Download PROCESS OF BUDGET FORMULATION — The budget represents a comprehensive plan of Government activities expressed in financial terms. On the expenditure side, it shows the Government’s intention to spend money needed to maintain the civil administration and to implement the various economic and social programmes during the forthcoming Fiscal Year. On the receipt side, it sets forth the estimated amounts of money to be collected from Taxation, Borrowings and other sources. Budget is thus the forecast of Government income and expenditure for the ensuing Fiscal Year, which enables the Government to translate its policies in financial terms by providing available resources to the best possible advantage in accordance with the priorities determined in the public interest. Budget, is, therefore, not merely a statement of accounts.