8/7/2019 ALL ABOUT PREPARATION OF FINANCIAL BUDGET

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ALL ABOUT PREPARATION OF FINANCIAL BUDGET

• Why is it done? 

Any Source of Collection of Funds (Taxes, Duties, and

Borrowings) can only be authorized by the PARLIAMENT

only

Any   Expenditure   related   to   Government   spending

requires PARLIAMENT approval

• The Budget Team 

• Confidentiality…

The Budget text is prepared on delinked computer from

all networks.

All officials & staff are quarantined during the period of 

preparation & printing of the budget document. The Intelligence Bureau keeps a close eye on all the

officials & staff involved including their mobile phones &

other communication devices which are put either

under surveillance or jammed.

FINANCE

MINISTRY FOR OVERALLFRAMING OF

BUDGET

DEPT OFEXPENDITURE

FOREXPENDITURE

DEPT OFECONOMIC

AFFAIRS FORNON-TAX

REVENUE

DEPT OFECONOMIC

AFFAIRS FORDEFICIT

DEPT OFREVENUE FORTAX REVENUE

8/7/2019 ALL ABOUT PREPARATION OF FINANCIAL BUDGET

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• The Process…

1. Economic  Affairs  Dept  (Budget  Div)  issues  circular  to  a

ministries, states & UTs, autonomous bodies & the defense

forces for preparation of revised estimates for the current FY &budget estimates for next FY

2. The Finance Ministry frames the budget having their specific

departments for specific responsibilities taking inputs from The

Planning Commission, The Comptroller & Auditor General (CAG),

various Administrative Ministries & Other Stakeholders such as

Industry bodies, Political Parties, Economists & Civil Society

Groups

3. The decisions regarding TAX PROPOSALS are finally taken by theFinance Minister in consultation with the Prime Minister

4. The FM then presents the budget in Lok Sabha on last working

day of February. The budget speech has two parts with first part

dealing with General Economic Survey/Policy Statements while

second part contains Taxation Proposals. The Annual Financial

Statement is laid on the table of Rajya Sabha after FM’s speech

in Lok Sabha

5. After presentation, the proposed budget is discussed in the Lok

Sabha for next 2-3 days with FM’s reply at the end following with

a VOTE on Account for expenditures for next 2 months of 

ensuing year. The House is adjourned after that & the standing

committees   in   the   mean   time   decides   on   GRANTS   i

consideration within the budget

6. The Standing Committee reports are then presented to the

House which discusses & votes on demands for grants following

with introduction of Appropriation Bill which gives the authority

to the Government to incur expenditure from & out of the

Consolidated Fund of India