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Meaning of budget

Budget is a financial statement showing expected receipts and expenditures of the Government in the forthcoming financial year. A Government budget is a financial plan of the outlay and receipts of the Government.
Receipts of the Government include:
  • Taxes- both, direct and indirect
  • Profits from financial institutions
  • Government commercial undertakings
  • Interest from loans given to other Governments, local bodies, etc.
Expenditures of the Government include:
  • Construction of roads, railways
  • Production of energy
  • Non-developmental expenditures like defence, subsidies, police, etc.


  • If the receipts are equal to the expenditure, it is said to be balanced budget
  • If the receipts are greater than the expenditure, It is said to be surplus budget
  • If the receipts are lower than the expenditure, it is said to be deficit budget

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