The Process of Creating The Indian Budget
The Indian Budget is the government’s financial plan for the upcoming fiscal year. It details the government’s expected revenue and expenditure, and lays out its priorities for spending and taxation. The budget is an important tool for managing the country’s finances and guiding economic growth.
The process of creating the Indian Budget is a long and complex one, involving several key players and stages. Here is an overview of how the Indian Budget is made.
- Preparation of the Draft Budget: The Ministry of Finance starts the budget-making process by preparing a draft budget. The draft budget is based on the expected revenue and expenditure for the upcoming fiscal year, as well as the government’s priorities and goals.
- Consultation with Other Departments: Once the draft budget is ready, the Ministry of Finance consults with other departments and agencies for their inputs and budget proposals. This helps ensure that the budget reflects the needs and priorities of all relevant stakeholders.
- Approval by the Cabinet: After consultations with other departments, the draft budget is presented to the Cabinet for approval. The Cabinet reviews the budget and makes any necessary changes.
- Presentation in Parliament: Once the Cabinet approves the budget, it is presented in Parliament by the Union Finance Minister. The Budget speech is usually delivered in late February or early March, and is an important event in India’s political calendar.
- Discussion and Debate in Parliament: After the Budget is presented in Parliament, it is open for discussion and debate by the members of both the Lok Sabha and Rajya Sabha. Members of Parliament (MPs) use this opportunity to raise questions, offer suggestions, and highlight their concerns about the budget.
- Examination by Parliament Committees: After the Budget is discussed and debated in Parliament, relevant committees examine it in detail and make recommendations. These committees may make changes to the budget, based on their findings and recommendations.
- Passage of the Budget: Once the relevant committees have completed their examination of the budget, it is passed by Parliament. The Budget becomes law once it is passed, and the government is obligated to implement it.
- Implementation of the Budget: After the Budget is passed, it is implemented by the various departments and agencies of the government. Each department is responsible for implementing its portion of the budget, and for ensuring that the money is spent in accordance with the budget plan.
In conclusion, the Indian Budget is a comprehensive financial plan that outlines the government’s expected revenue and expenditure for the upcoming fiscal year.
The budget-making process is a long and complex one, involving several key players and stages, including the Ministry of Finance, other departments and agencies, the Cabinet, Parliament, and Parliament committees.
The Budget is an important tool for managing the country’s finances and guiding economic growth, and is closely watched by policymakers, business leaders, and citizens alike.
Economic Survey In India
The process of conducting the Economic Survey in India involves the following steps:
- Data Collection: Data is collected from various government agencies and independent sources such as the Reserve Bank of India, the Central Statistical Organization, and the National Sample Survey Office.
- Analysis: The collected data is analyzed to evaluate the performance of various sectors of the economy, such as agriculture, industry, and services.
- Preparation of Draft: Based on the analysis, a draft of the Economic Survey is prepared by the Ministry of Finance.
- Review and Consultation: The draft is reviewed by the Chief Economic Advisor and other experts, and is also subject to consultation with various stakeholders, including industry associations and economists.
- Finalization: Based on the review and consultation, the final version of the Economic Survey is prepared and presented to the Parliament.
- Release: The Economic Survey is released publicly and is widely covered in the media. It serves as a reference for policymakers, economists, and businesses, and provides a comprehensive overview of the state of the Indian economy.
Key People Involved Currently In The Budget Making Process
- Expenditure Secretary – TV Somanathan
- Sanjay Malhotra – Union revenue secretary
- Chief Economic Advisor – V Anantha Nageswaran
- PM – Narendra Modi
- Finance Minister – Nirmala Sitaraman