What is Budget? how many types of Budget present in India? Here we have explained the types of Budget present.
Balanced Budget: Balanced Budget is a budget where receipts are equal to current expenditure. That means that taxes on income and expenditure etc are sufficient to meet payments for goods and services, interest on the national debt etc. A balanced budget is, however, not necessarily an ideal one – economist John Maynard Keynes has shown how budget surpluses and deficits can be used to stimulate or regulate the economy, by affecting the levels of demand and prices.
Revenue Budget: Revenue Budget consists of revenue receipts of government (revenues from tax and other sources) and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the Union government levies. The other receipts consist mainly of interest and dividend on investments made by Government, fees, and other receipts for services rendered by Government.
Receipts Budget: Estimates of receipts included in the Annual Financial Statement are further analyzed in this document. The document also gives details of revenue and capital receipts, the trend of receipts over the years and, more importantly the details of external assistance received by the Government.
Performance Budgets: These budgets are prepared by all ministries dealing with development activities. Also provided are separate appraisal reports in respect of certain major Central Sector Projects/ Programs. A statement is included on the programs and performances of each public sector undertaking under the respective administrative ministry, indicating the in- stalled and utilized capacity, physical targets and achievements, results of operations, and return on capital.
Zero-base budget: Following a considerable period of investigation and examination, zero-base budgeting was adopted in India in 1986 as a technique for determining expenditure budgets. Accordingly the Ministry of Finance instructed all the administrative ministries to review their respective programs and activities in order to prepare expenditure budget estimates based on the principles of zero-base budgeting.