The preparation for union budget starts from August or September.Union Budget is an annual report which contains government's revenue and expenditure for a particular fiscal year, which runs from April 1 to March 31.
It is prepared by budget division in Ministry of Finance after consulting with other ministries.
The government is scheduled to present an interim Budget on February 1, 2019.
Unlike a full-year budget, an interim budget covers a smaller period of time, usually few months.Here's a look at how Budget is prepared:1.
The preparation for Union Budget starts from August or September.
The finance minister and ministry officials initially meet representatives from private sector, non-governmental organisations and other stakeholders to understand their expectations from Budget.2.
The budget division issues an annual budget circular which consists of comprehensive instructions to all government ministries or departments for calculation of budget estimates.3.
The Finance Ministry then comes up with an estimate of how much money is available in next financial year to spend on plan schemes.4.
Final estimates of Plan and non-Plan expenditure for next year, and revised estimates for current year, are drawn up.5.
The next step is to decide how to raise money to meet expenditures for next year.
Ministries provide their estimates to finance ministry on how much money they expect to earn next year.6.
The ceremony for announcement of Union Budget starts with a traditional "Halwa" ceremony, which marks beginning of printing process of Budget.7.
The Budget team consolidates all figures of proposed budget and prepares final budget proposal.8.
The President's recommendation is required to be obtained under Article 117(1) and 117(3) for introduction and consideration in lower house of Parliament.9.
After President's recommendation, budget is presented in Lok Sabha, which is house of common man.10.
The Finance Bill, containing provisions for giving effect to financial proposals of government, is introduced immediately after presentation of Budget.
This completes budgetary process.