Union Budget 2024: A 10-Step Journey to Fiscal Planning


The Circular Call

    Six months before the grand reveal, the Finance Ministry sets the ball rolling by issuing circulars to all ministries, states, and autonomous bodies issuing guidelines for financial estimations for the upcoming year.

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Proposal Parade

    Ministries and entities send in their proposals, outlining their spending plans and requesting funds. Top officials, including the revenue secretary, meticulously review these proposals.

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Revenue vs. Expenditure

    The Finance Ministry then compares the estimated income and expenses from all proposals. This initial assessment gives a preliminary picture of the budget deficit, the gap between income and spending.

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Budgetary Allocation

    Based on the overall deficit and government priorities, the Finance Ministry allocates funds to different ministries and departments. This allocation isnt always smooth sailing; disagreements may lead to consultations with the Union Cabinet or even the Prime Minister.

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Listening to the Stakeholders

    The Finance Ministry doesnt operate in a vacuum. They hold pre-budget consultations with various stakeholders like state representatives, economists, and industry leaders. These consultations help them understand the needs and concerns of different sectors.

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The Sweet Tradition

    A unique tradition marks the final leg of preparation: the Halwa Ceremony. Days before the budget presentation, a large pot of halwa is prepared. The Finance Minister stirs the pot and serves it to officials, signifying the start of the lock-in period, where secrecy is paramount to prevent leaks.

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The Big Day Arrives

    The Big Day Arrives: On February 1st, after the Presidents approval, the Finance Minister presents the Union Budget in the Lok Sabha. The presentation highlights key points and explains the rationale behind the proposed allocations.

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Parliamentary Scrutiny

    The budget is then presented in the Rajya Sabha for discussion and debate. Both houses of Parliament have the opportunity to scrutinize the proposals before voting on them.

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The Final Nod

    Once approved by both houses, the budget is sent to the President for the final stamp of approval. The Presidents assent makes the budget an official document, ready to be implemented.

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The Roadmap Unveiled

    With the Presidents signature, the Union Budget transforms from a meticulously crafted plan into a concrete roadmap for Indias financial future. This roadmap guides the governments spending and economic policies for the upcoming fiscal year

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