Budget 2021: The Union Budget is an annual financial statement of the central government having details of estimated receipts, growth projections, and expenditures. Finance Minister Nirmala Sitharaman will present the budget on February 1, 2021. The budget consists of key components such as the annual financial statement, demand for grants, finance bill, the macroeconomic framework etc. Financial analysts, economists, and the common man are eyeing the budget announcements this year for any signs of relief amid the ongoing COVID-19 crisis. (Also Read: Budget 2021: Here's All You Need To Know About Key Components Of Budget )
Here are the top facts to know about Budget preparation:
1. The budget is prepared through a calculative process between the Ministry of Finance and the spending ministries. The ministry officials and the Finance Minister meet representatives from the private sector, non-governmental organisations as well as other stakeholders to gather and understand the major expectations from the Budget.
2. The Finance Ministry prepares an estimate of how much money is available to spend on the plan schemes. The budget division issues an annual budget circular that comprises comprehensive instructions to all government ministries or the departments for the calculation of the budget estimates.
3. The ministries also provide their estimates to the finance ministry on the amount of money that they expect to earn next year.
4. The President's recommendation is needed to be obtained for the formal introduction and consideration of the Budget in the Lok Sabha. The budget is presented in Lok Sabha after the President's recommendation.