Types of budget:
1. Balanced budget:

• A budget in which the government plans its expenditures in such a way that all the expenditures can be fully made from the available sources of revenue is called a balanced budget.
• A balanced budget is an ideal as well as a theoretical situation. In reality a balanced budget is impractical.

2. unbalanced budget:
A budget in which the total expenditure is not equal to the total income i.e. either the expenditure, is more or less than the income is called unbalanced budget.

Types of unbalanced budget:
(a) Deficit budget:

• A budget in which the government’s anticipated total expenditure is more than the anticipated total income is called deficit budget.
• Thus, Deficit budget = Anticipated total expenditure > Anticipated total income.
• In present times, government budgets are mostly deficit budgets.

(b) Surplus budget:

• A budget in which the government’s anticipated total expenditure is less than the anticipated total income is called deficit budget.
• Thus, Surplus Budget = Anticipated Expenditure < Anticipated Income.
• In reality most governments do not have a surplus budget.