Meaning of Budget
The term ‘Budget‘ has been originated from the French word ‘Bongettee’ which means ‘a small leather bag’. This ‘bag’ contains an economic bill’ which is presented by the Finance Minister in the parliament every year. In other words, the budget is the annual financial statement of the estimated receipts and expenditure Of the government for a given period i.e. for a year.
According to Rene Stourn, ”The budget is a document containing a
preliminary approved plan of public revenue and expenditure.“
According to P. L. Beaulieu, “It is a statement of the estimated receipts and expenses during a fixed period; it is a comparative table giving the amounts Of the receipts to be realized and of the expenses to be incurred.“
According to P. F. Taylor, “Budget is the master financial plan of the government. It brings together estimates of anticipated revenue and proposed
expenditure for the budget years.“
On the basis of the above definition, it can be concluded that’ ‘the budget is the annual financial statement of the estimated receipts and expenditure of the Government of India or ofa State Government in respect ofa financial year. It contains three sets Of figures, the ‘accounts or the actuals’ for the preceding year, ‘the revised estimates’ of the current year, and the ‘budget estimate’ for the following year. The budget in India is divided into two parts, the revenue budget and capital budget. The revenue budget deals with the receipts from taxation, public enterprises, etc. and the expenditure incurred from them. The capital budget is the Statement of all capital expenditure and the borrowings ta meet it. ‘ ‘ In short, the budget reveals the basic character of the fiscal policy of the government.
Features or Characteristics of Budget
The qualities of a good budget are as follows :
- The budget should be comprehensive and present the entire financial position.
- The budget should be balanced i.e. receipts and expenditure.
- Budget should be flexible, not rigid.
- Information given in the budget should be reliable.
- The budget should be prepared by some responsible authority.
- The budget should be prepared for a definite period usually complete year.
- Budget should be properly approved before implementa- tion.