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Sunday, June 24, 2018

Government Budget | Facts & Defects

Meaning Of Budget

The term “budget” has been originated from the French word “Bonnette” which means a small bag. This bag contains an economic bill which is presented by the finance minister in the parliament every year. In other words, the budget is an annual financial statement of the estimated receipts and expenditure of the government for a given period that is for a year.

Government Budget


According to Rene Stourn, the budget is a document containing a preliminary approved plan of public revenue and expenditure.

According to P.F. Taylor, the budget is a master financial plan of the government. It brings together estimates of anticipated revenue and proposed expenditure for the budget years.

As on the basis of above definition, it can be conducted that, the budget is the annual financial statement of the estimated receipts and expenditure of the government of India or a state government in respect of a financial year. It contains three sets of figures, the accounts of the actual, for the preceding year, the revised estimates of the current year and the budget estimates of the current year and the budget estimates for the following year.

The budget in India is divided into two parts, the revenue budget, and capital budget. The revenue budget deals with the receipt from the taxation, public enterprises etc. and the expenditure incurred for them. The capital budget is the statement of all capital expenditure and the borrowings to meet it. In short, the budget reveals the basic character of the fiscal policy of the government.

Features or characteristics of the budget

The qualities of a good budget are as follows:

  • Budget should be comprehensive and present entire financial position.
  • Budget should be balanced that is receipts and expenditure should be equal.
  • Budget should be flexible, not rigid.
  • Information given in budget should be reliable.
  • Budget should be prepared by some responsible authority.
  • Budget should be prepared for a definite period usually for complete year.
  • Budget should be properly approved before implementation.
Hope wow you will find out the facts and defects of our Indian Budget. So visit regularly to find out more updates...



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