Rapid increase in the demand for scientific, business and web applications has led to large scale computation. Cloud computing has emerged as a scalable, reliable, affordable, flexible source for such type of applications. The need to mange such applications require proper load balancing and scheduling techniques. These techniques are different from the algorithms used for distributed computing. This is mainly due to the high scalability and high availability in the cloud environment. The proposed algorithm based on load balancing is presented in this paper. The principle of time scheduling and priority is utilized. The approach implements division of time into multiple slices and allocating each process to particular time interval based on priority. The processor serves the user request within the allotted time slot. At the end of the time slice, the next queued user request is ready for execution. The user exits from the queue upon completion of user request, otherwise user waits for its next slot. The increase in waiting time increases the time slot the user requests gets in the virtual machine. This reduces the overhead of context switching.