Finance, Forex and Investments

Why is India finance budget necessary?

Public Comments

1. Really good question!!!! Here is my answer to your question. Every one is having their family.You and me are not exception.They have their own life to live.You may live luxury life and my self may live simple life.Every family is having their own problem to handle.They need money to take care their lives and solve obstacle comes in their lives. For example: Food expenses,child education expenses,marriage etc So earning member of family earns to satisfy his/her family needs and do some saving also.They decide particular amount of money on each time period say month to run their family. This amount is called BUDGET of one family. This budget is use to satisfy all needs of one famliy. They arrive at certain budget based on their past experience of routine expenses occured in their family. Same way our country is one FAMILY.Our country has its own problem to take care. Each year, govt decide budget for our country for defecne,infrastructurte,welfare etc Amount of budget comes from taxes which govt has received from our countries citizens. Hope you got it now why we need budget? Without budget we can not decide how much we have and how much we need to spend? So budget is mechanism to ascertain spending on people in one particular country. Regards, James