Meaning of Budget and Its Components


 
 
Concept Explanation
 

Meaning of Budget and Its Components

Introduction of Budget and Economy

Government has several policies to implement in the overall task of performing its functions to meet the objectives of social and economic growth. For implementing these policies, it has to spend huge amount of funds on defence, administration, and development, welfare projects, and various other relief operations. Planning process of assessing revenue and expenditure is termed as Budget. It is a statement of the financial plan of the government. It shows the income and expenditure of the government during a financial year. The budget presents the overall picture of the financial performance of the government. It helps to the citizens to get an idea of the:

  • Financial performance of the government over the past one year
  • To know about the financial programmes and policies of the government for the next one year.
  • To know how their standard of living will be affected by the financial policies of the government in the next one year.
  • Meaning of Budget 

    The budget is an extensive account of the are Government's finances,in which revenues from all sources and expense of all activities undertaken are aggregated.The Finance Minister the union budget every year in last week of February in the Parliament that contains the Government of India's revenue and expenditure for one fiscal year, which runs from 1st April to 31st March.

    Types of Budget

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