How Many Types of Budgets are There in India?

Types of Budgets in India

A budget is typically created and re-evaluated on a regular basis, and it is defined as an estimate of income and expenses over a specific future period of time. The Finance Minister of the country prepares the government budget, which is debated in the legislature and approved by the President or Chief Executive.

• Surplus Budget: The budget is referred to as a surplus budget when anticipated revenues for the year exceed anticipated expenses. The surplus budget demonstrates the financial stability of the government. The government can adopt a surplus budget plan in times of excessive inflation, which lowers aggregate demand.
• Balanced Budget: A balanced budget is one in which the anticipated revenue and expenses of the government for the year are equal. Total budget expenditure = Total budget receipts.
• Deficit Budget: A budget is said to be in deficit when anticipated government spending exceeds anticipated revenue. The government’s budgeted expenditures exceed its expected revenue. When expenses exceed revenues, a budget is said to be in deficit. A deficit budget is a liability for the government because it increases debt or reduces the government’s reserve stock.

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