Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024-25 on July 23, 2024 in Parliament. Generally, budget is presented on February 1, but this year due to elections it got delayed and will be presented today.
The Union Budget of India is an annual financial blueprint of the statement presented by the ruling government, outlining its revenue and expenditure for the upcoming fiscal year. Preparing and presenting the Union Budget involves a series of steps and a well-defined sequence of events. Here is a detailed overview of the typical Union Budget-making process in India:
Preparation Phase
The process begins with pre-budget meetings in September or October, where the Finance Minister holds consultations with various stakeholders, including industry representatives, economists, and other experts to gather inputs and suggestions. Several ministries and departments submit their financial requirements to the Ministry of Finance and NITI Aayog.
The Ministry of Finance holds internal consultations with different departments to discuss revenue and expenditure projections. The Revenue Department estimates the income from various sources, including taxes, while the Expenditure Department reviews the spending requirements of different ministries.
Economic Survey
The Economic Survey is prepared by the Chief Economic Advisor and released a day before the Budget. It provides a comprehensive review of the economy over the past year and presents the economic outlook.
The Finance Minister and senior officials of the Ministry of Finance prepare the budget proposals, including tax policies and expenditure plans. The proposals are reviewed and discussed in detail within the government, including consultations with the Prime Minister.
Halwa Ceremony
When the budget is finalized, the 'halwa ritual' initiates the budget's printing. The Union Finance Minister participates in the ceremony and distributes halwa to the ministry's members. Following the event, all of the officials involved in budget preparation are put under lockdown. The officials are isolated from the outside world and kept inside the ministry grounds until the finance minister formally presents the budget to maintain the highest level of secrecy.
Presentation Phase
On Budget Day, the Finance Minister seeks final approval from the Union Cabinet. A special meeting is held in the morning to approve the budget document. The Finance Minister presents the Union Budget in the Parliament. The Budget Speech is divided into two parts: Part A focuses on general economic conditions and policy measures, while Part B details tax proposals and financial allocations.
Along with the Budget Speech, several documents are presented, including the Annual Financial Statement, Demand for Grants, Finance Bill, and various statements on receipts, expenditure, and fiscal policy.
Notably, Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024-25 on July 23, 2024 in Parliament. Generally, budget is presented on February 1, but this year due to elections it got delayed and will be presented today.
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Finance Minister @nsitharaman presents the Budget 2024 in Parliament
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🗓️: 23rd July 2024#Budget2024 #ViksitBharatBudget2024_25Watch on #PIB's 📺
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Post-Presentation Phase
The Budget is discussed in the Parliament. The discussion starts with a general debate on the budget in the Lok Sabha and the Rajya Sabha. The departmental Standing Committees review the budget proposals related to their respective ministries and submit reports with recommendations.
execution
The budget is implemented by various government ministries and departments as per the allocations and policies laid out. The Ministry of Finance monitors the expenditure and revenue collection throughout the fiscal year.
Periodic reviews are conducted to assess the progress of budget implementation. Adjustments and supplementary budgets may be introduced if necessary.
Meanwhile, it is important to note that the Union Budget-making process is crucial for ensuring a balanced approach to managing the country's finances, promoting economic growth, and addressing the needs of various sectors and stakeholders.
