The Annual Financial Statement has a lot of jargons which is very difficult for a layman to understand. The Annual Budget, which is a 16 page document, provides all the details regarding the total receipts and expenditure of the government. Consolidated fund, Public Account and Contingency fund are the three parts in which the Annual Budget is divided into.
Contingency Fund
Any unforeseen or unexpected expenditure is met from this Contingency fund of Rs. 500 crore at the disposal of the President.
Revenue Receipt/ Expenditure
All receipts and expenditures which do not involve creation or sale of assets fall comes under revenue account.
Capital receipt/ expenditure
All receipts from lending and liquidating of assets is shown under capital account.
Public Account
This account is a collection of money from funds which belong to others such as public provident funds.
Consolidated Fund
All the revenues of the Government including money borrowed and loans flow into this fund. All expenditures of the government are made from this fund.