What is the Budget?

Suppose you and your friends have to throw a party. You will plan how much you’d like to spend on the decorations, food, and games.

Your parents probably do a similar planning too, because they have to run the house, right? They think of the rent, food, school fees, etc.

The government has to run the country. So, they also need to do the same thing – plan how much they are going to spend on what. In addition, they also need to think about how they will get all that money. The Budget that is made for the whole of India is called the Union Budget. Likewise, all states, districts, etc. also make their own budget.