New Delhi: As India gears up for Budget 2024-25, scheduled to be presented on July 23, 2024, the nation’s fiscal planning takes center stage. This budget holds particular significance as it marks the first fiscal roadmap of the newly elected Modi 3.0 government, carrying with it the hopes and expectations of a diverse populace.
Let us try to understand how the much anticipated Union Budget is prepared meticulously by the finance ministry under the stewardship of Finance Minister Nirmala Sitharaman.
Economy-wide consultations by the finance minister
Months before its presentation, Sitharaman initiates crucial pre-Budget meetings with stakeholders representing various sectors. These discussions are pivotal, involving the Department of Revenue, industry unions, farmers’ associations, trade unions, economists, and representatives from corporate entities across diverse sectors. Insights and inputs gathered from these consultations form the bedrock of the budget’s framework.
Circular issued
Central to the budgetary process is the issuance of a circular by the Department of Economic Affairs, outlining estimated financial expenditures across ministries and sectors. This document sets the stage for inter-ministerial discussions to negotiate fund allocations and priorities. The finance ministry collaborates closely with other ministries to formulate a comprehensive blueprint that addresses national priorities while ensuring fiscal discipline.
Budget: Key components
Key components of budgetary revenue include taxes, penalties, government fees, dividends, and other sources. The primary objective of the Union Budget, presented annually in February, is to foster economic growth by investing in critical sectors, enhancing revenue streams, and promoting infrastructure development. Additionally, the budget outlines strategic initiatives aimed at poverty alleviation, unemployment reduction, and overall socio-economic development.
Once the Budget is prepared, the Union Finance minister takes part in the symbolic halwa ceremony to mark the sendungnof the Budget document for printing. While the Budget is presented digitally today, this symbolic ceremony remains in place even today
Budget: A history
Reflecting on historical milestones, India’s first budget post-independence was presented on November 26, 1947, by Finance Minister Shanmukham Chetty. The transition to a republic saw the inaugural Union Budget on February 28, 1950, signifying India’s self-governance in fiscal matters.
During the British era, James Wilson, Finance Minister of the British Government, introduced India’s inaugural budget on April 7, 1860, marking the beginning of formal financial planning under colonial rule.
What is the Budget all about
Budgetary deliberations not only shape economic policy but also reflect the government’s commitment to sustainable growth and inclusive development. With each budgetary cycle, India navigates challenges, seizes opportunities, and charts a course towards prosperity, guided by fiscal prudence and strategic investment.
India’s budgetary process embodies a blend of tradition and innovation, adapting to the evolving needs of a dynamic economy. As the nation awaits Budget 2024-25, it anticipates policies that will spur growth, empower sectors, and reinforce India’s position on the global economic stage.
As India gears up for Budget 2024-25, Finance Minister Nirmala Sitharaman leads consultations and plans to address national priorities, enhance infrastructure, and stimulate economic growth, continuing a tradition of evolving fiscal policies. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
