Government’s revenue and expenses decisions are presented in the budget. The Budget, being a necessary and significant element of planning and development, give the particular development objectives to be pursued and the needed policy direction. They are essential since income and expenses do not take place simultaneously.
Therefore, ‘budget’ has been stated as the annual financial statement of the estimated receipts and proposed expenses of the government in a financial year. The word budget is derived from the French term ‘Bougette’. It means ‘small bag’. As such, the Finance minister of a country bears a bag having abstracts of budget papers whereas presenting the budget in the Parliament or a State Legislature. Governments, both Union and State, made their budget every financial year. Government budget points out the probable income and expenses of the government, taxation measures, the financial policies, investment opportunities, extent of saving, employing of resources, mobilization of capital and so on.
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