What is budget?

A budget is an itemized summary of likely income and expenses for a given

period.
It is simply balancing your expenses with your income. If they don't balance
and you spend more than you make, you will have a problem. Many people
don't realize that they spend more
than they earn and slowly sink deeper into debt every year.
Creating this budget allows you to determine in advance whether you will
have enough money to do the things you need to do or would like to do.
If you don't have enough money to do everything you would like to do, then
you can use this planning process to prioritize your spending and focus your
money on the things that are most important to you.

Advantages of preparing a budget

Gives early warning for potential problems-You get to look at big picture
and so you can see potential problems in advance and hence can make
adjustments beforehand.
Helps you organize your spending and savings-This is because it divides
your money into expenditure and savings thus making you aware which
category of expenditure takes which portion of your money. So, it becomes
easy for you to make adjustments.
Gives you control over your money-It prevents you from overspending
especially when you have limited resources. So, it keeps you focused on your
money goals.
Makes you aware of what is going on with your money- A budget
enables you to know what you can afford, take advantage of buying and
investing opportunities and plan to lower your debt.
enables you to save costs as it allows you to plan to set aside money for
emergency costs. it ensures that you will always have enough money
for the things you need and the things that are important to you.

Good things in the budget of 2017-2018

Farmers

Dairy Processing and Infrastructure Development Fund to be set up in NABARD with

a corpus of ` 2000 crores and will be increased to ` 8000 crores over 3 years.

Rural population

Aim to bring one crore households out of poverty and to make 50,000 Gram
Panchayats poverty free by 2019, the 150th birth anniversary of Gandhiji.
It is proposed to provide safe drinking water to over 28,000 arsenic and
fluoride affected habitations in the next four years.
 For imparting new skills to people in rural areas, mason training will be
provided to 5 lakh persons by 2022.

Youth

SWAYAM platform, leveraging IT, to be launched with at least 350 online

courses. This would enable students to virtually attend courses taught by the
best faculty.
A scheme for creating employment in the leather and footwear industries
along the lines in Textiles Sector to be launched.

Poor and underprivileged

For senior citizens, Aadhar based Smart Cards containing their health details
will be introduced.
Government has prepared an action plan to eliminate Kala-Azar and Filariasis
by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025 is also
targeted.

Infrastructure

For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a
corpus of ` 1 lakh crores over a period of 5 years
Unmanned level crossings on Broad Gauge lines will be eliminated by 2020

Financial Sector

An expert committee will be constituted to study and promote creation of an

operational and legal framework to integrate spot market and derivatives
market in the agricultural sector, for commodities trading. e- NAM to be an
integral part of the framework.
Propose to create an integrated public sector oil major which will be able to
match the performance of international and domestic private sector oil and
gas companies

Digital economy

Use of IT in taxation for reducing human interface.

Public Service

A Centralized Defence Travel System has been developed through which travel
tickets can be booked online by our soldiers and officers

Train travel set to get cheaper with withdrawal of service charge on tickets
bought online through IRCTC.
 No transaction above ` 3 lakh would be permitted in cash subject to certain
exceptions.
RAPID (Revenue, Accountability, Probity, Information and Digitisation)-
Enforcing greater accountability of officers of Tax Department for specific act
of commission and omission.
Existing rate of taxation for individual assesses between income of `2.5 lakhs
to 5 lakhs reduced to 5% from the present rate of 10%