Abstract
Fiscal policy is one of the most important instruments of government; Budget is a tool of fiscal policy, which has two major components; rising revenue and making appropriate expenditure for the overall development. The present study is tries to figure out the various components and trends of government of India. The study is based on secondary sources of data collected from RBI. The study uses tabular and graphical analysis to explain and understand the changes in the economy. The contribution of market borrowing is nearly more than 50% in most of the years. The contribution of revenue receipts to total receipts is high whenever Indian economy performs better, on the other hand the economy undergoes difficulties the revenue is aroused through capital receipts to meet the government expenditure. In this background the study has made an attempt to examine the contribution of capital receipts to total receipts in India.
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