Finance is the life blood of a country. It works as the fuel to the engine of governance. No government can function without finance. The greater the finance available the more is the government activities and budget is the tool to make the finance available for various sectors of the economy.
Concept of Budget:
The term budget has been derived from a french word, ‘Bougette” which means a leather bag or wallet. The term was used in its present sense for the first time in Britain to describe the leather bag in which the exchequer carried to the parliament the statement of government needs and resources.
Budget today means a statement of the government’s needs and resources. It is a legal document designed for optimal allocation of scarce resources taking into account socio-economic and political consideration.
Article 112 of Indian constitution refers to budget as Annual Financial Statement which is a statement of receipt and expenditure of the government of india in a financial year.