BUDGET

Definition

The budget is a plan made for the future, which is made by estimating the revenue and other income and expenses for the whole year. In which the Financial Minister, after estimating his expenditure before the government, makes several plans for the coming year, and presents it to the public during every financial year. An ideal budget is one in which there is no selfishness. In that budget, good plans have been made for the people, business, government, country, multinational organization, one person, family, group and expenses and investments have been made.

Budget according to constitution

According to Article 112 of the Constitution, the President makes annual financial statements before both the Houses of Parliament during each financial year, which contains the details of the previous year's income / receipts and expenses of the government.

The budget prescribes mainly two items -

Expenditure on accumulated funds of the Government of India.

Required amount to compensate for other expenses incurred for the government's accumulated fund.

Apart from this, details of other and revenue expenses have to be given in the budget.

Objectives of Budget

For every year, the government makes a plan in advance. In which the main purpose of the budget would be to collect the sources of income of the government such as collection of different taxes or taxes, income from revenue, government fees-penalty, dividend, interest on the loan given, etc. and all these income back to the public. is :-

To increase the rate of economic growth.

To remove poverty and unemployment.

Removing inequalities and using income in right schemes.

Maintaining price and economic stability in the market.

To keep funds for all other areas like rail, electricity, finance, food grains, food, banks.

Type of Budget

Generally, the annual budget is made by the department allocated in the finance ministries. The final approval of which is given by the President, which is in relation to both the central and state government. The Railway Budget is prepared separately by the Ministry of Railways. There are mainly two types of budgets.

• Central budget
• Railway budget
• Union Budget

The largest budget presented by the central government is made keeping in mind every class of people. Which is also called the general budget, it has all kinds of provisions which are passed in the form of bills. Every year, new budgets are passed along with new rules and laws. There are many small provisions in the Union Budget, for which the budget is made, such as-

Rail Budget

The Railway Budget is presented in Parliament by the Railway Minister during every financial year. In which for the general public,

Many new trains are announced.

E-Railways facilities for travelers.

Declaring facilities in trains and on platforms.

Booking and checking facility through SMS and net.

These are the two mainly made budgets. Which, as far as possible, is made in February. And is declared during the financial year.

Similarly, the budget of the Center, which is applicable to the whole country. But each state has its own separate budget, in which, it makes provision for the state.

Significance of Budget:

Following are the prevailing statements on the importance of financial administration for government administration:

Kautilya - “All work depends on finance. Therefore, most attention should be paid to the treasury. "

Lloyd George- "Government is finance."

Morsten Marx- "Finance in administration is as ubiquitous as oxygen in the environment."