Elaborate the various stages of preparation of budget in India before it is presented in the parliament.
The Finance Minister urges different ministries and departments to prepare their estimates and send the reports within a given period of time. The task is performed by Deputy Commissioners with the help of other local officers and staff.
In the second step, the estimates sent by the disbursing officers are scrutinized by HOD’s and the revise estimates are then send to Estimates Committee. The committee considers these estimates and after its approval sends them to the Finance Ministry finance ministry. The Finance ministry gives the final decision and passes the demands of several Administrative Ministries and fixed a net figure for each Ministry.
Once the budget estimates on the expenditure side are done; the Finance Ministry prepared the estimates of revenue side with the help of Central Board of Direct Taxes and Central Board of Indirect Taxes and, lays a consolidated statement for the cabinet approval. Finally, the Finance Minister in consultation with the Prime Minister now prepares a Financial Policy which is kept secret till it is presented in front of parliament during the budget session. (174 words)
Topics: GS-III: Government Budgeting