Budget Speech: All you need to know about the FM's address to Parliament

Here is everything you need to know about what a Budget speech ahead of the Union Budget 2024, the different parts it has, Budget at a Glance, Finance Bill, and more

The Union Finance Minister presents the Union Budget every year in Parliament on February 1, India's Budget Day. In 2024, the interim Budget will be presented on February 1, with the full Budget 2024 to be presented after the General Elections 2024.

In the last election year, 2019, Nirmala Sitharaman's Budget speech was presented on July 5, while the interim Budget speech was presented by then-acting Finance Minister Piyush Goyal on February 1.

The unveiling of the 2024 Union Budget will start with the Budget speech, which entails all major expenses, revenues, schemes of the past year and plans for the upcoming year (financial year 2024-25). The Budget speech is divided into two parts, which are also uploaded to the government web portals following the speech.

 

Here is an overview of how to read and understand the Finance Minister's address ahead of the 2024 national budget.

What is the Budget speech?

The Budget speech is part of the Budget document that is presented by the Union Finance Minister in Parliament on February 1 or later in case of an election year. This is the first glimpse into the Union Budget 2024, that entails an annual financial plan. This document will later be uploaded to the official government webpage, India Budget.

How many parts are there in the Budget speech?

The Budget speech, a pivotal address by the Union Finance Minister in Parliament before the beginning of the financial year, is divided into two key sections: Part A and Part B.

What does Part A of the Budget speech entail?

Part A begins with a comprehensive review of the previous and current economic conditions and provides Budget estimates for the upcoming financial year.

It focuses on the macroeconomic aspects, outlining the country's economic survey, fiscal deficit, current account deficit (CAD), and inflation. It also has detailed expenditure breakdowns for various sectors, the introduction of new schemes, and government priorities for the upcoming financial year.

The finance minister outlines the total funds raised through taxes or borrowing, addressing how the money will be allocated, including specifics on Budget deficit or surplus. A ministry-wise expenditure breakdown is also provided.

What does Part B of the Budget speech entail?

Part B concentrates on the government's tax proposals for the next financial year; these aspects directly impact citizens' finances.

It aligns with the Finance Act, a legal document, and is accompanied by a Memorandum of Explanations, offering a broad background of changes.

This section updates taxpayers on the economy's status, governmental progress, and future policy directions.

The conclusion of Part B unveils taxation proposals or modifications to the existing taxation system. The "Annual Financial Statement" is presented, marking the conclusion of the finance minister's speech.

Where can you watch the Budget speech live?

The Budget 2024 speech can be streamed live from the government's India Budget webpage as well as all major TV news broadcasters.

What is the Budget at a Glance?

The Budget at a Glance serves as a reader-friendly guide to the Union Budget, presenting a condensed overview of key financial data. This document simplifies complex aggregates and estimates, making it more accessible for readers.

The Budget at a Glance presents pictorial account receipts, expenditures, fiscal deficit, revenue deficit, and primary deficit of the Government of India, offering a quick insight into the financial landscape.

Details also include fuel, fertiliser, and food subsidy outlay, transfer of divisible revenues to states and Union territories, and spending on the central sector and centrally sponsored schemes.

What is the difference between Union Budget and Budget at a Glance?

The Union Budget itself is a detailed compilation of the government's spending and revenue, outlining how resources will be allocated. Presented as the Finance Bill and Appropriation Bill under Article 112 of the Constitution, it requires approval by the Lok Sabha before April 1 for implementation in the current financial year.

The Budget at a Glance enhances understanding through visual aids such as charts and graphs, presenting a pictorial representation. This document serves as a primer for key budgeted targets, including tax revenue, non-tax revenue, capital and administrative expenditures, fiscal deficit, and nominal GDP growth.

What is the Finance Bill?

The Budget speech initiates a legislative process requiring approval by the Lok Sabha and Rajya Sabha.

The Finance Bill, once passed, grants legal backing to the Budget and amends related acts like the RBI Act, Income Tax Act, Companies Act, and Banking Regulation Act.