Budget 2018 Simplified: What happens after FM’s Budget speech?

Once the budget is presented it has to make its own journey through parliament. The speech in the Lok Sabha by the finance minister is followed by the tabling of the finance bill in parliament.  Discussions on the economy and the broad measures detailed in the budget take place without any voting. Both houses of parliament, Lok Sabha and Rajya Sabha, then take a 3 week recess.

Following this, parliamentary committees submit reports on various ministries’ estimates or demands for grants from the allocated budget. At this stage, Members of Parliament can move something known as “cut motions” seeking reduction in grants to any of the ministries. Essentially, these grants are voted for or against in the Parliament.
The demands for grants that are not voted until the last day are ‘guillotined’. Yes, guillotine as in the French revolution guillotine. Metaphorically, of course. Demands for grants of most ministries are guillotined or voted upon together.

Once the voting on grants is complete, the Appropriation Bill is introduced, considered and passed by the appropriation of the Parliament. An appropriation bill provides legal authority for withdrawal of funds from what is known as the Consolidated Fund of India. This consolidated fund is the account where government revenues are pooled. After this, the finance Bill is put to vote finally for approving proposed tax changes.

Once the bill is passed by both houses of parliament, it is sent to the President for his assent. The bill becomes a statute after president’s signature.