What Is BUDGET And It's Classification? || Balanced Budget & Imbalanced Budget|| Significance Of Budget

What Is BUDGET And It's Classification? || Balanced Budget & Imbalanced Budget|| Significance Of Budget  

 A budget is a detailed account of the probable revenue and expenditure of the government for a particular period usually in a financial year. At the beginning of each financial year, a statement 

 is prepared of the amount of money the government will spend on various sectors or incur the expenditure by collecting money from sources. This statement shows the income account on one side and the expenditure account on the other. The budget records various public welfare schemes and the income and expenditure of infrastructure.

Budget can generally be divided into two parts. namely Completed Budget and Unequal Budget or Balanced Budget. Based on the nature of revenue and expenditure, the budget has two parts, one is the revenue budget and the other is the capital budget. A budget in which income and expenditure are equal is called a balanced budget. In an unbalanced budget, income and expenditure are not equal. Balanced budgets are of two types namely surplus budget and deficit budget. A budget in which income is greater than expenditure is called surplus budget. And the budget in which the expenditure is more than the income is called deficit budget. The budget adopted for running the administrative activities of the country is called revenue budget. This budget shows only the revenue income and administrative expenditure of the government. This budget has two parts, one is the source of income and the other is the expenditure sector. Income section mentions government potential and total income, and from what source this will come is also described. The budget which is made for the development work of the country is called the capital budget. This budget shows the revenue and expenditure account for the annual development programs undertaken by the government. For example, the budget shows the expenditure for development in agriculture industry and communication and transport etc. sectors in a year. Apart from this, the budget also mentions the revenue to be collected from any source for this expenditure. Specifically speaking, the capital budget shows the potential expenditure and expected revenue for the country's annual development programme. The main difference between revenue and capital expenditure is that one does not create wealth and the other does. It shows how much goods and services are consumed in a financial year and conversely how much revenue can be generated or not by the expenditure of a financial year. Budget is the document of development in developing countries. Budgets are accepted in all countries of the world. Budget is an important step for implementation of a development plan. The budget helps the government manage its activities and balances or balances the government's revenue and expenditure.