Explained: What Is the Budget?

What is the budget?

A budget is a plan for how to spend money. Suppose you have 100 rupees and decide to spend 50 on food, 30 on a toy, and save 20 rupees. You can make sure you have enough money for what you want while also saving some for the future.

The Indian government creates a financial plan known as the Union Budget every year. It is a detailed plan of how the Indian government plans to spend the money it gets from taxes and other sources in the following year. The government uses this money for important projects such as building roads, schools, and hospitals and helping farmers.

Recently, on 1st February 2023, India’s Finance Minister, Nirmala Sitharaman, presented the Union Budget.

What is the history of the Indian budget?

The first budget in India was presented in 1860 by economist James Wilson of the East India Company. RK Shanmukham Chetty presented the first budget in independent India in 1947. Until 1999, the Union Budget was presented at 5 p.m. on the final working day of February, after which it was changed to 11 a.m.

In 2017, Arun Jaitley presented it on 1st February, and this practice has continued. In 2019, Nirmala Sitharaman became the second woman to present the budget, following Indira Gandhi in 1970-71. Also, the COVID-19 pandemic made the 2021-22 budget paperless, which is still in effect today (instead of paper, an iPad is used now).

What is the objective of presenting the Union budget?

The main goal of the Union Budget is to ensure our country's quick and balanced economic growth. It ensures that resources are properly distributed to benefit the public. The Union Budget also aims to reduce poverty and create jobs. The budget is also used to calculate how much tax a person must pay.

The budget also helps the government keep economic changes such as inflation under control.

What did we learn from this article?

In this article, we learned why the Union Budget is important for our country. The budget can also teach one the value of planning and making good financial decisions. One can also learn how the government spends money on various things that can help shape the country's economy.