Last Update: January 25, 2023, 12:57 pm IST
A balanced budget is one in which the expected revenue for the financial year by the government is equal to the actual expenditure.
When the revenue and expenditure of the central government are equal, it is called a balanced budget.
Finance Minister Nirmala Sitharaman will present India’s Union Budget for 2023- 2024 in Parliament on 1 February. Various experts from across the country have presented their suggestions and recommendations for Budget 2023. on economic conditions? If not, then News18 Class will give you more information about the three types of Union Budgets in India.
balanced budget
A balanced budget is one in which the expected revenue for the financial year by the government is equal to the actual expenditure. In this budget, the total budget expenditure is equal to the total budget receipts. For example, if budget expenditure totals 5 lakh crore and budget revenue totals 5 lakh crore, then the budget is said to be balanced.
deficit budget
When anticipated government spending exceeds anticipated revenue for a fiscal year, it results in a deficit budget. The budget is said to be in deficit if expenditure exceeds revenue. Surpluses from public debt or already accumulated reserves are generally used to cover the deficit. Since it increases the debt or reduces the government’s reserves, a deficit budget creates a liability for the government. Deficit budgeting is an important tool for financing anticipated progress in developing countries and increasing stability in developed countries.
surplus budget
A surplus budget is one in which the government’s expected income or revenue exceeds its expected expenditure. If the government’s long-term fiscal planning is credible and successful, the government may have a surplus budget if it has excess funds. A surplus budget can be used by the government as a weapon to reduce aggregate demand and reduce inflation when it is too high.
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