A government budget is an annual financial statement showing item wise estimates of expected revenue and anticipated expenditure during a fiscal year. Meanwhile just as your household budget is all about what you earn and spend, similarly the government budget is a statement of its income and expenditure.
Usually in the beginning of every year, government presents before the Lok Sabha an estimate of its receipts and expenditure for the coming financial year. The government plans expenditure according to its objectives and then tries to raise resources to meet the proposed expenditure.
Further through government earns money broadly from
taxes, fees and fines, interest on loans given to states and dividend by public
sector enterprises. Moreover the financial year starts on April 1 and ends on
March 31 of next year. For example, fiscal or budget year 2010-11 is from April
1, 2010 to March 31, 2011. Furthermore, the budget is the most important
information document of the government because government implements its plans
and programs through the budget.
