What is Budget
The Budget is an important policy document through which the Government establishes its economic and social priorities and sets the direction of the economy. It reflects the fundamental values underlying the Government's economic policies and objectives. How government policies affect the livelihood of a country's people depends on tax levels, spending priorities, and the impact of policies on investment, employment, and consequently national income. The preparation of the budget draft is the task of the Government (i.e. the executive). However, budgets are best formulated when approved through a consultative process with parliamentarians (i.e. the legislature) and members of civil society.
The word 'budget' is derived from French word "Bougette", which means a small leather bag or pouch. It was used first in England to describe the white leather bag, which held the seal of medieval Court of Exchequer. Later known 'budget' contained proposals of the financial plan of government expenditure. But word budget has now been used in all countries and many languages. The term budget is now commonly understood as a government document. In fact, it is a proposal of proposed expenditure for a given period and proposed means of financing them for the approval of the legislature.