India's Union Budget: What You Need to Know

28 Dec 2023 , 12:54 PM

The budget is an annual financial statement presenting government expenditures and revenues for the upcoming fiscal year (April 1st to March 31st).

Presented by the union finance minister in Parliament, it outlines comprehensive economic and fiscal policies for the next fiscal year.

Budget Preparation Process:

1. Fiscal year runs April 1 to March 31, requiring parliamentary approval before April 1.

 2. Budget preparations start six months prior, with deliberations in August-September of the preceding year.

 3. Ministries receive circulars for estimate preparation, engage in consultations with Niti Aayog, and submit approved data to the finance ministry.

 4. Finance ministry allocates revenues to departments; disputes go to the prime minister or Union cabinet for resolution.

 5. Finance minister conducts pre-budget meetings, discussing proposals and demands with stakeholders and finalizing decisions with the prime minister.

 6. ‘Halwa ceremony’ precedes the budget presentation, initiating a ‘lock-in’ for ministry staff to prevent leaks until the financial statement is tabled.

  7. Budget document is presented in the Lok Sabha on February 1, a shift from the previous practice before 2017 when it occurred on the last day of February.

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