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Budget cycle

About Budget cycle

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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 and new plans which can be taken up.
 
Some non-plan expenditure, such as subsidies and wage payments, is also taken into account.
 
Next, revenue payments in the form of capital and current receipts are estimated. Money from disinvestment or repayment of government loans falls into the category of capital receipts. Income from taxes, dividends from state-run companies, etc, fall under the category of revenue receipts.
 
After these amounts are estimated, expenditure and receipt under each head are matched to see the shortfall, also known as deficit. This is deliberated upon and the government then decides how much it shall borrow to be able to meet the same.
 
The government decides on the amount of borrowing after considering what amount of deficit it would like to maintain.
 
Then, the government presents the Budget, which comes into effect on April 1, the beginning of a new financial year, after being approved by the Lok Sabha and signed by the President. The Rajya Sabha can give comments on the same.

Latest Updates on Budget cycle

In her budget speech, FM had proposed refund of 95% of amount forfeited on account of non-performance of contract due to Covid

Updated On: 06 Feb 2023 | 9:21 PM IST

Budget 2023-24 adopted seven priorities or Saptarishi, one of which is building focus on green growth

Updated On: 03 Feb 2023 | 6:15 AM IST

Investors in the automobiles sector are clearly betting on big ticket consumption improving, including commercial vehicles

Updated On: 03 Feb 2023 | 6:10 AM IST

Presently, no TDS is required on interest payable in the case of listed dematerialised securities

Updated On: 03 Feb 2023 | 6:10 AM IST

Here are 10 stocks across sectors that are expected to gain the most from the various proposals

Updated On: 03 Feb 2023 | 6:05 AM IST

The government has ring-fenced financial outlays for various social sectors, and this is reflected in nominal increases and efforts to make them more effective

Updated On: 03 Feb 2023 | 6:00 AM IST

In an interview to PTI, Malhotra said the government does not have any specific timeline to make the new regime mandatory for taxpayers

Updated On: 02 Feb 2023 | 8:47 PM IST

Some of the countries whose allocation has been reduced under this head include Bhutan, Afghanistan and Mauritius

Updated On: 02 Feb 2023 | 8:42 PM IST

The Smart Cities Mission was allotted Rs 8,000 crore as against Rs 8,800 crore in the revised estimates for the last fiscal

Updated On: 01 Feb 2023 | 11:22 PM IST

He said the budget stands firm on the foundation laid by the previous budgets presented by the Narendra Modi government

Updated On: 01 Feb 2023 | 11:08 PM IST

The allocation to the government's autonomous body, Prasar Bharati, has been increased to Rs 2,808.36 crore from Rs 2,764.51 crore allotted to it in the last fiscal

Updated On: 01 Feb 2023 | 10:55 PM IST

The chamber which has been seeking relief to the MSMEs expressed gratitude to the government for giving several incentives to the small businesses and the start-ups

Updated On: 01 Feb 2023 | 10:48 PM IST

The Budget marked an increase in the allotment for Ex-Servicemen Contributory Health Scheme (ECHS) with Budget Estimates of Rs 5,431.56 crore in FY 2023-24 as against Rs 3,582.51 crore in FY 2022-23

Updated On: 01 Feb 2023 | 10:37 PM IST

The Budget allocated Rs 3,113.36 crore to the ministry, against Rs 10,667 crore in 2022-23, which was later revised to Rs 9,363.70 crore

Updated On: 01 Feb 2023 | 10:31 PM IST

The Department of Atomic Energy has been allocated Rs 25,078.49 crore which is lower than Rs 25,965.67 crore it had received in the revised estimates in the 2022-23 fiscal

Updated On: 01 Feb 2023 | 10:28 PM IST

According to Union Budget documents, an individual will have to pay tax on the maturity amount of life insurance policies where the aggregate annual premium exceeds Rs 5 lakh

Updated On: 01 Feb 2023 | 9:18 PM IST

For the next fiscal beginning April 1, the miscellaneous capital receipts have been pegged at Rs 61,000 crore, including Rs 51,000 crore from disinvestment

Updated On: 01 Feb 2023 | 9:11 PM IST

Rijiju has termed the allocation as "unprecedented", which will create paperless courts for faster delivery of justice

Updated On: 01 Feb 2023 | 9:00 PM IST

The budget also has penciled in a lower revenue growth forecast given the most-likely fall in nominal GDP from 15.5 per cent this fiscal to about 10 per cent next year

Updated On: 01 Feb 2023 | 8:53 PM IST

ISRO plans to launch Chandrayaan-3, India's third lunar mission, in July using the Launch Vehicle Mark-3

Updated On: 01 Feb 2023 | 8:50 PM IST