Goa is the best place to visit in summers if you have a budget constraint. I know after reading you might think we are joking but we aren’t. During summers the tickets of Goa are cheap and even hotel rates fall. Though the weather is little hot evenings are pleasant to enjoy. You can even visit casinos or go to such other zones where you won't feel the heat. Thus it's a great option to visit Goa in summer.
Going to Mussoorie can be little tough due to budget issues at that time it is peak season and hotels are quite expensive. So the alternative to this place is Rishikesh. It has quite cheap hotels and a lot of things to explore. You can visit the historical places and the beautiful cafes over there. Don't forget to go for water activities such as River rafting, paragliding etc as it would be fun to do them.
This beautiful hill station is a peaceful place where you can relax and enjoy the serene environment. It has a number of resorts and hotels which provide fair deals to the visitors. You can go for advance booking. Even buses and cabs go regularly so reaching the place won't be an issue. Thus planning a trip to Dharamshala can be fun as you can enjoy doing trekking and other such activities.
When we talk about vacations, we don't count Varanasi as an option as it is a religious place but in reality, it is a lot more. Varanasi has a number of beautiful hotels which provide you with the most royal treatment. They have made a great standard and serve you with the most authentic food. Even watching Ganga Aarti is a delight for the eyes. So for people who think Varanasi is just a religious place then it has lot more.
Planning a trip to Jaipur in summer vacations can be a good option. Though the weather is not pleasant during the day nights are quite cool. Due to this, you will find a lot of cheap deals for hotel and food. Chowki Dhani, Jal Mahal, Hawa Mahal are great places to see. Even shopping at Bapu Bazaar can be fun as it has a lot of Jaipuri stuff available. Don't forget to bargain with the shopkeepers to grab the best deal.
Thus to conclude, these are the best five budget-friendly places to enjoy.