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Budget Session of Parliament

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News

• The 31st of January will mark the start of the Parliamentary Budget Session. The meeting will go until the ninth of the following month i.e. February.
• On February 1st, Finance Minister Nirmala Sitharaman will deliver the Interim Budget and the President Droupadi Murmu will address the joint session of both Houses of Parliament to begin the session.

Budgeting in India

• Constitutional Facts:
  • As per the Indian Constitution’s Article 112, the Annual Financial Statement (AFS) is the name given to the Union Budget for a given year;
  • It is an estimate of the government’s receipts and outlays for a fiscal year, which runs from April 1st of the current year to March 31st of the following year.
• About the Budget :
  • A budget projects income and expenses for a given time period, usually a year. It serves as a tool for managing financial resources and accomplishing particular objectives like resource mobilization and fiscal consolidation, among others.
  • Prepared by the Department of Economic Affairs (DEA), Ministry of Finance, budget division.
  • The nation’s financial resources are managed and the government’s social and economic policies are carried out through the use of the budget.
  • Making educated decisions about taxation and spending, as well as identifying possible economic risks and opportunities, is facilitated by the budget.
• In general, the Budget includes:
  • Estimates of capital receipts and revenue;
  • Strategies for increasing revenue;
  • Estimates of spending, a breakdown of the final fiscal year’s actual receipts and outlays, along with the reasons for any surplus or deficit, and the proposed taxation, revenue prospects, spending plan, and launch of new initiatives are all examples of the economic and financial policy for the upcoming year.

Constitutional Requirements which makes Budget Important

Interim budget

• Before the general elections, the Indian government presents an interim budget.
• Rather than covering the entire fiscal year, interim budgets typically outline the government’s proposed spending plans for the upcoming few months.
• It is a financial position statement for the government that does not contain any new policy announcements or suggested tax changes, only estimates of revenue and expenditure for the upcoming fiscal year.
• The rationale for the interim budget is that the government that presents it may not be in power when the full budget is presented later in the year.
• Following the general election, the newly elected government—which will take office usually presents its complete budget.

Other Types Of Budgeting

• Zero-Based Budgeting: This approach to budgeting requires that all costs be assessed each time a new budget is created and that they be justified for each subsequent period. Beginning with a zero base, every government function’s needs and costs are examined in zero budgeting. Next, a budget is created based on the needs.
• Outcome Budget: The Outcome Budget evaluates each ministry’s and department’s performance as well as the reputable ministry’s use of its budgetary allocation. It assesses how well every government program has contributed to development. In 2005, it was first made available.
• Gender-Based Budgeting: This type of budgeting is described as “restructuring revenues and expenditures in order to promote gender equality and incorporating a gender perspective at all levels of the budgetary process.” Budgeting for gender equity is the actual procedure and the government sets aside money for female development, welfare, and empowerment schemes and programs through the Gender Budget.

 Source: newsonair

Disclaimer: All efforts have been made to represent India accurately and as per India government. However, Universal School of Administration, Bengaluru and its associated people do not own any responsibility for the correctness or authenticity of the same.

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