Anticipation is mounting as India prepares for the full Union Budget for the fiscal year 2024-25, scheduled to be presented by Union Finance Minister Nirmala Sitharaman in the latter half of July. From collecting data to eating halwa, let's take a look at what conspires before the budget is presented:
Understanding the Budget Plan
At its core, a Budget plan outlines projected costs and revenues over a specific period, typically a fiscal year beginning on April 1 and concluding on March 31 of the following year. The Ministry of Finance meticulously crafts this plan, drawing on historical data and forecasts to address the nation's evolving needs. This process commences approximately six months before the Finance Minister's parliamentary presentation, ensuring thorough analysis and strategic foresight.
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These circulars are subsequently disseminated to disbursing and field officers, who provide information on their department's financial expenditures and receipts for the current and previous fiscal years, along with their financial needs for the upcoming fiscal year.
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The information and projections submitted by field-level officials undergo thorough review by senior departmental authorities. Upon approval or necessary adjustments, these figures are forwarded to relevant ministries for additional scrutiny. Subsequently, the Finance Ministry scrutinizes and aligns them with the current economic conditions and available resources to assess their viability.
Allocation and oversight
After thorough analysis, the Finance Ministry distributes revenues among ministries and designs new public welfare schemes. Disputes over resource allocation are escalated to the Union Cabinet or the Prime Minister for final decisions. Once allocations are settled, the Finance Ministry collaborates with the Central Board of Direct Taxes and the Central Board of Excise and Customs to forecast revenues for the next fiscal year, culminating in a consolidated report forming the Union Budget. Throughout, the Finance Ministry engages with stakeholders like farmers and small business owners to gather feedback and ensure effective budgeting.
The Halwa ceremony
The printing of the Union Budget starts with the traditional "halwa ceremony," where the Finance Minister and other officials consume halwa. Afterward, the printing process begins, and all involved officials and staff are secluded within the ministry premises to maintain confidentiality until the Budget is presented in Parliament.
Path to economic growth and development to take center stage
The Budget Session of Parliament, commencing from July 22 to August 9, 2024, will feature the presentation and debate of the Union Budget. President Droupadi Murmu will address both Houses on the session's first day. The budget's focus will prioritize economic growth, consumption enhancement, tax reforms, and labor welfare.
Possibly continuing the theme of "Viksit Bharat Budget 2024" from the interim budget earlier this year, policies and initiatives aimed at achieving a developed India by 2047 are expected. The budget is anticipated to address sectors such as agriculture, education, healthcare, infrastructure, manufacturing, and taxation, with industry experts and analysts optimistic about reforms fostering economic growth, job creation, and improved living standards.
This comprehensive budget follows an interim one presented on February 1, necessitated by the 2024 Lok Sabha elections. With the Narendra Modi-led NDA government securing its third consecutive victory in these polls, the upcoming budget holds pivotal significance.
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