Class 12 Macro Economics Notes · CBSE

Meaning and Objectives of Government Budget

Learn the definition of a government budget as an annual statement of estimated receipts and expenditures, and understand the 7 key objectives governments pursue through budgetary policy.

Last updated: 1 Sep 2026

Notes

What is a Government Budget?

Government Budget

A government budget is an annual statement presenting estimated receipts and expenditures for a fiscal year (April 1st to March 31st). The figures shown are estimates, not actual amounts.

Key Takeaways

The Central Government budget is called the Union Budget. Budgets are also prepared by State and Local governments.
The Finance Minister presents the Union Budget in the Lok Sabha on February 1st each year.
A copy is also laid in the Rajya Sabha. Parliamentary approval is required before April 1st.
The budget reviews the previous year's financial performance and outlines policies for the upcoming fiscal year.

The 7 Objectives

The government budget pursues seven key goals. Click a card to see the example and any related sub-concept.

The allocation function (reallocation of resources) is the most frequently tested objective. Remember: public goods are non-rival and non-excludable.