Budget 2024: Five steps of India's Budget formation explained
Budget 2024: Every year, the Department of Economic Affairs in the Ministry of Finance prepares the Union Budget, which is then presented by the Finance Minister. The Budget which is tabled annually serves as a financial plan for the country and lays out the estimated earnings and expenditures of the government for the upcoming fiscal year.
Here are the five essential steps involved in the formation of the Union Budget:
Initial Processes: The process begins around six months before the Budget is presented. The Finance Ministry issues Budget Circulars to relevant ministries and departments with necessary instructions and guidelines. These circulars are then distributed among disbursing and field officers, who share details about their department's financial expenditures and receipts for the current and past fiscal year, as well as their financial requirements for the upcoming fiscal year.
Accumulation and Authorization of Data: Then the data and estimates provided by ground-level officials are carefully examined by top officials within their departments. After scrutinising the data, the officials either approve or revise accordingly. Then the data and estimates are sent to the concerned ministries for further examination. Finally, the data and estimates make their way to the Finance Ministry, where they are scrutinized and correlated with the current economic state and available resources to determine their feasibility.
Composing the Budget: After thorough analysis, the Finance Ministry allocates revenues to
