Union Budget 2025: How India’s Budget is Prepared; Everything You Need to Know

Union Budget 2025: The Union Budget 2025, set to be presented on February 1, will be the second full budget of the Modi 3.0 government. Nirmala Sitharaman, the finance minister, will be presenting her seventh consecutive budget to the Parliament this year.

As per the custom, Nirmala Sithraman will be presenting budget in the Lok Sabha on February 1, 2025. The session will be broadcasted live on Lok Sabha TV and its online platform.

What is Union Budget?

The budget is a yearly financial statement that outlines the central government's planned income and expenses for the next fiscal year, running from April 1 to March 31.

The budget document, which has been referred to as the bahi-khaata since 2019, includes the government's fiscal, expenditure, income, and economic plans.

How is Union Budget Made?

The Union Budget is prepared approximately six months prior to its presentation in Parliament, which typically takes place in September.

• The Finance Ministry sends a budget circular to all ministries and departments, providing guidance for preparing revised estimates for the current year and budget estimates for the next year.
• Based on the circular, ministries and departments submit their revenue and expenditure details, including central taxes and charges, to the Finance Ministry.
• Ministries use the Provisional Statement of Budget Estimates (SBE) to submit their budget proposals.
• High-level government officials, led by the Secretary (Expenditure), hold pre-budget meetings (starting mid-October) to finalize the budget ceilings for each ministry or department.
• Temporary spending limits are assigned by the Finance Ministry to various departments.
• After discussions with the Prime Minister or Union Cabinet, the Finance Ministry decides on objections or changes to the allocations.
• Once finalized, the Finance Minister’s budget speech is prepared with input from the central government and finance ministry departments.
• Budget documents are printed at the Finance Ministry’s in-house press, with restricted access in the months leading up to the budget presentation.

Halwa Ceremony Before Lock-in

The 'halwa ceremony' is the last step in the budget planning process. Every year, this custom is carried out prior to the start of the "lock-in" procedure for the officials participating in budget drafting.

The President's recommendations are also sought to be introduced and taken into consideration in the Lok Sabha prior to the Budget being presented to the Parliament.

Union Budget Presented On…

Following the proper procedures and clearances, the budget and budget speech are delivered to the Lok Sabha on February 1. Following that, the bill to implement the already mentioned financial suggestions is introduced right away.