This chapter deals with the different budget allocation techniques used by various nations and particularly the Republic of India. Different countries used different methods of funds distributed among their several sectors. To allocate money in the budget different countries pay heed over Defense, Education, and Health Care. They provide a considerable sum of money to these three areas. Except this government employs relatively little amounts of funds in other departments. For budget allocation governments of different countries use different methods like Ranking & Selection, Incremental Budget, and Pareto Optimal. The government aims for overall better development in all aspects. The objective of this chapter is to put forward different budget allocation techniques in front of readers so that one can understand the pros and cons of a particular method and can able to use a technique for a complete budgeting problem.

In this chapter, a detailed study has been conducted on the available literature and the work done by the different researchers. As per the available literature, many ways are available to allocate budget. The famous traditional budgeting approaches are: Zero-based Budgeting, Ordinary Least Squares Technique (OLST), and Two-stage Least Squares (2SLST). Along with the traditional approaches, Evolutionary Approach (EA) such as Optimal Computing Budget Allocation (OCBA) and Genetic Algorithm (GA) are most popular budget allocation methods in research community nowadays. So, we will discuss the glint of different observations presented in research papers. After in-depth analysis, we conclude that use of traditional budget allocation methods along with the Evolutionary Budget Allocation methods can provide a better budget allocation model and it will be exemplary for the government to make the budget for the welfare of the country. Lots of research papers have been referred as it is cited in the reference section.

This chapter deals with the different stochastic model which would help us to allocate the budget to a different department as well as schemes. For the allocation of the budget, a mathematical framework is developed using a combination of traditional mathematical model and evolutionary computing based model. A combination of Optimal Computing Budget Allocation (OCBA), Genetic Algorithm (GA) and Equal Allocation (EA) is considered for generating an efficient budgeting model. We have applied soft computing approach to optimize budget allocation in different schemes through which the funds are allocated proficiently.

This chapter deals with the result section of budget allocation and optimization of the Secondary Education department of the Republic of India which has many schemes. Plot wise prediction is carried out and compared with the available reports to analyze the accuracy and effectiveness. The output shows that, the developed model has a great potential to allocate and optimize funds and also provides a high agreement for validation of the said mathematical model for budget allocation.