Budget journey from finance ministry to Lok Sabha
The Union Budget is a complex process that takes months to prepare. It is prepared by the Budget Division of the Union finance ministry’s department of economic affairsbudget Updated: Jan 30, 2019 20:09 IST
The Union Budget is a complex process that takes months to prepare. It is prepared by the Budget Division of the Union finance ministry’s department of economic affairs. The exercise begins in August–September every year. Here is a look at how it is made.
* The budget division issues an annual budget circular to all Union Government ministries and departments containing guidelines on how to prepare budget estimates.
* The ministries and departments prepare and present their estimates for budget allocation after discussing their respective plan schemes with the Central Planning Commission. The Planning Commission depends on the finance ministry to first arrive at the size of the gross budgetary support.
* The ministries also provide the estimates for their revenue receipts in the current financial year and next financial year to the finance ministry.
* The finance minister then examines the proposals received from various ministries and makes necessary changes, if any. The finance minister also consults the prime minister, and briefs the Union cabinet, about the budget.
* The budget division then consolidates all the estimates received and prepares the budget documents.
*The Budget is laid in the Lok Sabha by the finance minister with the Budget speech. It is not discussed in the Lok Sabha on that day.
First Published: Jan 30, 2019 20:07 IST