Introduction and Context

What is Public Finance?

Public finance is the study of how governments raise revenue, allocate expenditure, and manage debt to fulfill their economic and social objectives. For India, it is the primary instrument to redirect resources toward infrastructure, welfare, and inclusive growth while maintaining macroeconomic stability.

The Union Budget

The Union Budget is India's annual financial statement, presented under Article 112 of the Constitution ("Annual Financial Statement"). It presents the government's estimates of revenue and expenditure for the coming fiscal year (April–March) and is the most significant policy document tabled in Parliament.

Since 2017, the Budget presentation date was shifted from the last day of February to 1 February (under Arun Jaitley), merging the Railway Budget with the General Budget.

Why This Topic Matters for RAS 2026

Topic 27 has appeared in every RPSC exam from 2013 to 2023 — 16 total marks over 5 years. This makes it the most consistent topic in Paper I Unit II Economics after Rajasthan-specific welfare schemes.

Key areas to master for 2026:

• Union Budget 2025-26 data and fiscal consolidation targets
• Four types of deficits
• GST revenue figures
• Finance Commission recommendations
• FRBM targets and escape clause

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