Have you ever saved up your pocket money to buy something special, like a toy, a
game, or your favourite snacks?
You might even plan how much to spend now and how much to save for later. That’s called budgeting – and believe it or not, the Indian government does something very similar every year! It’s called the Union Budget.
You may have also heard your parents talking about money – planning for groceries, school fees, electricity bills, or vacations. Just like your family makes money plans at home, the government prepares a big money plan for the entire country.
The Union Budget is usually presented by the Finance Minister in February for the financial year starting from April 1 that year and ending on March 31 next year.
The budget talks about two main things: income (how much money the government will get/earn) and expenditure (how much money it will spend).
Where does the government get/ earn money?
The government needs money to run the country, build things, and help people. Most of
this money comes from taxes, but there are other ways too.
● Taxes: These are small amounts people and businesses pay to the government
when they earn money (like income tax) or spend money (like GST when buying
things).
● Government-Owned Enterprises: The government runs companies in areas
such as energy, telecommunication, and transportation. The profits from these
companies go to the government.
● Royalties from Natural Resources: Companies that use natural resources of
the country such as coal or oil pay the government a fee called a royalty.
● Service Charges and Fees: People also pay fees for services like vehicle
registration, passports, or business licenses.
Where does the government spend money?
The government plans and uses this money to:
● Build schools, hospitals, roads, and bridges
● Support farmers, students, and poor families
● Pay for defence to protect the country
● Invest in technology, environment, and public transport
Why is the Budget Important?
The Union Budget is like a plan for India’s future. It helps the government decide on
new projects like building bullet trains, starting a hyperloop, creating hydroelectric power
plants, and even making sure there’s a playground in every town for kids to have funand stay healthy. The budget also tells people what the government wants to do to
improve schools, hospitals, and jobs.
Before Budget Day, there’s a lot of suspense. Everyone waits to hear what’s coming
next. The Finance Minister’s speech finally reveals the big plans!
Even kids can find it exciting. Next year, you might be looking forward to the budget too!
