If a budget is defeated in the legislature of a state, it means that the majority of the legislators did not approve the budget proposal. In such a situation, option 1, where only the Finance Minister has to resign, is not the correct choice because the defeat of the budget is not solely the responsibility of the Finance Minister. Similarly, option 2, which suggests that the Finance Minister concerned has to be suspended, is also incorrect as suspension is not the appropriate action in this scenario.

Option 3 is the correct answer because when a budget is defeated, it reflects a lack of confidence in the council of Ministers along with the Chief Minister who are responsible for drafting and presenting the budget. In such cases, they are required to resign to reflect the loss of confidence by the legislature.

Option 4, suggesting that reelection has to be ordered, is not the correct choice as the defeat of a budget does not automatically require a new election.