Budget receipts refer to the estimated money receipts of the government from all sources during the fiscal year.
Broadly, the budget receipts are classified as :
(a) Revenue receipts
(b) Capital receipts
Budget expenditure refers to an estimated expenditure of the government relating to its development as well as non-development programmes during the fiscal year. Revenue budget of government has the following two broad divisions :
(a) Revenue Receipts
(b) Revenue expenditure
Here, we wll discuss revenue receipts and revenue expenditure :
(a) Revenue receipts : Revenue receipts of the government may be defined as those money receipts which do not create a liability for the government and also do not lead to reduction in assets of the government. Revenue Receipts are further classified into Tax Receipts and Non-Tax Receipts.
Tax receipts include-income tax, corporation tax, gift tax, customs duty, etc. Non-tax receipts include fees, fines, grants, special assessment, income from public enterprises, etc.
(b) Revenue expenditure : Revenue expenditure refers to an estimated expenditure of the government in a fiscal year which does not create assets or cause a reduction in liabilities. Revenue expenditure includes wages bill of the government, interest payments, expenditure on subsidies, defence purchases, etc.
