The word ‘budget’ is derived from the French word ‘bougett’ or ‘buje’which means a “small leather bag”that contains financial proposals. Usually, monthly budget proposals are made by individuals. Modern business makes annual financial proposals. Government develops national annual budget. State Governments also make annual budgets.
India’s national budget contains estimates of government expenditure and revenue of the Union Government for the coming financial year that starts from 1 April. Usually, the Union budget is presented by the Finance Minister of India in the Parliament on the last day of February.toward facilitate annual decision-making on expenditures, government prepares a budget.
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.
