How is the budget prepared and what are the preparations? Know all information about it

8 Days to Union Budget 2024: Finance Minister Nirmala Sitharaman will present the budget on 1 February 2024. This budget is the last budget of the government before the next general elections to be held in April-May 2024. Although the budget presentation date is February 1, the work of preparing it starts months in advance. In such a situation, let us know what the constitution says about the budget and what preparations the government is making to present it.

Origin of the word budget?

First of all, if we know about the origin of the word budget, the word budget comes from the French word bougette, which means a leather bag. It is believed that the government and businessmen keep their earnings and expenditure documents in a leather bag, so the Finance Minister also arrives in Parliament with his documents in a leather bag. The term was popular in Britain and then it was popular in India.

What is the budget and where is it mentioned in the constitution?

There is no direct mention of budget in the Indian Constitution. But Article 112 of the Constitution deals with the annual financial statement. Under this section it is mandatory for the government to give an account of their income and expenditure every year. Besides, the President has the right to present the budget, but he does not present the budget. But he can ask a minister to present the budget instead of him. Usually the budget is presented by the finance minister but in 2019 it happened that Piyush Goyal presented the budget even though he was not the finance minister as Arun Jaitley was ill.

Who prepares the budget in India?

The process of budget preparation in India is very complex. NITI Aayog and Expenditure Ministries are involved in making it along with Finance Ministry. The Ministry of Finance prepares the Expenditure Proposal on the request of these various Ministries. After this, budgeting is done by the Budget Department under the Ministry of Finance.

What is the process of budget preparation? Know its three stages

First stage

The Budget Section issues a circular to all Union Ministries, State and Union Territories, Autonomous Organization Departments, Armed Forces. In which they are instructed to prepare the budget for the next year.

Second stage

Economic affairs department and revenue department during this time contact farmers, traders, economists, civil society organizations to know their views on the budget. This process takes place before the budget, so it is known as pre-budget discussion. After this discussion, the Finance Minister takes the final decision regarding the tax. Also, before finalizing the budget, it is discussed with the Prime Minister and he is also informed.

The third stage

At the last stage, the Finance Ministry receives revenue and expenditure receipts from all the departments involved while deciding the budget. From the data collected, an estimated income and expenditure plan is prepared for the next year. Apart from this, the government will once again meet with the state, bankers, agriculture sector people, economists and trade associations to finalize the budget. In which, issues such as tax exemption and providing financial assistance to these stakeholders are discussed. Finally the Finance Ministry prepares the budget speech based on the revised budget estimates.