Hello Rudra,

A budget is a financial plan outlining expected income and expenditures over a period, typically a year. Its primary objectives are to allocate resources effectively, maintain economic stability, and promote growth. For governments, it helps in managing debt, funding public services, and setting economic priorities.

There are three types of budgets:

1. Balanced Budget: When revenues equal expenditures. No borrowing is required, and the economy is generally stable.

2. Unbalanced Budget: When revenues do not equal expenditures, and it can be of two types:

a) Deficit Budget: Expenditures exceed revenues, often leading to borrowing. Used to stimulate growth during economic slowdowns.

b) Surplus Budget: Revenues exceed expenditures, leading to excess funds, which can reduce debt or fund future projects.

A surplus budget is seen as positive, showing financial health, while a deficit budget can be useful for stimulating growth but may lead to increased debt.

I hope this answer helps you. If you have more queries then feel free to share your questions with us we will be happy to assist you.

Thank you and wishing you all the best for your bright future.

Budget outlines the expected income and expenditures over a particular period in monetary terms. Budgeting involves the management of finances as an individual, family, business, or government will do.
Objectives of a Budget are that it helps in tracking income and expenses to ensure financial discipline.It also  helps in setting financial goals, such as saving for a house, retirement, or a child's education.It offers a basis on which informed financial decisions may be made and helps to identify potential sources of financial risk and thus prepare for problems which can occur in future.
Budget types:
Balanced budget : A budget where total revenue equals total expenditure.It indicates financial stability with clever spending. Example can be when a household budget where income in the form of salaries or other sources equals monthly expenses.
Unbalanced Budget
An unbalanced budget is a condition where total government expenditure is more than the total government revenue.In simple words well , the government spends more money than it earns. Surplus budget: A budget in which total revenue exceeds total expenditure.It gives a healthy image of finances and scope to save or invest.
Deficit Budget: It is a situation where the total expenditure crosses the total revenue.This is in a recession era when an increased social welfare bill may make a deficit.