The budget is the most important instrument for financial operations in the country. Estimated details of receipts and expenditure of the coming year are imposed by the government through the budget itself. On the basis of the budget itself, it is decided by the government that in the coming financial year, how much total income it is going to get in various items. Through the budget itself, it is estimated by the government that to what extent the government can spend as compared to its receipts. Budget is required by the government for expenditure on various welfare schemes, grants, defense expenditure, various projects and structural development works, salary and other items. The financial system of the country can be operated smoothly only through the budget. The budget is the details of the earnings and expenditure of the upcoming financial year by the government, on the basis of which it is decided by the government that how much it can spend in comparison to its resources. There are two main parts of the budget The budget is decided by the government only on the basis of receipts and expenditure. The entire account of revenue and expenditure of the government is decided by the revenue budget only. Under this, the account of the revenue received by the government and its expenditure is included. The revenue received from two sources is included in the revenue budget It is through the revenue budget that the expenses of the day-to-day functioning of the government and the various facilities provided to the citizens are kept. This type of situation when the government spends more than the income is called revenue deficit. The receipts of the government and the amount paid by the government are included under the capital receipts. Following are the two main points of capital budget Capital Receipts of the Government In this type of receipts, loans taken from the public in the form of bonds loans taken from the Reserve Bank of India and finance received from foreign governments and institutions are included. The budget is presented by the government every year on 1 February. For this preparations are started by the government about 6 months in advance. For this a circular is first issued by the government to various ministries, government departments, union territories of the country to provide necessary data based on the estimates of their financial expenditure to the fact states, on the basis of which the finance is provided to various departments on the basis of the data received. After this, the Finance Minister, Finance Secretary, Expenditure Secretary and Revenue Secretary jointly discuss various aspects of the budget. During the preparation of the budget, the Ministry of Finance receives inputs from the Prime Minister, the Finance Minister and the Deputy Chairman of the Planning Commission and experts in the country.