Finance Minister Nirmala Sitharaman will present the Union Budget for 2024 on July 23. This budget is the first of the new BJP-led NDA government, which came to power for a third consecutive term, and will outline the financial plans and priorities for the fiscal year. The interim budget was presented on February 1.
How the Union Budget is prepared?
The Union Budget is prepared through an elaborate process involving various stakeholders and takes several months to complete.
The Finance Ministry issues circulars to all ministries, departments, states, Union Territories, and autonomous entities, requesting their budgetary proposals and estimates for the upcoming fiscal year.
The ministries submit their previous year’s earnings and expenses, along with estimates for the next year. The finance ministry then reviews these proposals, holds discussions with ministries and departments, and allocates revenues to various divisions for their upcoming expenses.
If there are any disagreements on funding allocations, the finance ministry takes it up with the Union Cabinet or the Prime Minister. The Department of Economic Affairs and the Department of Revenue also conduct consultations with stakeholders like agriculturists, small business proprietors, and foreign institutional investors to understand their needs and concerns.
Before finalising the budget, officials hold meetings with the various stakeholders for feedback and suggestions. Top officials, the Finance Minister, and the PM then review and discuss these inputs before making final decisions.
