Budget 2023: This Law Plays A Key Role In Government Expenses

There are two other documents which are a 21st Century addition to the Union Budget.

The Union Budget is not a single document. It is a list of 13 documents and three of them - Annual Financial Statement (AFS), Demands for Grants (DG) and the Finance Bill - are mandated by Article 112,113 and 110(a) of the Constitution. Some documents are explanatory notes, which support the mandated documents with narrative for quick or contextual references.  

There are two other documents which are a 21st Century addition to the Union Budget. These documents - Macro-Economic Framework Statement and Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement - are statements under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. These documents broadly look at the economic health of the country.  

What is the FRBM Act? 

This Act was enacted in 2003 to help the Centre adhere to the path of fiscal consolidation, which refer to concrete policies for reducing government deficits and debt accumulation. It came into force on July 5, 2004. The Act mandates the Centre to limit the fiscal deficit up to three per cent of Gross Domestic Product (GDP) by March 31, 2021. It further mandates the Centre to limit the General Government Debt to 60 per cent of the GDP and the Centre's Debt to 40 per cent of GDP, by March 31, 2025.