Annual Financial Statement
Budget Process Intermediateवार्षिक वित्तीय विवरण
Definition
The Annual Financial Statement (Article 112) is the constitutional name for the Union Budget. It is a statement of estimated receipts and expenditure for the financial year. It shows separately the amounts charged on the Consolidated Fund (non-votable) and amounts requiring Parliamentary approval (votable). The Budget divides expenditure into revenue and capital accounts.
Related Budget Terms
Why Annual Financial Statement Matters
Understanding annual financial statement is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like annual financial statement help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, annual financial statement is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
Explore Budget Data
Explore More Budget Terms
Browse our glossary of 100+ government budget terms