What happens when youhave to spend 1000 rupees all by yourself?
Or when you have to arrange a party?
Chances are, you sit down and plan how much you are going to spend on each item.
For example, you decide that the return gifts must be at 100 rs per piece, the cake can cost 800 rupees, and the snacks should cost 700 rs.
Deciding how much money we will spend on each item is called “Budgeting”.
It is an important part of any planning.
The government also has to plan to run the whole country. So once a year, the government also sits down to decide how much money is to be spent on what, and how it will make money. This is called the Union Budget.
The Union Budget is presented by the Finance Minister to the Parliament on February 1st each year. This is why the February session of the Parliament is called the Budget session.
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