Budget 2022: Budget is made to raise money in any economy. How much money will be spent everywhere through the budget, it is mentioned. So that the financial condition can be run in a better way.
The budget is the accounting of the entire income and expenditure of the government for a year. All the financial resources of the government are called public finance. Under public finance, all the items of income and expenditure of the central government are included. The budgetary management of this public finance is called Crow Public Budget i.e. general budget.
That is, the way you make a budget for your house every month, how much income will be there, how much money will be spent and how much will be saved in the end? In the same way, the central and state governments also prepare budgets to keep accounts of the income and expenditure of the country and the state.
Article 112 of the Constitution of India deals with budget making. The budget is presented in the Lok Sabha by the Finance Minister of the Central Government, this budget is known as the Union Budget. In the state government, the budget is presented by the state finance minister, it is determined only for that state.
The general budget is divided into several categories. But there are 3 types in particular. Balanced Budget, Surplus Budget and Deficit Budget are of these three. We can divide it into many more categories. For example, it can also be divided into Interim Budget and Full Budget.
This is an ideal budget, which is very difficult to implement, in a balanced budget, different sectors are allocated in equal proportion and the gap between expenditure and receipt is limited, resulting in the difference between the estimated deficit and the actual deficit of the budget. Does not happen.
Meaning, when the figures of total estimated income and total estimated expenditure of the government in a financial year are equal, then it is called balanced or balanced budget. But such a budget does not prove to be effective in times of economic slowdown. This does not solve the problem of unemployment and economic growth. Also, the government is not able to spend much on welfare schemes.
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If the income of the government is more than its expenditure in any one financial year, then it is called surplus budget. This means that the government spends less on the people than the amount received by the government from taxes and interest etc. That is, the amount that the government will spend on the work of public welfare, more amount will be collected from tax. This type of budget is made to control inflation and this helps in reducing the demand for the products. Surplus budget reflects the economic prosperity of the country.
If the estimated expenditure of the government is more than its earnings, then it is called deficit budget. This means that the government is preparing to spend more on welfare schemes than what the government will earn from taxes and other sources. In a developing country like India, this type of budget proves helpful in increasing growth. Deficit budgeting helps to increase demand and accelerate economic growth. But in this, the government meets its expenditure by borrowing from financial institutions and global organizations like the World Bank and the IMF. But its disadvantage is that due to borrowing, the financial burden on the government increases.