1. Conceptual Foundation

Meaning and Purpose

Fiscal Policy is the deliberate use of government taxation, public expenditure, and borrowing to influence macroeconomic conditions—including aggregate demand, employment, inflation, capital formation, and economic growth. The Union Budget is the primary operational instrument through which fiscal policy is presented, authorized, and executed. Under Article 112 of the Constitution, the budget is laid before Parliament as the Annual Financial Statement (AFS). To ensure medium-term financial discipline, transparency, and accountability, statutory frameworks like the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 mandate the presentation of key policy statements alongside the budget, notably the Macroeconomic Framework Statement.

Importance

In civil services examinations (TGPSC / UPSC), Unit 7.2 is a top-tier core theme. Questions frequently evaluate:

1. Constitutional provisions governing the budget process (Articles 110, 112, 113, 114, 265, 266, and 267).
2. The six sequential stages of budget enactment in Parliament (including Cut Motions and the Appropriation vs. Finance Bill distinction).
3. Fiscal policy stances (Expansionary, Contractionary, and Neutral) and their macroeconomic spillover effects (e.g., the Crowding-Out Effect).
4. Statutory documents mandated by the FRBM Act, 2003 (Macroeconomic Framework Statement, Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement, and Medium-Term Expenditure Framework).
5. Modern budgeting techniques (Zero-Based Budgeting, Outcome Budgeting, and Gender Budgeting).

How Concepts Connect

1. Macroeconomic Direction: The government formulates its Fiscal Policy stance to address economic conditions (e.g., expansionary stimulus during a recession or contractionary tightening during high inflation).
2. Constitutional Authorisation: Fiscal policy proposals are codified in the Union Budget (Annual Financial Statement) and presented to Parliament under Article 112.
3. Parliamentary Scrutiny & Enactment: Money cannot be withdrawn from the Consolidated Fund of India without an Appropriation Bill (Article 114), and no tax can be levied without a Finance Bill (Article 110/265) passed through specified legislative stages.
4. Statutory Fiscal Discipline: Under the FRBM Act, 2003, the government must present the Macroeconomic Framework Statement to justify its growth forecasts and fiscal targets, ensuring public accountability and long-term fiscal consolidation.

                            FISCAL POLICY & UNION BUDGET ARCHITECTURE
                                                |
        +---------------------------------------+---------------------------------------+
        |                                                                               |
  FISCAL POLICY STANCES                                                         UNION BUDGET & STATUTORY STATEMENTS
  (Macroeconomic Management)                                                    (Constitutional & FRBM Mandates)
        |                                                                               |
        +---> Expansionary (Tax Cuts / Spending Hikes)                                  +---> Constitutional Framework
        |      (Fights Recession; Risks Crowding-Out)                                   |      |---> Art. 112: Annual Financial Statement (AFS)
        |                                                                               |      |---> Art. 113: Estimates & Demands for Grants
        +---> Contractionary (Tax Hikes / Spending Cuts)                                |      |---> Art. 114: Appropriation Bill
        |      (Curbs Demand-Pull Inflation)                                            |      |---> Art. 110: Money Bill / Finance Bill
        |                                                                               |
        +---> Neutral (Balanced Budget)                                                 +---> Parliamentary Enactment (6 Stages)
                                                                                        |      (Presentation -> Discussion -> Scrutiny ->
                                                                                        |       Voting on Demands -> Appropriation -> Finance Act)
                                                                                        |
                                                                                        +---> FRBM Mandated Statements
                                                                                               |---> Macroeconomic Framework Statement
                                                                                               |---> Medium-Term Fiscal Policy Strategy Statement
                                                                                               |---> Medium-Term Expenditure Framework

