A budget speech is the government's yearly statement of what it plans to spend, how it will raise money and what taxes will change.
Announcements, not laws
Most tax changes are written into a finance bill. They take effect once parliament passes it, usually from a set date.
Spending plans
The budget allocates money to ministries. Departments then spend it through the year, and actual spending can differ from the plan.
The deficit number
The fiscal deficit shows how much the government expects to borrow because spending exceeds income.
What to look for
For households, the useful parts are usually income-tax slabs, changes to duties on everyday goods and any new schemes.
Sources and corrections. This article draws on the sources listed here. Spotted a mistake? and we will correct it.
- 1 Sample source: background reference
- 2 Sample source: official or primary document
- 3 Sample source: explainer from another publisher (facts only)
