A government budget is an annual financial statement showing item wise estimates of

expected revenue and anticipated expenditure during a fiscal year. It is presented by Union
Finance Minister in Lok sabha just before the next financial year.

In India, the budget is meant to be a roadmap to

economic policy, not just a statement of accounts as it is drafted with an ideology of a rapid
and balanced economic growth with equality and social justice.

Objectives of Budget:
(i) Economic growth: To promote rapid and balanced increase in real GDP of the economy.

(ii) Reduction of poverty and unemployment:

Every Indian should be able to meet his basic needs like food, clothing, and housing along
with decent health care and educational facilities.

(iii) Reduction of inequalities: government can influence distribution of income through

levying taxes and granting subsidies.

(iv) Price stability: Government control fluctuations in general price level through taxes,
subsidies and expenditure.

(v) Infrastructure and Railways:

In India , Budget always tries to create a balance in the country and uplift the poor section of
the society which complies with the objective of the Basic structure of the constitution i.e.
welfare state.