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Budget 2024 Explainer: How is the country’s Union Budget prepared; What is the meaning of the budget without these things?

Ritul Pandey

By Ritul Pandey

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Union Finance Minister Nirmala Sitharaman will present the general budget of Modi 3.0 in July. This is her sixth consecutive budget. She will break the record of former Finance Minister Morarji Desai for presenting the budget the most number of times. Morarji Desai holds the record of presenting the budget the most number of times. He has presented a total of 10 budgets. Do you know how the budget is made, what preparations are done for it, what are the important things?

How does budgeting begin?

The biggest basis for preparing the budget of a country is the Gross National Income, GDP. The market value of goods and services produced in the country is determined. On that basis, information about fiscal deficit, government income and expenditure is revealed. Making a budget is not a one-day process. It takes at least 6 months. The government seeks data from various departments. On that basis, it is known how much money that department needs. While expenditure on public welfare schemes, subsidies and other concessions is estimated.

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Participation of these experts in preparing the budget

The preparation of the Union Budget is done under the supervision of the Finance Minister. For this, the role of the Finance Secretary, Revenue Secretary and Expenditure Secretary is important. The Union Finance Minister is constantly in touch with them. A series of meetings took place. Along with the Finance Minister’s team, the Prime Minister and the Niti Aayog team also help.

These things are important in the budget

The government gives complete information about revenue and expenditure in the budget. Money given for public welfare schemes, expenditure on imports, expenditure on salaries of government employees, money for military forces, expenditure on government offices, loans taken. The amount of interest paid on the loan is given.

Revenue includes information about the sources of government taxes and indirect taxes and the amount received from them. Apart from taxation, the government earns revenue from government companies. Also, income from bonds. Efforts are made to raise money by disinvesting in government companies.

If the expenditure exceeds the revenue, the government faces a fiscal deficit. In such a situation, the government tries to increase its income. Taxes have been increased. Now due to GST, the government’s income has increased well. Efforts are made to bring new industries and services under the purview of taxation.

Some special things related to the budget

1.Budget is a French word baguette. It means small bag. The first budget of the country was presented on 7 April 1860 by the East India Company.

2. India’s first budget was presented by Scottish economist James Wilson. Infrastructure was not even a word in the budget presented in the 1900s.

3. The first budget of independent India was presented on 26 November 1947. It was presented by India’s first Finance Minister Shanmanukham Chetty. In this budget, Rs 92.74 crore i.e. about 46 percent was allocated for defense.

4. Till 1955, the budget was printed only in English language. After this, it is being printed in Hindi along with English. Now for the last few years, the budget has started coming in digital form for the citizens.

5. Former Prime Minister Indira Gandhi presented the budget for the first time in the financial year 1970-71. She was the first woman to present the budget. In 2019, Nirmala Sitharaman presented the budget. She became the first full-time woman Finance Minister.

6. Former Finance Minister Morarji Desai holds the record of presenting the budget more than 10 times. In 2017, for the first time, the Railway Budget was included in the Union Budget. The longest budget speech was given by Arun Jaitley. In 2014, he gave a 2.5 hour long speech.

Ritul Pandey

Ritul Pandey

I am Ritul Pandey, a content creator focused on delivering entertaining and engaging news from the worlds of entertainment and sports

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