Union Budget 2024 Minister Nirmala Sitharaman will deliver the budget. The government’s goals for the upcoming fiscal year will be disclosed in this budget. Are you aware that everyone interprets the government’s proposed budget differently? Words like surplus budget, deficit budget, and balance budget are employed in these.
On April 1, 2024, the new fiscal year (FY 2024–25) will begin. Planning for the upcoming fiscal year has begun in such a scenario. On February 1, 2024, the government will release information regarding its plans. Another name for it is Union Budget.
This year, there will be Lok Sabha elections. The Union Budget will, therefore, be unveiled following the elections. On February 1, Union Finance Minister Nirmala Sitharaman will present the interim budget in this circumstance.
Every time the government releases the budget, there are differences in people’s interpretations. Terms like surplus, deficit, and balance budgets are employed explicitly in these. We will go into great detail regarding these conditions in this essay.
Balance the budget
A balanced budget exists when the anticipated spending for a given fiscal year equals the government’s revenue. The view held by many economists is that government spending shouldn’t be funded by tax revenue. A balanced budget does not ensure a financial crisis or recession.
Maintaining an equal income and expenditure is a challenging undertaking. A balanced budget’s unique quality is its capacity to guarantee economic stability. Moreover, it also prevents the government from making unreasonable expenditures.
Numerous issues, such as the recession and unemployment, cannot be resolved by a balanced budget. Other than this, less developed nations cannot use it. This is because it limits the potential for economic growth. The balanced budget blocks the government’s expenditures on public welfare.
Excess funds allocation
A budget is considered surplus if government revenue in a given fiscal year exceeds expected government expenditures.
If you think of it this way, a surplus budget is one in which the government’s tax revenue is more than it spends on public welfare.
This kind of budget shows how prosperous the nation’s finances are. This budget can be implemented by the government multiple times to lower inflation.
Budget deficit
Another name for deficit budget is deficit budget. A budget is considered in deficit if government spending in a given fiscal year is more than government revenue.
The budget is most appropriate for an emerging market. It also contributes to the expansion of the budget. Following this budget, the government will raise or enhance the nation’s employment rate. In addition, there has been a rise in the demand for products and services.
The drawback of a deficit budget is another. In this case, the government must borrow money for the benefit of the people, which could be problematic for them. In addition, it encourages the government to increase its reckless spending.
