Budget and its types

Budget
       Budget is the estimation of income and expenditure. Budget is prepared for proper and systematic development.

Budget represent in 3 ways
              1. Income> expenditure= surplus
              2. Income= expenditure= balance budget      
              3. Income< expenditure = deficit budget
         Note- India's budget is always deficit because India is a developing country.

Sources of Money for Government

1. Loan from RBI 
2. Government securities 
3. Loan from Asian development Bank and world bank

Categories of Budget

1. Gender Budget 
2. Zero base Budget 
3. Outcome Budget
4. Traditional Budget 
5. Performance Budget 
6. Interim Budget

• Gender Budget- When budget is female oriented is called gender budget. 
• Zero base Budget- When government form budget without considering last years budget performance that is called zero base budget. 
• Outcome Budget- When budget is result oriented(means particular sector growth related). 
• Traditional Budget- When income estimated and expenditure fixed is called Traditional budget.
• Performance Budget- When government form budget with considering last year budget.
• Interim Budget- Year 2014-15 budget is interim budget. When government is not able to prepare budget for full year is called interim budget. Example in election times , in wars. Interim Budget is for 4 months.

Note- First time budget was represented by Robert woolpoul in 1773 in U.K. Bugat is a french word for Budget.

• In India under Constitution Article 112 government present Union Budget. 
• In constitution of India annual financial statement is mentioned not budget. 
• State Legislative Assemble present their budget by article 202.
• India's First Budget was presented by James Wilson in 1860 when lord canning is viceroy of India. 

In 1921 Edward committee recommend to divide budget in two parts 

1. Rail Budget
2. Union Budget 

• First Independent India's Budget presented by Mr. R. K kshadmugam chatti (it is first interim budget) in November 1947. 
• First Republic India's Budget presented byMr. John Mathei.