Finance Minister Nirmala Sitharaman will present the Union Budget.
Credit: PTI Photo
The Budget session of the Parliament is set to begin on January 28 and conclude on April 2, with the Economic Survey to be released on January 29.
According a proposal approved by the government, the Union Budget is set to be presented by Finance Minister Niramala Sitharaman on February 1.
The Union Budget is presented in Parliament for the upcoming financial year, highlighting the Indian government's annual financial statement with estimated receipts and expenditure.
It helps in policy structure and plays a key role in the funding of a government and economic growth.
Who is involved in the making of the Union Budget?
The budget takes months of planning, with several departments of the government working in cohesion.
The Union Budget is formulated by the Budget Division under the Department of Economic Affairs, which operates under the Union Ministry of Finance.
The process begins around August-September of the previous year, taking almost six months for the draft.
All States, Union Territories and Ministries are issued circulars by the Finance Ministry, asking them to prepare for the upcoming financial year after which they put forward their revenues and expenses from the previous year, adding to the estimates.
The Revenue Department and other top officials then review the proposed estimates provided to them by the states, UTs and the Ministries. The review is then sent to the finance ministry.
The Finance Ministry further makes a comparison of the estimated revenues and expenditure to find and calculate the overall budget deficit.
Next, the Chief Economic Advisor is consulted to overview the budget deficit, following which the Finance Ministry allocates revenue (budget) to different Ministries and departments.
The Finance Ministry also conducts pre-budget consultations with stakeholders, trade unions, economists, bankers and other State representatives.
Once the proposed budget has been approved following the consultations, the Finance Ministry discusses the tentative budget with the Prime Minister.
The Union Budget is presented by the Finance Minister in the Lok Sabha after an approval by the President.