Economy

Union Budget and Deficits: Fiscal, Revenue

The Union Budget, called the Annual Financial Statement under Article 112, is presented to Parliament every year, normally on 1 February. The fiscal deficit is total expenditure minus total receipts excluding borrowings, and shows how much the Government must borrow.

Last reviewed 2026-10-15

Deficit formulas

Revenue deficit = revenue expenditure minus revenue receipts.
Fiscal deficit = total expenditure minus total receipts excluding borrowings.
Primary deficit = fiscal deficit minus interest payments.
Effective revenue deficit = revenue deficit minus grants for creation of capital assets.

Constitutional provisions

Article 112: Annual Financial Statement.
Article 266: Consolidated Fund of India and Public Account. Article 267: Contingency Fund.
Money Bills are defined in Article 110 and can be introduced only in the Lok Sabha.
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 sets targets to contain the fiscal deficit.

Good to know

From 2017 the Railway Budget was merged with the Union Budget, and the presentation date moved to 1 February. Check the current year's numbers in the daily current affairs editions.

Frequently asked questions

Which article deals with the Union Budget?

Article 112.

What is the formula for primary deficit?

Fiscal deficit minus interest payments.

When is the Union Budget normally presented?

On 1 February.