Union Minister of Finance Nirmala Sitharaman is scheduled to table the Interim Union Budget 2024 in the Parliament on February 1 with the preparations reaching the final stage. The extensive preparation for the Union Budget involves several officials and it begins well in advance. From issuing the Budget Circular in August-September to passing the Budget before April 1, here is a look at the process.
How is Union Budget prepared?
Budget preparation begins six months before the scheduled date of February 1. It all begins when the Budget Circular is sent to Union ministries, states and UTs around August or September, asking them to submit estimates for the coming year.
Once submitted, government reviews the demands and following approval the data is submitted to the finance ministry. The ministry then allocates funds to various departments for future expenditures.
The finance minister conducts pre-Budget meetings wwith stakeholders such as bankers, economists and trade unions. Following the consultations, a final call is made after the finance minister discusses it with the Prime Minister.
Halwa ceremony
This is followed by a traditional 'halwa ceremony' which is a kind of a 'send-off' for finance ministry officials and staff involved in Budget preparation. The officials enter a 'lock-in' period, during which they stay in the basement of North Block, with no connection to the outside the world outside in order to maintain the secrecy around the final document.
They will emerge only after the finance minister completes her Budget speech in the Lok Sabha on February 1.
Who all are involved in the Budget preparations?
Besides the finance minister, Minister of State for Finance Bhagwat K. Karad, Finance Secretary T.V. Somanathan, Economic Affairs Secretary Ajay Seth, DIPAM Secretary Tuhin Kanta Pandey, Financial Services Secretary Vivek Joshi and Revenue Secretary Sanjay Malhotra are among key decision makers in the Budget preparation.
Other officials involved in the process include Chief Economic Advisor Anantha V. Nageswaran, Central Board for Direct Taxes (CBDT) Chairman Nitin Gupta, Central Board for Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal and Additional Secretary (Budget) Ashish Vachhani.
Paperless Budget and mobile app
Interim Budget 2024 will be delivered in paperless form just like the three previous full Union Budgets since 2021-22.
All the Budget documents will be available on the Union Budget mobile app for hassle-free access. These can be accessed by the MPs as well as the general public. The documents available on the app include Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc.
The app is available in English and Hindi and can be downloaded from App Store or Play Store. The documents can also be downloaded from the Union Budget website www.indiabudget.gov.in.
From briefcase to 'bahi khata'
Nirmala Sitharaman switched from the traditional briefcases to a digital tablet wrapped in a 'bahi khata' with a golden National Emblem embossed on it when she debuted as Finance Minister in July 2019 following the Lok Sabha elections. She said it was a departure from the colonial legacy. 2024 Interim Budget will also tilt to digital side.
Piyush Goyal was the last finance minister to carry a briefcase, a red one. Arun Jaitley, during his tenure, used red, black and brown briefcases. Pranab Mukherjee presented Budget in a red briefcase while Manmohan Singh often preferred a black bag.
Budget passing in Parliament
The budget should be passed by both Lok Sabha and Rajya Sabha before the next fiscal year begins on April 1. The previous Union Budget was passed on March 23, 2023.
