Union Budget for 2022-23 Will be introduced in Lok Sabha by Finance Minister Nirmala Sitharaman on 1 February. The 256th budget session will begin on January 31, just two weeks before the elections to five states – Goa, Uttarakhand, Manipur, Punjab and Uttar Pradesh.
While the first half will run from January 31 to February 11, the second half will run from March 14 to April 8. The budget will be presented in the lower house of Parliament before it is presented in the Rajya Sabha.
Before presenting the budget, News18.com answers your questions about the important document.
What is budget?
Article 112 of the Indian Constitution deals with the annual financial statement. According to Article 112, a statement of the estimated receipts and expenditure of the Government of India in respect of each financial year running from 1st April to 31st March is to be laid before Parliament. This statement, titled “Annual Financial Statement” is the main budget document.
The Annual Financial Statement shows the receipts and payments of the Government of India in three parts – the Consolidated Fund, the Contingency Fund and the Public Account.
Union Budget Classified into two types: revenue and capital. The revenue budget deals with the revenue receipts (tax revenue and other revenue) of the government and the expenditure from these revenues. Revenue expenditure is for the normal operation of public departments and various services, interest charges, subsidies, etc., on loans made by the government. Basically, it is responsible for the expenditure that does not result in the creation of an asset.
On the other hand, capital budgeting consists of capital receipts and payments. The main objects of capital receipts are loans taken by the Government of India from the public and other parties.
Who makes the budget?
The budget is prepared by the Ministry of Finance after consultation with all other Ministries regarding their funding requirements. On Budget Day, the annual financial statement is presented in the Lok Sabha by the Finance Minister. While the presentation part of the process is the shortest, it takes several months to shape the budget.
Apart from the states, the finance ministry consults with the NITI Aayog and the spending ministries. All the ministries have to put forth their demands based on the expenditure guidelines of the Ministry of Finance. The Budget Division of the Department of Economic Affairs in the Ministry of Finance is the nodal body responsible for budget preparation.
Since 2017, the Union Budget is being presented on 1 February, which allows it to be passed by Parliament even before 31 March.
How is the budget made?
The Budget Division issues a circular to all the Central Ministries, States, Union Territories, Autonomous Bodies, Departments and Defense Forces to prepare their estimates for the next financial year. As the estimates come in, extensive consultations are held between the Central Ministries and the Department of Expenditure of the Ministry of Finance.
Meanwhile, the Department of Economic Affairs and the Department of Revenue meet all stakeholders such as farmers, traders, FIIs, economists and civil society groups to take their views. Once these pre-budget meetings are over, the final decision on tax proposals is taken by the Union Finance Minister.
Before freezing the Union Budget, the proposals are discussed with the Prime Minister.
How is the budget presented?
Before presenting the budget, the Finance Minister briefs the cabinet through the ‘Summary for the Cabinet’.
The Finance Minister presents the budget in the Lok Sabha on that day by reading the ‘Budget Speech’. The budget speech outlines the main points of the entire budget, its major estimates and proposals which can run into several thousand pages.
The budget is presented in the parliament after the speech of the minister and a copy of the budget is presented in the Rajya Sabha immediately after it is presented in the Lok Sabha.
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