Budget:

An estimate of all anticipated revenue and expenditure of the government for the ensuing financial year is called budget. The budget of the state is a document containing a preliminary approved plan of public revenue and expenditure. The Finance Minister, before the parliament, in the case of state legislatures. After the presentation of the budget, there will be a general discussion on it. When the demands have been voted, the finance bill is passed to approve the tax proposals and an appropriation bill is passed to authorize expenditures. The taxes and the expenditures proposed in the budget cannot be given effect to until parliament sanctions them.

Public Revenue:

The Union Government of India has retained many powers it will take major decisions concerning financial matters. As most of the powers are concentrated in the hands of the Central Government, naturally its annual revenue and expenditures are more than the State Governments.

Sources of Public Revenue:

At present the Central Government gets its revenue from three main sources. They are:-

a) Tax Revenues: Taxes are the main sources of revenue to the Government. Tax revenue refers to the revenues collected from taxes. E.g.: Central excise duties, Customs duties

b) Non Tax revenues

c) Capital receipts