Key Terms

1. Fiscal Policy: Government policy concerning taxation, public spending, and sovereign borrowing to achieve macroeconomic growth, stability, and equity.
2. Annual Financial Statement (AFS): The constitutional name for the Union Budget under Article 112, showing estimated receipts and expenditures for the upcoming financial year.
3. Macroeconomic Framework Statement: A statutory document mandated by the FRBM Act, 2003, presenting an assessment of GDP growth, fiscal balance, external balance, and inflation trends.
4. Appropriation Bill: A bill introduced under Article 114 authorizing the withdrawal of funds from the Consolidated Fund of India to meet voted Demands for Grants and charged expenditures.
5. Finance Bill: A Money Bill introduced under Article 110 giving effect to the financial and taxation proposals of the government for the upcoming fiscal year.
6. Crowding-Out Effect: Economic phenomenon where heavy government market borrowing drives up interest rates, making credit expensive and dampening private corporate investment.
7. Cut Motions: Parliamentary tools moved in the Lok Sabha during Voting on Demands for Grants to oppose or reduce specific budgetary allocations (Policy Cut, Economy Cut, Token Cut).
8. Fiscal Marksmanship: The degree of accuracy in a government's budgetary forecasts compared to actual financial outcomes realized a year later.
9. Zero-Based Budgeting (ZBB): A budgeting method where all operational expenses must be justified from a "zero base" for each new period, rather than adjusting previous budgets.
10. Off-Budget Borrowings: Borrowings raised by public sector entities or special vehicles on behalf of the government to fund state schemes, keeping the debt off the official budget balance sheet.

Short Timeline of Budgetary & Fiscal Reforms

1. 1860: Presentation of the first formal Budget in British India by James Wilson.
2. 1921 (Acworth Committee): Separation of the Railway Budget from the General Budget (re-merged in 2017).
3. 1987: Introduction of Zero-Based Budgeting (ZBB) in the Union Budget under the Ministry of Finance.
4. 2000 (Geetha Krishnan Committee): Setup of the Expenditure Reforms Commission (ERC) to downsize government non-developmental expenditure.
5. 2003: Enactment of the Fiscal Responsibility and Budget Management (FRBM) Act, institutionalizing statutory fiscal discipline.
6. 2005: Introduction of Outcome Budgeting and Gender Budgeting in the Union Budget.
7. 2017: Three historic budget reforms executed simultaneously:
   • Merger of the Railway Budget into the main Union Budget.
   • Advancement of budget presentation date to February 1 (eliminating the need for a temporary Vote on Account under Article 116).
   • Abolition of the legacy distinction between Plan and Non-Plan Expenditure.

2. Complete Core Notes

A. Fiscal Policy: Concept, Objectives & Stances

1. Definition and Keynesian Foundation

Fiscal policy refers to the strategic use of state revenues (taxation) and public spending to guide national economic performance. Grounded in Keynesian economic theory (developed by John Maynard Keynes during the Great Depression of the 1930s), it posits that government intervention can smooth out business cycle fluctuations and stabilize aggregate economic demand.

2. Primary Objectives of Fiscal Policy

1. Accelerating Capital Formation & Economic Growth: Mobilizing domestic savings through taxation and directing capital toward productive infrastructure (highways, railways, energy).
2. Promoting Social Equity & Wealth Redistribution: Deploying progressive taxation (higher rates on higher income) and funding targeted welfare schemes (food subsidies, free healthcare, social security pensions).
3. Maintaining Price Stability: Adjusting tax rates and expenditure cutbacks to cool aggregate demand during inflationary surges.
4. Generating Full Employment: Directing public investment into labor-intensive infrastructure and employment programs (e.g., MGNREGA).
5. Correcting Regional Imbalances: Offering tax concessions, capital subsidies, and special grants to industries locating in backward or underdeveloped regions.

3. Three Stances of Fiscal Policy

1. Expansionary Fiscal Policy:
   • Mechanism: Involves increasing government expenditure, reducing tax rates, or a combination of both.
   • Objective: Boosts aggregate market demand and household purchasing power to pull the economy out of a recession or demand slowdown (e.g., 2008 post-crisis fiscal stimulus).
   • Risks: May lead to higher fiscal deficits, inflation, and the Crowding-Out Effect (where high government borrowing drives up market interest rates and represses private corporate investment).
2. Contractionary Fiscal Policy:
   • Mechanism: Involves decreasing government spending, increasing tax rates, or both.
   • Objective: Reduces liquidity and overall aggregate demand to tame overheating and high demand-pull inflation.
3. Neutral Fiscal Policy:
   • Mechanism: Occurs when government expenditure is fully funded by tax revenues (a balanced budget).
   • Objective: Implemented when the economy is in structural equilibrium (Aggregate Demand = Aggregate Supply), neither stimulating nor depressing overall growth.

B. The Union Budget: Constitutional Framework & Nodal Bodies

1. Constitutional Basis

The term "Budget" does not appear anywhere in the Constitution of India. It is constitutionally referred to as the Annual Financial Statement (AFS) under Article 112.

