What is Budget cycle

The Budget cycle comprises steps beginning in the run-up to the Budget and culminates into its presentation.

 

The preparation of the Budget involves the Ministry of Finance, along with multiple bureaucrats. Before the Budget is prepared, expert advice is also taken from economists and other stakeholders.

 

The cycle includes the following steps — estimating the amount of expenditure and receipts, estimating the fiscal deficit, trying to narrow the fiscal deficit, the presentation of the Budget, and getting the approval from Parliament.

 

First, plans of expenditure of various ministries are looked at. According to the resources available, the amount is allocated for ongoing plans