Budget 2022: Know the Concept, Elements and Types of Budget- Watch Video

Publish Date: 18 Jan, 2022 |
 

Budget session 2022: The 2022 budget session of the Parliament will commence on Monday, January 31, 2022. President Ram Nath Kovind will address both houses. The budget session will be held in two parts – the first part of the session would culminate on February 11. After a month-long recess, part two of the session would begin from March 14 and conclude on April 8, the report said.


When will the Union Budget 2022-23 get tabled?

 

On Tuesday, February 1, 2022, the Union Budget will be presented, by Finance Minister Nirmala Sitharaman.

 

 

Types of Budget

Balanced Budget

In a balanced budget, the estimated government expenditure shall be equal to its estimated revenue in a financial year. Many economists proclaim that an expenditure of government should not be higher than its revenue. According to economists, a Balanced Budget is an ideal situation. Attaining this is a crucial task by the government. Notably, a balanced budget does not automatically translate into financial stability in times of deflation or economic depression due to the absence of any scope for extra expenditure. The benefit of this budget is that it prevents wasteful government expenditure. 

 

 

Surplus Budget

In Surplus Budget, the expected revenue surpasses the estimated expenditure in a financial year. This implies that a government's earnings from taxes are greater than the amount spent by a government on public welfare.

A surplus budget indicates the financial stability of a country. the extra funds can be used to pay dues, which reduces the interest payable and is helpful for the economy in the long run. 



Deficit Budget

In a Deficit Budget, the estimated expenditure exceeds the estimated revenue of a government in a financial year. This kind of budget is helpful in times of economic recession and also in boosting the rate of employment. In times of recession, it generates additional demand and boosts economic growth. The disadvantage of this type of budget is that it can lead to excessive expenditures by the government.

 
For more information on the terminology of Budget 2022, watch the video.

 

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