2. Key Constitutional Provisions

• Article 112: Mandates the President of India to cause to be laid before both Houses of Parliament the Annual Financial Statement for each financial year (April 1 to March 31).
• Article 110: Defines a Money Bill (containing provisions dealing exclusively with taxation, government borrowings, or withdrawals from the Consolidated Fund).
• Article 113: Governs procedure regarding estimates (Demands for Grants); states that expenditure charged on the Consolidated Fund shall not be submitted to the vote of Parliament (though it can be discussed).
• Article 114: Mandates the passage of an Appropriation Bill to authorize any withdrawal of money from the Consolidated Fund of India.
• Article 116: Governs Vote on Account (temporary grant to cover expenditure pending budget passage; largely rendered obsolete after advancing the budget date to February 1).
• Article 265: Prohibits the levying or collection of any tax except by authority of law.
• Article 266: Establishes the Consolidated Fund of India (266(1)) and the Public Account of India (266(2)).
• Article 267: Establishes the Contingency Fund of India.

3. Nodal Preparing Authority

The Budget Division of the Department of Economic Affairs (DEA), functioning under the Ministry of Finance, is the nodal agency responsible for preparing the Central Government Budget. The Economic Survey is prepared separately by the Economic Division of the DEA under the guidance of the Chief Economic Adviser (CEA) and is presented a day before the budget.

C. Six Stages of Budget Enactment in Parliament

1. Presentation of the Budget:
   • Presented in the Lok Sabha by the Union Finance Minister accompanied by the Budget Speech.
   • Speech Components: Part A contains a general macroeconomic survey of the economy; Part B contains specific tax and revenue proposals.
   • Rule: No discussion on the budget takes place on the day of presentation.
2. General Discussion:
   • Takes place in both the Lok Sabha and Rajya Sabha over several days.
   • Limited to a broad examination of fiscal policy and administrative principles. No voting takes place and no cut motions are moved at this stage.
3. Scrutiny by Departmental Standing Committees:
   • Both Houses adjourn for 3–4 weeks.
   • 24 Departmental Related Standing Committees (DRSCs) examine the detailed Demands for Grants of their respective ministries and submit reports to Parliament.
4. Voting on Demands for Grants:
   • Conducted EXCLUSIVELY in the Lok Sabha (Rajya Sabha has no power to vote on demands).
   • Members of Parliament can move Cut Motions to oppose allocations:
     • Policy Cut Motion: Represents disapproval of the policy underlying the demand. States that the amount of the demand be reduced to Re 1.
     • Economy Cut Motion: Asserts that the allocation is economically excessive. States that the amount of the demand be reduced by a specified amount.
     • Token Cut Motion: Expresses a specific grievance within the sphere of responsibility of the Government. States that the amount of the demand be reduced by Rs 100.
   • Guillotine: On the last allotted day for voting, the Speaker puts all remaining un-discussed Demands for Grants to vote simultaneously to complete the process within the stipulated timeline.
5. Passing of the Appropriation Bill:
   • Introduced under Article 114 to authorize the expenditure voted by the Lok Sabha and the charged expenditure on the Consolidated Fund of India. No amendment can be proposed that alters the amount or destination of any grant.
6. Passing of the Finance Bill:
   • Introduced under Article 110 to give legislative effect to the taxation and revenue proposals. Under the Provisional Collection of Taxes Act, 1931, the Finance Bill must be enacted (passed by Parliament and assented to by the President) within 75 days of its introduction.

D. Documents Mandated by the FRBM Act, 2003

Under the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, the government is statutorily required to lay three key macroeconomic statements before both Houses of Parliament alongside the Annual Financial Statement:

1. Macroeconomic Framework Statement (MFS):
   • Evaluates the overall growth prospects of the economy.
   • Contains explicit assessments regarding GDP growth rate, fiscal balance of the Central Government, external account balance (Current Account Deficit), and inflation trends.
2. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement:
   • Sets out three-year rolling targets for six specific fiscal indicators in relation to GDP at market prices:
     • Fiscal Deficit
     • Revenue Deficit
     • Primary Deficit
     • Tax Revenue
     • Non-Tax Revenue
     • Total Central Government Debt
   • Outlines policy priorities relating to taxation, expenditure, subsidies, administered prices, and sovereign borrowings, providing rationale for any deviations from stated fiscal goals.
3. Medium-Term Expenditure Framework Statement (MTEF):
   • Introduced via an amendment in 2012.
   • Sets three-year rolling expenditure targets across major schemes, capital outlays, and contingent liabilities, enabling de-novo scrutiny to weed out obsolete government programs.

