All eyes are on finance minister Nirmala Sitharaman ahead of the annual February 1 Union Budget. The upcoming budget, however, will be an ‘interim’ one; this is because 2024 is a general election year, with the national polls slated for April-May. The incoming government will present a full budget later in the year.
Here are some FAQs on Union budget:
What is a Union budget?
It is an annual financial statement that lays out the government’s proposed expenditures and revenues for the upcoming fiscal year, which begins on April 1st of that year, and ends on March 31st of the following year.
It can also be described as a ‘comprehensive document that outlines the government’s economic and fiscal policies for the next fiscal year.’
Preparation of budget
The process begins six months before the financial statement’s tabling in Parliament. The finance ministry allocates revenues to departments; disputes go to the prime minister or Union cabinet for resolution.
The finance minister, meanwhile, discusses proposals and demands with stakeholders, and finalises decisions with the prime minister.
How is budget presented?
Each year, Parliament’s budget session begins on January 31, with the President of India’s address to a joint sitting of the two Houses – Rajya Sabha and Lok Sabha. The document itself is tabled the next day, in Lok Sabha, the Lower House.
The 2017 budget was the first to be presented on February 1, a shift from the previous years, when it was presented on the last working day of the month. It was also the first to include announcements related to Railways; before September 2016, the latter was a separate entity, and presented days before the Union budget.
The ‘halwa’ ceremony
The ‘halwa’ ceremony marks the final stage of the budget presentation process and precedes the ‘lock-in’ process of the budget’s tabling. During their ‘lock-in,’ officials involved in budget’s preparation are housed inside the Budget Press in North Block, to prevent leaks. They come out only after it has been tabled.
‘Paperless’ budget
Since 2021, the budget has been ‘paperless’; i.e. it is read out from a tablet. This practice was adopted due to Covid-19 but has stayed on.
Can someone else present budget?
In February 2019, which was again an interim budget, it was tabled by Union minister Piyush Goyal, who was assigned finance as an additional portfolio in absence of then finance minister Arun Jaitley, who was ill and receiving treatment in the United States.
Can I access budget documents online?
Yes, all 14 documents are uploaded on the ‘Union Budget Mobile App.’
Why is budget important?
It is closely watched by businesses, investors, and the general public as it provides insight into the government’s economic policies and priorities and can have a significant impact on the economy and people’s lives.
