The process of making the Budget begins somewhere around August-September (Representational)
The Budget, which will be presented in Parliament on February 1, will be a vote on account because India is set for the general elections in April-May. A full-fledged Budget will be presented by the new government later this year.
Finance Minister Nirmala Sitharaman will be presenting her sixth consecutive budget on February 1. The Union Budget outlines the government's fiscal policies, programmes, spending, and income for the upcoming financial year.
While it's presented in the Parliament on February 1, the process of making the Budget begins somewhere around August-September. The Budget document, now presented in the form of bahi-khata since 2019, lays the plan for the government to spend its revenue and funds on developmental projects and other urgent needs.
The Budget preparation starts with the finance ministry issuing circulars to all ministries, departments, states, Union Territories, and autonomous entities. The finance ministry issues communicating instructions or guidelines to these parties to plan and present requests for Budget allocation.
The ministries report their earnings and expenses for the previous year in addition to offering estimates. After receiving requests, top government officials evaluate them and have discussions with ministries and departments about the expenditure.
In the next step, the finance ministry allocates revenues to the various divisions for their impending outlays.
In case of any dissent over the allocation of money, the finance ministry consults with the Union Cabinet or the Prime Minister.
The Department of Economic Affairs and the Department of Revenue also conducts consultations with stakeholders like agriculturists, small business proprietors, and foreign institutional investors to understand their needs.
Various pre-budget meetings are also arranged with different stakeholders to understand their requirements and factor in recommendations. The suggestions and requests are then discussed among top officials, the Finance Minister, and the Prime Minister before confirmation.
A 'halwa ceremony' is conducted before the printing process of the documents for the Budget. The finance minister and the officials involved in the budget-making process participate in this ceremony.
After the dish is served, officials and support staff involved directly with the Budget-making and printing process are required to stay back in the ministry and cut off from the outer world. This is to be done till the Budget is presented in Parliament.
Before tabling the Budget in the Parliament, the President's recommendation is sought under Articles 117(1) and 117(3) for introduction and consideration in the lower house of Parliament.
Following the due nod, the Budget is tabled in the Lok Sabha along with the Budget speech. The Finance Bill, which contains provisions for giving effect to the financial proposals of the government, is introduced immediately after the presentation of the Budget.