Union Budget vs State Budget: What's The Difference

By: EjazUlHaqBhat

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The Union Budget 2025 will be presented by Finance Minister Nirmala Sitharaman on February 1

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This will be her eighth consecutive budget, following six annual and two interim budgets

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The Union Budget is the annual financial statement, which provides an estimate of the government's receipts and expenditures for the upcoming year

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It plays a pivotal role in shaping the nation's economic agenda, guiding fiscal policies, and determining the allocation of resources across various sectors

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The Union Budget is prepared through an elaborate process involving various stakeholders and takes several months to complete

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The State Budget, on the other hand, is the "Annual State Government Financial Statement," which includes the estimated receipts and expenditures of a state for every financial year

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States opt for their own presentation formats per practice and convenience

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Also, sources of revenues may vary from state to state, and similar variations can be seen in expenditure profiles

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