Meaning : - The Word ‘Budget’ is said to have its origin from the French word Bourget which means ‘a small leather bag’. Budget is a detailed economic statement which includes the details of income (i.e., revenue) and expenditure of the government. A budget is a document which contains estimates of government receipts and expenditure during a financial year (In India financial year runs between April 1 to March 31). Definitions 

(1) According to Rene storm, “ The budget is a document containing a preliminary approval plan of public revenue and expenditure.” 

(2) According to Find lay Shiras, ‘A budget in short includes a statement of the receipts and expenditure of the previous year, an estimate of the receipts and expenditure of the ensuring financial year and proposals as to meet ways and means for meeting a deficit or distributing a surplus, if any.” 

(3) According to P.F. Taylor, “Budget is a matter financial plan of the government. It brings together estimates of anticipated revenue and proposed expenditures for the budget year.” 

Objective of the Budget :- Budget is not only an annual statistical statement of government revenue and expenditure but it also reflects government policies and a set of Objectives which the government has to fulfill through budget. 

Government tries to fulfill the following objectives through buget. 

(1) Encouragement of Economic Development: - The basic objective of the budget is to accelerate the place of economic development in the country. For accelerating the palace of economic development. (I) Government may grant tax rebates to production activities (II) government may develop infrastructure like roads, canals, power, bridges etc. by increasing public expenditure and (III) Government may establish public enterprises. 

(2) Balanced Regional Development: - Through budget, government may promote the development in backward areas for ensuring balanced regional development in the economy. Government may grant tax rebates to these areas may establish public enterprises in these areas and may allocate more funds for infrastructural development in these backward areas. 

(3) Re-distribution of Income and Property: - Budget plays a vital role in reducing the economic disparities in the economy. Many steps can be taken in the budget for reducing the economic disparities in the economy. For example (i) heavy taxes on higher income group, (ii) tax exemption to lower income group, (iii) higher taxes on goods consumed by higher income group. 

(4) Economic Stability : - Economy faces the cycles of boom and depression and the budget aims to put a control on these cycles. Government may adopt ‘Surplus budget’ during boom and ‘deficit budget’ during depression. 

(5) Creation of Employment: - Employment creation is one of the important objectives of government budget. Government may promote labourintensive techniques in public works programmers and may also initiate various employment generation programmers in the economy. 

(6) Management of public enterprises: - Government may establish public enterprises for ensuring social Justice in the economy because the aim of public enterprises is to ensure social welfare and not earning profit.