Key Points:
- Finance Minister Nirmala Sitharaman will present the first budget under the Modi 3.0 government on Tuesday.
- Sitharaman’s seventh budget speech will surpass the record of former Prime Minister Morarji Desai.
- The budget preparation involves traditions like the ‘halwa ceremony’ and detailed pre-budget processes.
The Budget Preparation Process:
The much-anticipated full budget for 2024-25 and the first under the Modi 3.0 government will be tabled in Parliament on Tuesday. All eyes will be on the major announcements by Finance Minister Nirmala Sitharaman and the government’s forward-looking guidance on the overall economy.
Halwa Ceremony: The Beginning of Budget Printing
A key event before the budget presentation is the ‘halwa ceremony,’ a tradition marking the start of the budget document printing. This year, the Halwa ceremony was held in North Block on July 16, attended by Finance Minister Sitharaman, Minister of State Pankaj Chaudhary, and other officials. This ceremony signifies the beginning of a lockdown at the finance ministry, where officials involved in budget preparation are not allowed to leave until the budget is presented.
Economic Survey: Setting the Stage for the Budget
A day before the budget presentation, the government releases its Economic Survey. Prepared by the Chief Economic Advisor, the Economic Survey provides an overview of the country’s economic performance and policy recommendations. It serves as a crucial input for budget formulation and offers insights into the state of the economy. The first Economic Survey was presented in 1950-51 and became a separate document from the budget in the 1960s.
Revenue Projections and Analysis
The finance ministry conducts an analysis of revenue projections, including tax receipts and non-tax revenue, to assess the government’s revenue potential. This analysis helps in formulating the fiscal policies and revenue and expenditure proposals outlined in the budget.
Budget Day Procedures
On the morning of budget day, Finance Minister Nirmala Sitharaman will go to North Block to meet with her ministry’s secretaries. Together, they will then visit the President’s residence to obtain permission before presenting the budget. Half an hour before the presentation, a Cabinet meeting headed by the prime minister is held to brief ministers and secure Cabinet approval.
Presentation of the Union Budget
At 11 am, the Finance Minister will present the Union Budget in the Lok Sabha. The budget speech will outline the government’s fiscal policies, revenue and expenditure proposals, taxation reforms, and other significant announcements. The budget will then be subjected to detailed debate and discussion in both houses of Parliament, allowing members to scrutinize its provisions, raise concerns, and propose amendments.
Post-Budget Activities
Following its presentation and approval by Parliament, the Union Budget sets in motion a series of post-budget activities aimed at implementing its provisions and achieving the outlined objectives. The budget documents, including the Annual Financial Statement, Demand for Grants, and Finance Bill, will be available on the “Union Budget Mobile App” for hassle-free access by Members of Parliament and the public.
Paperless Budget Presentation
Like the previous few Union budgets, the 2024 budget will be delivered in paperless form. The Union Budget Mobile App, available on both Android and iOS platforms, will provide bilingual (English and Hindi) access to all budget documents. The app can also be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in).
Conclusion
The presentation of the 2024-25 Union Budget marks a significant moment for the Modi 3.0 government. With Finance Minister Nirmala Sitharaman surpassing historical records, the upcoming budget is expected to address crucial economic issues and set the direction for India’s fiscal policies. The meticulous preparation and traditions behind the budget underscore its importance in shaping the nation’s economic future.
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