Types of Budget

On the basis of income and expenditure budget is two, these are:

1.      Development budget

2.      Revenue budget

Development budget

Development budget is the annual development budget (ADP) of the government. It is taken up for current and future capital formation. Broadly speaking- development budget launched for mobilizing country’s resources, credits, sources of direct income, developing service sector for aiding the sources of indirect income, developing energy and agriculture sectors. Necessary funds for preparing development budget comes from revenue surplus, revenue, internal resources, loan, external debts and grants, remittances and foreign trade.

Revenue Budget

Revenue budget includes the financing of administrative machinery of the government, defense service, law and orders, Public health, education and other services, it is also called operation and maintenance budget of the government. To maintain the aforesaid recurring expenses, the government imposes different types of taxes for meeting expenses of this budget, some of which are direct expenses including excise duties