The two components of Govt. budget are
(i) Revenue Budget : Revenue budget consists of revenue receipts of the Govt. and the expenditure met from such revenues. The revenue receipts include tax revenue and nontax revenue.
(ii) Capital Budget : It consists of capital receipts and capital expenditure of the Govt. Capital receipts include market borrowing, foreign debts, repayment of loans and advances. Capital expenditure includes construction of buildings, bridges, repayment of loans etc.
