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