A budget may be defined as a financial plan of a nation that serves as the basis for expenditure decision-making and subsequent control of expenditures. It is a financial statement of the government’s planned revenues and expenditures for the fiscal year (April-March).
A budget is, therefore, an estimate of income and expenditure for a future period. “Budgets usually contain financial data for the previous year (or years), estimated figures for the current year, and recommended figures for the coming year, for both expenditures and revenues.”
A budget for the financial year 2009-2010 contains budget estimates of incomes and expenditures for the year 2009-10, revised estimates of incomes and expenditures for the year 2008-09, and actual figures for the year 2007-08.
Important characteristics of a budget are noted below. Firstly, it is a statement of anticipated receipts and expenditures of the public authority. Secondly, it is usually presented every year. It means it possesses periodicity
