Before Union Budget 2020, here are the key differences in types of budgets in India

Union Finance Minister Nirmala Sitharaman is all set to unveil her second 'bahi khata' before Union Budget on February 1, a day after Chief Ecomic viser Krishnamurthy Subramanian tables ecomic survey for fiscal year 2019-2020.

annual budget is defined as a plan which is put forth by government to estimate and calculate expenditures in given fiscal year. This budget is mainly categorised into three s based on comparison of projected spending by government with that of projected income in same year. 

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Balanced Budget

When estimated income of government remains equal to estimated spending, it is called a Balanced Budget. key factor of this of budget is that it indicates financial stability of government. However, it can also signal a limit on scope of welfare activities by government.  

On contrary, when estimated income of government is more or less than estimated expenditure, it is said to be an unbalanced budget. It is furr categorised into Surplus Budget and Deficit Budget. 

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Surplus Budget

When government's estimated income is more than estimated expenditure, n it is said to be a Surplus Budget. In unorned terms, government's revenue becomes more than its expenditure. It is said by ecomists that at time of inflation, a Surplus Budget is beneficial.

Deficit Budget

If government's estimated expenditure is more than estimated income, it becomes a deficit budget. It also means that government is spending more money than it is able to hold in country's ecomy, making revenue less than that of its expenditure. Senior ecomists have suggested that governments across world present this kind of budget with an aim to bridge gap between income and expenditure, and maintain inflation.  

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