The Union budget serves as a financial statement outlining the proposed expenditures and revenues of the Central government for the upcoming fiscal year, which spans from April 1 to March 31 of the following year.

Annually, the Union Finance Minister presents the budget in the Lok Sabha on February 1, providing a comprehensive overview of the government’s economic and fiscal policies for the approaching fiscal year.

Here is an overview of how the Union budget is prepared:

The process begins six months before the budget is presented in Parliament, with discussions starting in August-September of the previous year.

Relevant ministries collaborate with the NITI Aayog to prepare estimates, and the approved data is then forwarded to the Union Finance Ministry.

The finance ministry, upon receiving estimates from various ministries, allocates revenues to the respective departments. Any disputes regarding fund allocation are escalated to the Prime Minister or the Union Cabinet for resolution.

Pre-budget meetings are conducted by the finance ministry to discuss proposals and demands from various stakeholders. Final decisions are made in consultation with the Prime Minister.

The budget is officially presented in the Lok Sabha in February and must receive parliamentary approval before the end of the current fiscal year on April 1.

Before the budget is tabled, a ‘halwa’ ceremony takes place, and a ‘lock-in’ procedure is implemented for ministry staff to prevent leaks. This lock-in period remains in effect until the budget is presented in the Lok Sabha.

In 2017, the tradition of presenting the budget on the last day of February was changed, and it is now presented on February 1.

The Budget is closely monitored by various stakeholders, including business entities, investors, and the general public, as the government’s economic and fiscal policies directly influence the lives of citizens and the fate of businesses in the country.