How the budget of India is prepared.
                     HOW THE BUDGET 
OF INDIA IS 
PREPARED?
INTRODUCTION
• Do you know exactly how India's Union 
Budget is prepared? 
• Although it takes just a day for the 
budget to be submitted to parliament, it 
takes several months for it to be ready. 
Source: 
economictimes.indiatimes.com
WHAT IS A BUDGET?
• Under Article 112 of the Constitution of 
India, the annual budget of the Union is a 
statement of the government's projected 
revenue and expenditures for that 
specific year.
Source: www.peoriapublicradio.org
WHO MAKES THE BUDGET?
• The budget is generated by an advisory 
mechanism involving the Ministry of 
Finance, NITI Aayog and the Ministry of 
Expenditure. 
• The Ministry of Finance issues budget 
recommendations based on which 
ministries submit their specifications. 
Source: financialexpress.com
WHO IS THE NODAL BODY?
• The Budget Division of the Department 
of Economic Affairs in the finance 
ministry is the nodal body responsible for 
producing the Budget.
Source: financialexpress.com
HOW IS THE BUDGET MADE?
• To plan the projections for the next year, 
the Budget Division issues a circular to 
all Union ministries, provinces, UTs, 
autonomous bodies, and the defence 
forces. 
• Extensive meetings between the Union 
ministries and the Department of 
Spending of the Ministry of Finance are 
conducted after ministries & 
departments have submitted their 
requests. 
Source: expertmile.com
WHO ELSE ARE INVOVED?
• Around the same time, stakeholders such 
as producers, traders, FIIs, economists 
and civil society organisations consult 
with the Department of Economic Affairs 
and the Department of Revenue to take 
up their views.
Source: 
economictimes.indiatimes.com
WHAT NEXT?
• When the pre-Budget discussions are 
over, the Finance Minister will take the 
final decision on the tax proposals. 
• Before the Budget is frozen, the plans are 
debated with the PM.
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HOW IS THE BUDGET PRESENTED?
• After the Speaker agrees to the date 
proposed by the government, the 
Secretary General of the Lok Sabha 
Secretariat seeks the President's 
permission. 
Source: indiatoday.com
ROLE OF FINANCE MINISTER
• In the Lok Sabha, the finance minister 
discusses the budget and outlines key 
projections and recommendations. 
• He advises the cabinet with a 'review for 
the cabinet' on the policy plans shortly 
before he introduces the budget. 
• After the minister's address, the budget 
is tabled in Parliament.
Source: 
economictimes.indiatimes.com
WHAT WILL HAPPEN THIS YEAR?
• The budget will be somewhat different 
from average this year. Since this is an 
election year and a new government will 
come to power following the elections, a 
complete budget is unlikely to be 
proposed by the existing government. 
• It is likely to propose either an 
emergency budget or only pick a vote on 
account in compliance with the 
convention for such a situation.
Source: 
economictimes.indiatimes.com