What is annual financial statements, definition of annual financial statements, information on annual financial statements
The Annual Financial Statement is a document presented to Parliament every fiscal year as part of the budget process as required by Article 112 of the Constitution of India. The records consist of government revenue and expenditure for the current year, previous year, and budget year in three separate parts: Consolidated Fund of India, Provident Fund of India and the Public Account of India. The government presents each year to Parliament a statement of revenue and expenditure from these accounts.
Borrowings raised by the government, borrowings from the Reserve Bank of India (RBI), and borrowings from foreign governments or institutions are shown under capital receipts, which also shows loan collections, sale of assets, divestment, etc.
The difference between annual financial statements and budget
The term Budget is a common word for a number of documents, including the Annual Financial Statement. Other budget documents include the request for grants, the finance law, the finance law, the memorandum explaining the provisions of the finance law, the macroeconomic framework statement, the fiscal policy strategy statement, the expenditure statement in the medium term, etc.
The annual financial statement distinguishes expenditure under revenue from expenditure under other accounts, as provided for in the Constitution. The income and capital sections together form the Union budget, so the annual financial statement is essentially the government budget.