E. Types of Budgeting Frameworks

1. Line-Item Budgeting (Traditional):
   • Focuses strictly on financial ceilings and objects of expenditure (salaries, travel, office supplies).
   • Objective: Prevents administrative units from exceeding assigned financial limits, but fails to measure physical outputs or real-world quality of spending.
2. Performance Budgeting:
   • Establishes a direct correlation between financial inputs (money spent) and physical outputs (miles of road built, schools opened).
3. Zero-Based Budgeting (ZBB):
   • Introduced in India in 1987. Operates on the principle that the budget starts from a "zero base" every year; every existing and new scheme must justify its funding de-novo based on cost-benefit merit.
4. Outcome Budgeting:
   • Introduced in India in 2005. Goes beyond physical outputs to evaluate actual qualitative outcomes and long-term socio-economic impacts (e.g., measuring drop-out rate reduction rather than just school buildings constructed).
5. Gender Budgeting:
   • Introduced in India in 2005–06. Analyzes the budget through a gender lens to ensure equitable resource allocation. It contains two parts:
     • Statement 20 (Part A): Details schemes with 100% allocation for women.
     • Statement 20 (Part B): Details schemes with at least 30% allocation for women.
6. Green Budgeting:
   • Formally tracks budgetary outlays directed toward climate mitigation, environmental conservation, and renewable energy transitions.

F. Key Fiscal Terminology & Applied Concepts

• Fiscal Marksmanship: Refers to the statistical accuracy of a government's budgetary forecasts. A wide divergence between Budget Estimates (BE) and actual realization figures indicates poor fiscal marksmanship.
• Pump Priming: Small-scale, targeted government expenditure during a recession designed to stimulate private investment and trigger a self-sustaining economic recovery.
• Fiscal Slippage: Occurs when the government's actual realized fiscal deficit exceeds the budgeted fiscal deficit target set at the beginning of the financial year.
• Off-Budget Borrowings: Borrowings undertaken by public sector undertakings (PSUs) or special purpose vehicles (SPVs) on behalf of the Central Government (e.g., NABARD funding food subsidies for FCI). These are not counted in the official budget fiscal deficit, although the government bears the ultimate repayment liability.

3. Key Concepts & Distinctions

Table 1: Stances of Fiscal Policy

Table 2: Appropriation Bill vs. Finance Bill

Table 3: Types of Cut Motions in Lok Sabha

Table 4: Zero-Based Budgeting (ZBB) vs. Outcome Budgeting

4. Important One-Liners

1. Fiscal Policy refers to government policy dealing with taxation, public expenditure, and borrowing to achieve macroeconomic goals.
2. The term "Budget" does not appear in the Indian Constitution; it is named the Annual Financial Statement (AFS) under Article 112.
3. The Macroeconomic Framework Statement is a statutory document mandated by the FRBM Act, 2003.
4. The nodal division responsible for preparing the Union Budget is the Budget Division of the Department of Economic Affairs (Ministry of Finance).
5. The Economic Survey is authored by the Chief Economic Adviser and presented a day before the budget.
6. Article 265 dictates that no tax shall be levied or collected except by authority of law.
7. An Appropriation Bill introduced under Article 114 is mandatory to withdraw funds from the Consolidated Fund of India.
8. A Finance Bill is a Money Bill under Article 110 that enacts the government's taxation proposals.
9. Under the Provisional Collection of Taxes Act, 1931, the Finance Bill must be passed and assented to within 75 days.
10. Voting on Demands for Grants takes place exclusively in the Lok Sabha under Article 113.
11. A Policy Cut Motion moves to reduce the demanded expenditure amount to Re 1.
12. A Token Cut Motion moves to reduce the demanded expenditure amount by Rs 100.
13. Guillotine refers to the parliamentary procedure where all remaining un-discussed Demands for Grants are put to vote at once on the final day.
14. In 2017, the Railway Budget was merged with the Union Budget based on the recommendations of the Bibek Debroy Committee.
15. Advancing the Union Budget date to February 1 in 2017 eliminated the requirement for a temporary Vote on Account under Article 116.
16. The legacy distinction between Plan and Non-Plan Expenditure was abolished in the 2017–18 Union Budget (Rangarajan Committee recommendation).
17. Zero-Based Budgeting (ZBB) was first introduced in India in 1987 to eliminate redundant schemes.
18. Outcome Budgeting was introduced in India in 2005 to track physical deliverables and qualitative impacts.
19. Gender Budgeting was institutionalized in India in 2005–06 (Statement 20 in Budget documents).
20. The Crowding-Out Effect occurs when excess government market borrowing drives up interest rates and represses private corporate investment.
21. Pump Priming involves small, targeted public expenditure during a recession to spur self-sustaining private economic recovery.
22. Fiscal Marksmanship measures the accuracy of budgetary estimates relative to actual realized financial numbers.
23. Off-Budget Borrowings are debt liabilities incurred by PSUs/SPVs on behalf of the government, remaining outside official fiscal deficit data.
24. Fiscal Slippage occurs when the actual realized fiscal deficit exceeds the original budget estimate.
25. Under the FRBM Act, the FM presents a quarterly review of receipts and expenditures before Parliament.
26. The Medium-Term Expenditure Framework Statement (MTEF) was introduced via a 2012 amendment to the FRBM Act.
27. Departmental Related Standing Committees (24 DRSCs) scrutinize ministry-wise Demands for Grants during parliamentary recess.
28. Expenditure "Charged" on the Consolidated Fund of India can be discussed in Parliament but is not subject to parliamentary vote.
29. The Contingency Fund of India (Article 267) operates as an executive imprest fund held by the Finance Secretary on behalf of the President.
30. Ad-hoc Treasury Bills for automatic deficit monetization were abolished in 1997 and replaced by Ways and Means Advances (WMA).

