Expectations are high as the budget is likely to focus on changes in the income tax structure and measures to improve the ease of doing business in India. Major announcements and the government’s forward-looking guidance on the economy will be closely watched.Sequence of Events
The budget presentation will begin at 11 am in the Lok Sabha, followed by a presentation in the Rajya Sabha. Sitharaman will lay out the estimated receipts and expenditures for the year 2024-25. Additionally, she will present documents under the Fiscal Responsibility and Budget Management Act, including the medium-term fiscal policy strategy statement and the macro-economic framework statement.
Pre-Budget Rituals
Before the presentation, the finance minister will meet with secretaries at the North Block, the Ministry of Finance headquarters, and then proceed to the President’s residence for permission to present the budget. A Cabinet meeting, headed by the Prime Minister, will also be held to brief ministers and secure approval.
The Budget-Making Process
The process begins with the Ministry of Finance issuing circulars to all ministries, Union territories, states, and autonomous entities around September-October, requesting their demands and recommendations. The budget is typically tabled on February 1.The Halwa Ceremony
A few days before the budget presentation, the government conducts the traditional ‘halwa ceremony,’ marking the start of budget document printing. This ceremony also signifies the beginning of a lockdown at the finance ministry, ensuring confidentiality until the budget is presented.
Economic Survey Insights
The Economic Survey, released a day before the budget, provides a comprehensive overview of the country’s economic performance. “India is poised to remain the fastest-growing major economy in 2024-25,” said Chief Economic Adviser V Anantha Nageswaran, projecting a growth rate of 6.5-7.0 percent for the coming fiscal year. The survey, prepared by the Chief Economic Adviser, offers insights into economic trends and policy recommendations.
Digital and Accessible Budget
Following the trend of recent years, the 2024 budget will be paperless. All budget documents, including the Annual Financial Statement and Finance Bill, will be accessible via the “Union Budget Mobile App.” This app, available in both English and Hindi, can be downloaded on Android and iOS platforms, or from the Union Budget Web Portal.
The interim budget, tabled on February 1, addressed financial needs until a new government was formed post the Lok Sabha elections. The tradition of presenting the budget on February 1 began in the 1960s, after the Economic Survey was separated from the budget documents. The Halwa ceremony, a significant pre-budget event, marks the commencement of budget document printing and the finance ministry lockdown. The survey provides essential data, contributing to budget formulation.
Once presented, the budget will undergo detailed debates in both houses of Parliament. Members will scrutinize its provisions, raise concerns, and propose amendments. After parliamentary approval, the Union Budget initiates various activities to implement its provisions and achieve its objectives.
(With inputs from ANI)