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Budget 2025: Budget deficit is common in most countries including India. The budget of losses has been presented in India since the independence of the country. The main reason behind this is the provision of more expenditure for the government’s economic policies and public welfare schemes.
What is the budget budget
The budget of deficit is the situation when the government’s income is less than its spending scheme. This is called ‘Finance of Loss’. When the government requires more funds to invest in education, health, infrastructure and other welfare schemes, it presents such a budget.
In the budget of 2022-23 in India, the revenue deficit was estimated to be 6.4 percent of the country’s GDP, while in 2021-22 the revised estimate was 6.9 %. The growth rate of the Indian economy is estimated to be 6.4 percent in FY 2024-25. These figures show that there is a big difference between the country’s income and expenditure, which presents the challenge to balance the economy.
First budget after independence
After independence, India’s first budget was introduced from 15 August 1947 to 31 March 1948. There was a provision for revenue receipt of Rs 171 crore and estimated expenditure of Rs 197 crore in this budget. Since then, the budget of deficit has remained a part of India’s financial strategy.
Loss of budget advantages
The budget of deficit helps in accelerating many public welfare schemes and economic development. Development of infrastructure, employment generation and spending on welfare schemes for poor sections are the priority of the government. However, at the same time the risk of increasing debt also increases. Taking more loans puts pressure on the financial stability of the country, which can cause an increase in inflation and interest rates.
Also read:
Budget 2025: What does the word budget mean? Why is there no mention in the constitution