5. PYQ-Based Bits

• Mandate for the Macroeconomic Framework Statement (UPSC 2020): Along with the Budget, the Finance Minister places 'The Macroeconomic Framework Statement' before Parliament. This document is presented because it is mandated by the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.
• Impact of Expansionary Fiscal Policy & Crowding Out (UPSC 2017, 2022): An increase in government expenditure met by heavy market borrowing can raise interest rates, resulting in the crowding out of private corporate investment.
• Capital Budgeting Components (UPSC 2016): Capital budget components include:
  1. Expenditure on acquisition of physical assets (roads, buildings, machinery).
  2. Loans received from foreign governments.
  3. Loans and advances granted by the Centre to States and UTs.
• Actions to Reduce Persistent Budget Deficits (UPSC 2015, 2016): To reduce persistent deficits, the government can:
  1. Reduce revenue expenditure.
  2. Rationalize subsidies. (Note: Introducing new welfare schemes or cutting import duties increases expenditure / reduces revenue, worsening the deficit).
• Fiscal Consolidation Roadmap & NK Singh Panel (UPSC 2018): The FRBM Review Committee (NK Singh, 2017) recommended a General Government Debt-to-GDP ratio of 60% (40% Centre, 20% States) by 2023.
• Constitutional Authorization for Expenditures (UPSC 2012, 2020): Authorization of the Parliament of India via an Appropriation Act (Article 114) is mandatory before any money can be withdrawn from the Consolidated Fund of India.

6. analysis.pdf Exam Analysis

• Priority: HIGH (Unit 7.2 is a core pillar tested consistently across UPSC CSE and State PSC examinations under public finance and constitutional governance).
• Frequently Tested Subtopics:
  1. Statutory Budget Documents: FRBM Act mandates (Macroeconomic Framework Statement, Medium-Term Fiscal Policy Strategy Statement).
  2. Constitutional Articles governing finances: Articles 110 (Money Bill), 112 (AFS), 113 (Grants), 114 (Appropriation), 265 (Tax authority), 266 (Consolidated Fund), 267 (Contingency Fund).
  3. Legislative Process of Budget Enactment: Voting on Demands for Grants (Lok Sabha exclusive), Cut Motions (Policy, Economy, Token), Guillotine, and Finance Bill rules.
  4. Fiscal Policy Stances & Deficit Control: Expansionary vs. Contractionary policy consequences, Crowding-Out effect, and deficit reduction measures.
• Common Question Patterns: Multi-statement MCQs requiring matching of budget documents to their legal origin (Constitution vs. FRBM Act), identifying the nature of cut motions, and evaluating economic consequences of fiscal stimulus.
• Factual / Conceptual / Numerical / Statement Tendency: Heavily Statement-Based Conceptual paired with Exact Constitutional Articles & Statutory Titles (Articles 112/114/265/266/267, FRBM 2003 provisions, 75-day Finance Bill limit, Feb 1 presentation date).
• Simple Frequency Terms: FRBM Mandated Statements (Very Frequent); Budget Enactment Stages & Cut Motions (Very Frequent); Constitutional Articles (112, 114, 265, 266) (Very Frequent); Budgeting Types (ZBB, Outcome, Gender) (Frequent).

