A budget deficit is an indicator of financial health in which expenditures exceed revenue. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities.

The budget of the central government is prepared by the Finance Minister.

With the exception of development activities, expenditure incurred on administration, defence, interest payment, etc., is called non-plan expenditure.

A budget deficit is an indicator of financial health in which expenditures exceed revenue. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities.

• India has adopted economic planning as a strategy for economic develop­ment. The expenditure incurred on the items relating to five year plans is termed as plan expenditure. Such expen­diture is incurred by the Central Government. A provision is made for such expenditure in the budget of the Central Government. Assistance given by the Central Government to the State Governments and Union Territories for plan purposes also forms part of the plan expenditure. 

A revenue deficit occurs when the net income generated falls short of the projected net income. This happens when the actual amount of revenue  received and/or the actual amount of expenditures do not correspond with budgeted revenue and expenditure figures. 

• Act of selling a part or the whole of shares of selected public sector undertakings (PSU) held by the government to generate capital receipts is called disinvestment.
  
• It is also referred to as 'divestment' or 'divestiture.' In most contexts it refers to government selling partly or fully government owned enterprise.
  

A welfare state is based on the principles of equality of opportunity, equitable distribution of wealth and public responsibility for those unable to avail themselves of the minimal provisions of a good life. Under this system, the welfare of its citizens is the responsibility of the state.

An income tax is a tax that governments impose on financial income generated by all entities within their jurisdiction. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

Budget deficit is an indicator of financial health in which expenditures exceed revenue. It refers to government spending rather than business or individual spending and by increasing the expenditure though it, government tries to achieve economic development.

A progressive tax is a tax in which the tax rate increase as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate

A budget is an estimation of the revenue and expenses over a specified future period of time and is compiled and re-evaluated on a periodic basis. A surplus budget means profits are anticipated, while a balanced budget means that revenues are expected to equal expenses. A deficit budget means expenses will exceed revenues.