dam today taron bhari raat”.

It is difficult to continue to believe; but believe in that Budget is for you. Favourable monsoon shall definitely come floating in and after every down pour your droughted gardens shall smile, flower and flourish. Hope is powerful thing. Let you hold fast to dreams as hope line is dreams. Be hopeful and do not underestimate the importance of Budget as budget is for you.


Email:----Khanhussain.ang@gmail.com

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“You Need a Budget”

September 16, 2020 | Mohammad Hussain Khan

No Government can function without finance. Rather it is its very basis. Like an individual, it has to get money to spend. However, individuals may, at their own risk spend without planning, foresight and proper recording of their transactions. And Government is accountable for its actions to the legislature. Therefore in order to monitor earnings and control spending government periodically draws up budgets.
Modern economics are complex and hence require constant vigilance by fiscal authorities to control various types of economic imbalance like unemployment, trade cycles and inflation. Thus budget is not merely an exercise in matching expenditure with income but a powerful medium for articulating the objectives of economic policy. Budget is a declaration of the Government’s fiscal policies and their corresponding financial plans. It is the nucleus round which the financial activities of the country/state oscillate. It is both the scale and limit of all financial operations. Budgets are not merely matters of arithmetic but in a thousand ways go to the root of prosperity of individual and strength of nation. So you need a budget. Budgetary operations have an important bearing on the functions of economy. The ideals of welfare State and planned development have tremendously increased the magnitude of Public spending. The Government collects huge sums of money through taxation, public borrowing, scale of goods and services and the issue of treasury bills to the Reserve Bank of India. The manner of collection and utilization of these funds affect the allocation of resources to various sectors, the distribution of funds among various classes and the levels of savings and investment in the economy. This in turn influences the consumptions pattern of people.
The budgetary process involves preparation of budget, execution of budget and auditing. Preparation of budget requires a lot efforts on the part of Ministry of Finance and the various departments of the Government. In the month of September or October every year Ministry sends a circular to all the departmental officers requesting them to prepare the estimates of expenditure of their respective departments for the following financial year. The departments work their estimates on the basis of their previous year spending and the new schemes and projects which they intend to take up. These estimates are forwarded to the Ministry which after having scrutinized the estimates, prunes the excessive demands. Before the expenditure estimates are finalized, lot of wrangling may take place between the Ministry and the departments. However, the Ministry has final say in regard to all estimates. Estimates of plan outlay are scrutinized by the planning commission. Estimates of Government revenues are prepared by the Department of Revenue of Ministry of Finance. The department remains equipped with records of yields of various taxes and on their basis estimates of revenue for the ensuing year are worked out.
A Government budget may be a balanced, surplus or a deficit one. It is balanced when the tax revenue and expenditure proposed are equal. In the long run, every planner likes to have a balanced budget. It helps to activise economy and create conditions of boom and development.
Despite budget being prepared so wisely and scrutinized so effectively, it is said that in February more people have sleepless nights than at any other time of the year. Reasons being quite simple that normally in February Government comes out with the one document that affects the life of entire population. The industrialists fear of higher duties, the elite feel dread of higher income tax, the middle class is haunted by the specter of inflation and the poor brace themselves for dooms day. But truly opening, a budget needs not be treated as such as bad mess. It is made by the wise people in a wiser way to make it of the people and for the people. Budget has wide ramification. It plays a vital role in the economy of the State. Every citizen is interested in it. From the budget citizens can know which benefits they are going to derive and how much tax they will have to pay. The taxation policy of the Government in the budget may lead to narrowing down of class distinction and inequalities. The production policy in the budget may help in removing poverty, eradicating unemployment and avoiding misdistribution of wealth. It can cheek inflation and enables the citizens to lead their life with comfort and happiness. This clearly depicts that budget has tremendous social and economic implications in modern states.
Budget is much more than a mere balance sheet. Common people think that Budgets come and budgets go. Every year a lot is discussed and debated about the year’s budget and how for it is friendly for the masses. People think that schemes are made for the poor but on the ground level impact is that prices keep on rising to dizzy heights. The common man does not understand the technalities of the budget making but he only feels the Jolt when he has to pay more for everything he consumes. People think that due to preparation of budget prices rise and perturbing one and all. What to speak of the luxuries of life, even the prices of essential goods are touching such a new heights as one is rightly feeling disturbed and depressed. The rich feel concerned because the buying of the luxuries of life is consuming much of their income. The middle class people are worried because the attempt to maintain their standard costs their pockets much. The poor ones are crying because they do not even have sufficient to make their both ends meet. The problem of rising prices is linked by people with preparation of Budget. Since the price line is a life line and to hold life we will have to hold the price as it effects those very goods that provide subsistence and standard to life. Thus budget must provide services to below poverty line class, lower middle class and upper middle class so that they may not treat it just a topic for discussion for a month or two. The common man should be given to understand that budget is for him to map out his goals and make his dreams a reality. To indemnify common man and to control social disturbances, certainly the problem of soaring prices has to be tackled so that poor people could take handful of money in the market an come back home with basket full of goods. Knowing the feelings of common masses it reminds me this Urdu couplet.

“Aaj phir ne bujh jayai jal jal kai umidon kai charag,
Aaj phir ne dam today taron bhari raat”.

It is difficult to continue to believe; but believe in that Budget is for you. Favourable monsoon shall definitely come floating in and after every down pour your droughted gardens shall smile, flower and flourish. Hope is powerful thing. Let you hold fast to dreams as hope line is dreams. Be hopeful and do not underestimate the importance of Budget as budget is for you.


Email:----Khanhussain.ang@gmail.com


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Owner, Printer, Publisher, Editor: Farooq Ahmad Wani
Legal Advisor: M.J. Hubi
Printed at: Abid Enterprizes, Zainkote Srinagar
Published from: Gulshanabad Chraresharief Budgam
RNI No.: JKENG/2010/33802
Office No’s: 0194-2451076, 9622924716 , 9419400056
Postal Regd No: SK/135/2010-2019
Administrative Office: Abi Guzer Srinagar

© Copyright 2018 brighterkashmir.com All Rights Reserved.