Budget: Types of Budgeting in India 

In India, the year is taken into account from 1st April to 31st March. So, a statement of calculable expenditures and receipts of the government in India for a year is named budget. An introduction to a budget helps you perceive all the outlay and expenditure by the government in an exceedingly financial year.
We have a union budget in India wherever an exact quantity of cash is allotted to the varied sectors. There are two kinds of accounts during this, revenue account and capital account. Also, the revenue account includes revenue receipt and revenue expenditure.

Furthermore, in an exceeding revenue receipt, there's a tax receipt and a non-tax receipt. A tax receipt is that the one that the govt. Gets through direct and taxation. Whereas in non-tax receipt, the government gets its revenue from fees, interests, fines, royalty, grants, dividends of PSUs, etc.
Also, in revenue expenditure, there are development and non-development expenses. The repair work finished existing assets is termed below revenue expenditure. At the same time, the expenses below law and order, defence, salaries are classified into non-development expenses.

While in capital receipts, the yield from the withdrawal sales through government assets, loan recovery, borrowings, loans, etc., are enclosed. Thus, the full receipt could be a summation of revenue receipts and capital receipts. At the same time, the total expense could be a summation of capital expenses and revenue expenses.

Types of Budgeting

1. incremental budgeting
Incremental budgeting takes last year’s actual figures and adds or subtracts a proportion to get the current year’s budget. It is the foremost common technique of budgeting because it is easy and straightforward to know. Progressive budgeting is acceptable to use if the first value drivers don't amend from year to year. However, there are some issues with victimisation the method:
It is seemingly to bear on inefficiencies. as an example, if a manager is aware that there's a chance to grow his budget by 100% per annum, he can merely take that chance to realise an even bigger budget, whereas not putting effort into seeking ways in which to cut prices or economise.
It is seemingly to end in fund slack. As an example, a manager may overdraw the dimensions of the budget that the team desires. Thus, it seems that the team is usually below budget.

2. Activity-based budgeting
Activity-based budgeting could be a top-down budgeting approach that determines the number of inputs needed to support the targets or outputs set by the corporate. As an example, an organisation sets an output target of $100 million in revenues.

3. worth proposition budgeting
Value proposition budgeting is admittedly an outlook regarding ensuring that everything enclosed within the budget delivers worth for the business. Worth proposition budgeting aims to avoid supererogatory expenditures – though it's not as precisely aimed toward that goal as our final budgeting possibility, zero-based budgeting.

4. Zero-based budgeting
As one of the foremost ordinarily used budgeting methods, zero-based budgeting starts with the idea that each department's budgets are zero and should be remodelled from scratch. Managers should be ready to justify every single expense. No expenditures are mechanically “okayed”. Zero-based budgeting is extremely tighighvoiding, and every expenditure that isn't thought about was entirely essential to the company’s roaring (profitable) operation. This sort of bottom-up budgeting is often highly effective thanks to “shake things up”.
The zero-based approach is sweet to use once there's an imperative want for value containment, as an example, in an exceedingly state of affairs wherever an organisation goes through a monetary restructuring or a significant economic or market downswing that needs it to reduce the budget dramatically.

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