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Budget 2024: Here’s a breakdown of how the budget process works
The finance minister presents the budget proposal on the first day of the Budget session, providing details of the government’s expenditure, fund allocation for various schemes and sectors for the upcoming fiscal
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The budget process officially starts in September, with a Budget Circular being issued to all ministries, states, union territories and autonomous bodies by the finance ministry asking them to prepare estimates for the coming year.
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After reviewing all the suggestions, the finance ministry decides on fund allocation. In case of disputes regarding the same, the Union Cabinet or the Prime Minister is consulted before the final presentation.
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Pre-budget meetings are then held around October with various ministries; they are chaired by the secretary (expenditure) and go on till about the middle of November.
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The Budget estimates are finalised once the statistics ministry releases its first advance estimate of the current year's GDP in the first week of January. The finance ministry then assumes a certain nominal GDP growth rate for the next financial year and uses that as the basis of its various estimates, such as the fiscal deficit target and tax collections.
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The finance minister presents the budget proposal on the first day of the Budget session, providing details of the government’s expenditure, fund allocation for various schemes and sectors for the upcoming fiscal. It is discussed and debated in the Lok Sabha before being passed to the Rajya Sabha for approval.
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In the final step, the budget is implemented. The proposals in the budget come into force on April 1.
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