7. Exam Traps

• Confusion: Believing that the 'Macroeconomic Framework Statement' is presented under Article 112 of the Constitution of India. → Correct understanding: The Annual Financial Statement is presented under Article 112. The Macroeconomic Framework Statement is statutorily mandated by the FRBM Act, 2003 (not explicitly written in the Constitution).

• Confusion: Assuming that Rajya Sabha members vote on Demands for Grants alongside Lok Sabha members. → Correct understanding: Voting on Demands for Grants is the EXCLUSIVE privilege of the Lok Sabha. The Rajya Sabha can only discuss the budget; it has no voting power over Demands for Grants.

• Confusion: Confusing Policy Cut Motion with Token Cut Motion. → Correct understanding: A Policy Cut Motion reduces the demanded grant amount to Re 1 (disapproving underlying policy). A Token Cut Motion reduces the demanded amount by Rs 100 (expressing a specific grievance).

• Confusion: Believing that 'Charged Expenditure' on the Consolidated Fund of India is voted upon by Parliament. → Correct understanding: Expenditure charged on the Consolidated Fund (e.g., salaries of Supreme Court Judges, CAG, debt servicing) can be discussed in Parliament, BUT IS NOT SUBJECT TO VOTING.

• Confusion: Assuming that Off-Budget Borrowings are automatically included when calculating the government's official Fiscal Deficit. → Correct understanding: Off-Budget Borrowings ARE EXCLUDED from official Fiscal Deficit statistics, which is why governments historically used them to keep official deficit numbers artificially low.

8. Rapid Revision

1. Fiscal Policy Core: Government policy on taxation, public spending, and borrowing to direct aggregate economic demand.
2. Keynesian Theory: Origin of modern fiscal policy; advocates counter-cyclical government spending during recessions.
3. Annual Financial Statement: Constitutional term for the Union Budget under Article 112.
4. Nodal Budget Authority: Budget Division, Department of Economic Affairs (DEA), Ministry of Finance.
5. Economic Survey: Prepared by CEA; presented a day prior to the Union Budget.
6. No Tax Without Law: Mandated by Article 265 of the Constitution.
7. Appropriation Bill: Introduced under Article 114 to authorize withdrawals from the Consolidated Fund of India.
8. Finance Bill: Money Bill under Article 110 enacting taxation proposals; must pass within 75 days.
9. Six Enactment Stages: Presentation -> General Discussion -> Committee Scrutiny -> Voting on Demands -> Appropriation Bill -> Finance Bill.
10. Demands Voting Privilege: Voting on Demands for Grants is exclusive to the Lok Sabha.
11. Policy Cut Motion: Disapproves policy; reduces demand to Re 1.
12. Economy Cut Motion: Reduces demand by a specified monetary amount.
13. Token Cut Motion: Expresses specific grievance; reduces demand by Rs 100.
14. Guillotine: Putting all remaining un-discussed Demands for Grants to vote on the final allotted day.
15. 2017 Budget Reforms: Railway Budget merged, budget date advanced to Feb 1, Plan/Non-Plan split removed.
16. Vote on Account (Art 116): Temporary grant for 2 months; made obsolete by advancing budget presentation to Feb 1.
17. Macroeconomic Framework Statement: Statutory document mandated by the FRBM Act, 2003.
18. Medium-Term Fiscal Policy Statement: Sets 3-year rolling targets for 6 fiscal indicators under the FRBM Act.
19. MTEF Statement: Introduced in 2012 under FRBM; sets 3-year rolling expenditure targets.
20. Zero-Based Budgeting (ZBB): Evaluates all programs from scratch every year; introduced in India in 1987.
21. Outcome Budgeting: Measures qualitative impacts and real outcomes; introduced in India in 2005.
22. Gender Budgeting: Analyzes budget through gender lens; introduced in 2005–06 (Statement 20).
23. Expansionary Policy Risk: Causes high deficits, inflation, and Crowding Out of private investment.
24. Fiscal Marksmanship: Accuracy of budgetary forecasts compared to actual realizations.
25. Charged Expenditure: Can be discussed in Parliament, but cannot be voted upon.