What is the budget?

In simple terms, a national budget (often called the Union Budget or Federal Budget) is a country's financial blueprint for the upcoming year. Just like a household budget, it lists how much money the government expects to earn and how it plans to spend it.
Think of it as the government's "to-do list" with a price tag attached.
1. Where the Money Comes From (Revenue)
A government doesn't "work" for a salary; instead, it collects money from various sources to fund the nation:
Taxes: This is the biggest source. It includes Direct Taxes (like Income tax and Corporate tax) and Indirect Taxes (like GST, Customs duty, or Sales tax).
Non-Tax Revenue: Money earned from government services, interest on loans given to other countries, and dividends from government-owned companies (like national airlines or oil companies).
Borrowings: If the government spends more than it earns, it borrows money from the public or international banks (creating what is known as a Fiscal Deficit).
2. Where the Money Goes (Expenditure)
The government allocates funds to different sectors to keep the country running and growing:
Infrastructure: Building roads, bridges, airports, and power plants.
Social Services: Funding for public schools, healthcare, and welfare programs.
Defense: Salaries for the military and buying equipment.
Interest Payments: Paying back the interest on money borrowed in previous years.
3. The Three Types of Budgets
Depending on the economic situation, a country's budget.