What is Budget? Definition, Meaning & Example
A financial plan estimating revenues and expenditures for a government or organization.
TL;DR: A financial plan estimating revenues and expenditures for a government or organization.
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Budget: A financial plan estimating revenues and expenditures for a government or organization.
Explanation
A budget lists expected income and planned spending for a specific period. Government budgets allocate funds to different sectors like education, health, and defense. Budgets ensure financial resources are used efficiently. India's national budget is presented annually in parliament. Budget deficits occur when expenditure exceeds revenue. Budgets guide economic planning and policy.
Example
The Indian government presents an annual budget allocating funds to various ministries and schemes for the fiscal year.
Frequently Asked Questions
What is a budget deficit?
A budget deficit occurs when government expenditure exceeds revenue, requiring borrowing.
Why is a budget important?
A budget ensures financial planning, proper resource allocation, and accountability in spending.
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