Budget 2021: The Union budget is an annual financial statement of the central government containing details of estimated revenues, growth projections and expenditures. The Minister of Finance, Nirmala Sitharaman, will present the budget on February 1, 2021. The budget includes key elements such as the annual financial statement, the request for subsidies, the budget bill, the macroeconomic framework, etc. budget announcements this year for any sign of relief amid the current COVID-19 crisis. (Also read: Budget 2021: here’s everything you need to know about the key elements of the budget)
Here are the main facts to know about budget preparation:
1. The budget is prepared according to a calculation process between the Ministry of Finance and line ministries. Ministry officials and the Minister of Finance meet with representatives of the private sector, non-governmental organizations as well as other stakeholders to gather and understand the main expectations of the budget.
2. The Ministry of Finance prepares an estimate of the amount available to spend on the programs in the plan. The budget division issues an annual budget circular which includes detailed instructions to all ministries or departments for the calculation of budget forecasts.
3. Departments also provide their estimates to the Department of Finance on how much money they expect to earn in the next year.
4. The recommendation of the President must be obtained for the formal introduction and review of the budget in the Lok Sabha. The budget is presented to Lok Sabha after the president’s recommendation.