A budget is a quantified, planned course of action over a definitive time period. It is an attempt to estimate inputs and the costs of inputs along with associated outputs and revenues from outputs. Creating a budget is very important to any business entity or country.

Under article 202 of the Constitution, a statement of estimated receipts and expenditure of the State Government has to be laid before Legislature in respect of every financial year which runs from 1st April to 31st March. This statement titled “Annual Financial Statement” is the main Budget document. The Annual Financial Statement shows the receipts and payments of Government under the three parts in which Government accounts are kept” (i) Consolidated Fund, (ii) Contingency Fund, and (iii) Public Account.