Revised Estimates

Under Article 112 of the Constitution of India, the Union Budget, also known as the annual financial statement, is presented by the Finance Minister of India. It provides information on the estimated allocation of funds to different departments, schemes, and ministries. It also provides the details of the government receipts in the upcoming financial year. 

The budget includes details of expenditures and receipts for both the current and previous financial years, providing a clear picture of the country's financial health. The expenditure and receipt numbers are categorized into budget estimates, revised budget, and actual.

Let us read more about revised estimate, budget estimate, importance of revised estimate, uses of revised estimate, difference between revised estimates and budget estimates, and more in detail. 

What is Revised Estimates?

In revised estimates, the government provides the actual figures of the funds disbursed or will be disbursed by the end of the financial year or the total revenue collected or will be collected.

The revised estimates are provided against the budget estimates for the current financial year. The revised estimates are provided based on the progress made using the budget estimates for the financial year.

Importance of Budget Estimates and Revised Estimates

The following reasons why the budget estimate and revised estimate is important:

• Displays government priorities: Budget estimates indicate the government’s initial vision for growth, infrastructure, and welfare. Revised estimates show how the initial vision has been adjusted based on actual circumstances. Eg, tackling inflation. 
• Indicates Financial Health: If the revised estimate consistently rises over budget estimates, it could indicate higher borrowings, potentially leading to higher taxes or inflation in the future.
• Influencing Public Services: Any changes in revised estimates can impact allocations for sectors like healthcare, education, and infrastructure, directly impacting your quality of life.

Uses of Budget Estimate and Revised Estimate in the Budget

The following are the uses of the budget estimate and the revised estimate in the budget:

• Transparency: Comparing the budget estimate and the revised estimate allows for checking whether the government is delivering on its promises or struggling with implementation.
• Adjust allocation: Revised estimate helps in adjusting allocations if priorities shift, such as increased spending on disaster relief or healthcare.
• Policy planning: BE sets the framework for government programmes, signalling focus areas for the year ahead. 

What are Budget Estimates?

During the upcoming financial year, the budget estimate indicates the expected revenue and expenditure by various departments and programs.

Various ministries and departments sought funds based on estimates of the government projects. It also takes into consideration the revenue guidance provided by the department concerned during the pre-budget consultations.

 The funds are allocated before the start of the fiscal. The actual disbursement of the funds starts from April 1 once the appropriation bill is passed by the parliament.

Difference between Revised Estimates and Budget Estimates

 Here are difference between revised estimate and budget estimate: