What is the meaning of Budget ?

Some measures, such as any changes to the rates of duty on alcohol and tobacco, take effect on Budget day.

The word Budget comes from an old French word ‘bougette’ meaning little bag. It was customary to bring the statement on financial policy to the House of Commons in a leather bag. The modern equivalent of the bag is the red despatch box or Budget box.

The wooden box was first used in 1860 by William Gladstone and was used consecutively until 1965 when Lord Callaghan used a new box.

Chancellors, unlike Ministers at the despatch box, can drink alcohol during the Budget Speech. The last Chancellor to do so was Kenneth Clarke, whose tipple of choice was whisky.

The longest continuous Budget speech was by William Gladstone on 18 April 1853. It lasted four hours and 45 minutes.

With 12 Budget speeches, William Gladstone holds the record for delivering more Budget speeches than any other Chancellor.

A budget very simply put is how much you earn and how much you spend. It is an estimate of income and expenses.

when a family sets up a monthly budget, it means they decide how much they will spend on what. So when parents say that a toy or a dress is not in their budget it means that they had not set aside so much money for buying that thing beforehand.

if for some reason they end up buying that it would just mean that something else, like your crayons, might get cut down from the list of things that can be bought

There are some naysayers who would like to think the Union Budget in India is losing its relevance. The main reason given is that the most important economic and policy decisions are never announced in the Budget. But the curiosity and the anxiety the Union Budget generates is unmatched by any other annual Parliament session. Here is more fodder to fuel to your curiosity

Here are 50 Budget trivia that you never knew.
- The word Budget was derived from the Middle English bowgette, which came from Middle French bougette, which in turn is a diminutive of bouge, meaning a leather bag

While the budget of a family can be easily modified as it is simple, the budget of a country is set for the whole year and is really complex. The government officials, especially the finance minister work out an extremely complicated plan which lists how much money will be spent in each sector of the country – sectors mean things like hospitals, education/school, road development, agriculture etc.

Indian budget is presented in Parliament on a date fixed by the President. The Budget speech of the finance minister is usually divided in two parts. Part A deals with general economic survey of the country while Part B relates to taxation proposals

The finance minister has to be really careful to not neglect or give lesser money to a needy sector or give more money than required to some others.

The Finance Bill seeking to give effect to the Government’s taxation proposals which is introduced in Lok Sabha immediately after the presentation of the General Budget, is taken up for consideration and passing after the Appropriation Bill is passed

The employees printing the Budget papers are kept in complete isolation (quarantine) in the Finance Ministry for one week before the Budget

Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

Finance Minister presents the annual Union Budget in the Parliament usually on the last working day of February

If you don't have enough money to do everything you would like to do, then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you.

The Budget is the most extensive account of Government finances in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year called budgeted estimates

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.

The Ministry of Finance, Planning Commission, Administrative Ministries and the Comptroller & Auditor General are the main players in the declaration of the Union Budget

Once you create your first budget, begin to use it and get a good feel for how it can keep your finances on track, you may want to map out your spending plan or budget for 6 months to a year down the road. By doing this you can easily forecast which months your finances may be tight and which ones you'll have extra money.

Extending your budget out into the future also allows you to forecast how much money you will be able to save for important things like your vacation, a new vehicle, your first home or home renovations, an emergency savings account or your retirement.

Budget was first introduced in India on 7th April, 1860 from East-India Company to British Crown
The first Finance Member, who presented the Budget in India, was James Wilson