What is the Budget?

What happens when you have to spend 1000 rupees all by yourself? Or arrange a party?

Chances are, you sit down and plan how much you are going to spend on each item. For example, you decide that the return gifts must be at 100 rs per piece, the cake can cost 800 rupees, and the snacks should cost 700 rs.

Deciding how much money we will spend on each item is called “Budgeting”. It is an important part of any planning. 

What does Budget mean? 

The government also has to plan to run the whole country. So, once a year, the government also sits down to decide how much money is to be spent on what, and how it will make money. This is called the Union Budget.

When is a Budget called an Interim Budget? 

In 2019, since elections were due within one year, the budget was called the “interim budget” – because this was only an interim budget until the next government is formed.