BUDGET

BUDGET ?

Budget is the estimate of income and expenditure for a future period as opposed to an account of
which records financial transactions . Budget is an essential element in the planning and control
of financial affairs of a national is made necessarly because income and expenditure do not
occurs simultaneously i.e income or revenue receipts and expenditure are do not always
consider.

TYPES OF BUDGET

Deficit budget

Balanced budget

Surplus budget

• DEFICIT BUDGET
A government budget is said to be a deficit budget if the estimated government
expenditure exceeds the expected government revenue in a particular financial year. This
type of budget is best suited for developing economies, such as India.
•
BALANCED BUDGET
A government budget is said to be a balanced budget if the estimated government
expenditure is equal to expected government receipts in a particular financial year

• SURPLUS BUDGET
A government budget is said to be a surplus budget if the expected government revenues
exceed the estimated government expenditure in a particular financial year.

WHO WILL PREPARE THE BUDGET ?

• The finance ministry issues guidelines to spending based on which minister presents their
demands.
• The budget division of department of economic affairs said that finance ministry is a
nodal body for producing the budget.
 • According to article 112 of the indian constitution union budget will prepare statement
estimated receipts and expendature of that particular year.

WHEN THE BUDGET IS PEPARED?

• The newly appointed finance minister nirmala sitaraman presented the budgetfor 2019-
2020 on july 5in parliament
• This is first budget of modi government
• The president will be requested to pass the bill in both houses of parliament assembles
central hall of parliament

HOW THE BUDGET IS PREPARED?

• The budget is preparedthrough calculative process between finance ministry and

spending ministry
• The finance ministry gives guide lines to spending ministries plan and present for budget
allocation
• Budget circular issues in the month of september the budget cycle
• It guides ministries and departments for preparing revised estimates [for the past year]
and budget estimates [for the next year]

WHY THE BUDGET IS PREPARED?

• Any politicalparty which forms government in the center has certain social ,political and
economic responsibilities
• In countries with deep cultural religious and economic diversity such as india it is
extremely important for the government to allocate resources wisely
• Various factors such as uplifting the under priviliged sections of the society ,faccilitating
financial inclusion upgrading defence capabilities providing proper educational facilities
and much more focussed on .
• There fore a well planned budget is of atmost important for any government to ensure
economic stability and growth rate.