Government Budget(Indian), objective, type of Budget

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Government Budget :-

Government budget is the annual statement showing item wise estimates of receipts and payments during a fiscal year.

Fiscal year is from 1st April to 31th March

• Budget of Central Government is known as Union Budget.

• In India, Budget is presented in the parliament on such a day President may direct.

• If President not give a day to present budget by convention, it is presented on the last working day of February.

• The receipts and payments shown in the budget are not the actual figures, but they are the estimated value of coming Fiscal year. 


Objectives of Government Budget :-

(a)- Reallocation of Resources  (huge investment but low profit)

(b)- Redistribution Activities  (taxation , subsidies)

(c)- Management of Public Enterprise

(d)- Stabilizing Economic Activities

(e)- Economic Growth


Types of Government Budget :-

(a)- Balanced Budget   (Expenditure = Receipts)

(b)- Surplus Budget     (Expenditure ‹  Receipts)

(c)- Deficit Budget        (Expenditure › Receipts)


Budget Deficit :-

(a)- Revenue Deficit
(b)- Fiscal Deficit
(c)-  Primary Deficit



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