ranjan

A budget is known to be a balanced one when the estimated expenditure is expected to be equal to estimated receipts in a financial year. This type of budget is based on the principle of 'Living within means' and is believed that Govt. expenditure should not exceed the revenue. A balanced budget, though is based on ideal approach to maintain fiscal discipline, but such budget does not ensure of  financial stability at times of depression or deflation. Such budgets donot provide any solution to unemployment and,as such not suitale to less developed countries as it restricts their expenditure and limits their economic growth.Theotrically it is easy to balance the budget,but when comes to its implementation, such balance is hard to achieve.  In India, economy has vast resources like manpower, techniques, minerals  and financial services. The main issue, as I think is to balance and use these resources in such a manner to accelerate the economy. A glance at the following will prove