Budget 2025: Five steps of India's Budget formation explained
Budget 2025: 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 starts approximately six months before the Budget is presented. The Finance Ministry releases Budget Circulars to the relevant ministries and departments, providing essential instructions and guidelines. These circulars are then circulated among disbursing and field officers, who provide information about their department’s financial expenditures, receipts for the current and previous fiscal years, and their financial needs for the upcoming fiscal year.
Accumulation and Authorization of Data:
The data and estimates provided by ground-level officials are first reviewed by senior officials within their departments. After thorough scrutiny, the officials either approve or revise the information. The data is then sent to the relevant ministries for further analysis. Finally, the Finance Ministry examines the data, aligning it with the current economic situation and available resources to assess its feasibility.
Composing the Budget:
After a thorough analysis, the Finance Ministry allocates revenues to various administrative ministries and develops new public welfare
