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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
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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