The new financial year (Financial Year 2024-25) will start from 1 April 2024. In such a situation, planning for the coming financial year has started. The government will give details about its planning on 1 February 2024. It is also called the Union Budget. Lok Sabha elections are going to be held this year. For this reason, the Union Budget will be presented after the elections. This time on February 1, Union Finance Minister Nirmala Sitharaman will present the interim budget.

Many types of budgets are presented by the government. The main one among these is the Union Budget. From common people to big businessmen also focus on this budget. Whereas, the rest of the budget also has its own importance. Come, let us know how many types of budgets are presented by the government.

Balanced budget
Whenever the estimated expenditure for a financial year is equal to the revenue of the government, it is called a balanced budget. This budget has been supported by many economists. He believes that government expenditure should not come from the government's income. Let us tell you that a balanced budget does not guarantee recession or financial instability.

Keeping expenses and income equal is a very challenging task. However, the specialty of a balanced budget is that it ensures economic stability. At the same time, it also avoids irrational expenditure of the government.

A balanced budget has no solution to many problems like recession or unemployment. Apart from this, it is not applicable to less developed countries. This is because it reduces the scope of economic development. A balanced budget stops the public welfare expenditure by the government.

Surplus budget
If the government revenue in a financial year is more than the estimated government expenditure, then that budget is called a surplus budget. Understand it in this way if the amount of income earned from taxes imposed by the government is more than the amount spent by the government on public welfare, then it is called surplus budget.

This type of budget reflects the financial prosperity of the country. The government can implement this budget many times to reduce inflation.

Defect budget
A Deficit Budget is also called a deficit budget. If government expenditure exceeds government revenue in a particular financial year, it is called a deficit budget. This budget is most suitable for a developing economy. This budget also helps in enhancing growth. After this budget, the government focuses on improving or increasing the employment rate in the country. Apart from this, there has also been a rise in demand for goods and services.

There is also the disadvantage of the defect budget. In this, the government has to take loans for public welfare which can cause problems for them. Apart from this, it also encourages increasing irrational expenditure of the government.

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