 "budget 2023")
Budget 2024: The Indian Union Budget is prepared by the Ministry of Finance (MoF) in consultation with NITI Aayog and other concerned ministries. It takes months to execute these tasks, and the Budget-making activity normally begins in August-September, which is six months before the date of its presentation. Also, the Budget division of the Department of Economic Affairs (DEA) in the finance ministry is the nodal body responsible for producing the Budget.
After the presentation, the Budget needs to be passed by both houses of Parliament before the start of the fiscal year, which is April 1. The finance minister presents the Budget on February 1. Nirmala Sitharaman will present her sixth straight Union Budget for fiscal year 2024–25 (April 2024 to March 2025).
Here's a glimpse at how our nation's Budget is prepared:
Issue of circular
The finance ministry issues a circular to all the ministries, states, Union territories, and autonomous bodies asking them to prepare estimates for the upcoming fiscal year. This circular consists of skeleton forms along with requisite guidelines based on which ministries present their demands.
Estimates of revenue and expenditure
The finance ministry examines the data and compares the estimates of revenue and expenditure to calculate the overall Budget deficit. The Centre then consults the Chief Economic Advisor (CEO) and determines the optimal level of borrowing required by the government to meet the deficit.
Revenue allocation
After considering all recommendations, the finance minister decides on revenue allocations to various departments for their future expenditures. If there is a disagreement over the allocation of funds, the finance ministry consults with the Union Cabinet or the prime minister before proceeding.
Pre-Budget meeting
The finance minister then holds pre-Budget meetings with various stakeholders to know about their proposals and demands. These stakeholders include state representatives, bankers, agriculturists, economists, and trade unions.
Final call on demands
After the pre-Budget consultations are completed, the finance minister takes the final call on demands, which are also discussed with the prime minister before finalisation.
Halwa ceremony and printing of the Budget
To mark the final stage of the Union Budget-making process, the government follows an annual tradition of hosting a halwa ceremony. The ceremony marks the beginning of the printing of Budget documents after 'halwa' is served to the entire staff in the finance ministry. Last year, sweets were provided to core staff due to "lock-in" at their workplace instead of the Halwa ceremony because of the Covid-19 pandemic and health safety concerns.
To maintain the secrecy of the Budget, there is a "lock-in" of the officials involved in making the Budget.
The Budget Press, situated inside North Block, houses all officials in the period leading up to the presentation of the Union Budget. These officers and staff only come out of the North Block after the finance minister presents the Union Budget.
Budget presentation
Finally, the finance minister presents the Budget in the Lok Sabha. Until 2016, it was presented on the last day of February. However, since 2017, the Budget has been presented annually on February 1.
The general public and Members of Parliament (MPs) can easily access all Budget-related documents on the "Union Budget Mobile App", which was launched by Finance Minister Nirmala Sitharaman on January 23 2021.
