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Union Budget 2025 preparation: 6 months of planning, ‘lock in’ of officials
Union Budget 2025 will be presented by finance minister Nirmala Sitharaman in the Parliament on February 1.
The Union Budget 2025, which will be presented on February 1, will be the second full budget of the Modi 3.0 government. This year, finance minister Nirmala Sitharaman will be presenting her eighth consecutive budget in the Parliament.
The budget, an annual fiscal financial statement, is meant to define the central government's proposed expenditures and revenues for the upcoming fiscal year, spanning from April 1 to March 31.
The budget document, known as the bahi-khaata since 2019, comprises the government's economic, fiscal, spending and income policies.
How is the Union Budget prepared?
The preparation process of the Union Budget begins about six months before it is presented in the Parliament, normally in the month of September.
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First, a budget circular is issued by the Finance Ministry to all other ministries and departments, with an intention of providing guidance to them to create their revised estimates for the current year and budget estimates for the following year.
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The ministries and departments submit their respective revenue and expenditure receipts, including those central taxes and duties, to the finance ministry as per the circular.
Ministries and departments also submit their Budget Proposals in the form of Provisional Statement of Budget Estimates (SBE).
After this, top government officials hold pre-Budget discussions to decide the net budgetary ceilings of each of the ministries or departments. This meeting, chaired by the Secretary (Expenditure), usually begins around the middle of October.
Consequently, the finance ministry then allocates provisional ceilings of revenues to various departments for their upcoming expenditure.
Any objection to the allocations or revisions are then resolved by the finance ministry, in consultation with the Prime Minister or the Union Cabinet.
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After the finalisation of decisions, the Budget Speech for the finance minister is prepared with inputs from various departments of the finance ministry and the central government.
Notably, the Budget papers are printed on the Finance Ministry's own press and the entry to the Budget Press is restricted in the months before the financial statement is presented.
The final stage of the Budget preparation process is the 'halwa ceremony'. This tradition is performed every year before the 'lock-in' process of officials involved in the Budget preparation begins.
Before the Budget is tabled in the Parliament, the President's recommendations are also sought for introduction and consideration in the Lok Sabha.
After due process and approvals, the Budget is presented in the Lok Sabha on February 1 along with the Budget speech. The bill to bring the said financial proposals to effect is then immediately introduced.
