Union Budget 2025: The Budget for the financial year 2025-26 is scheduled to be tabled in the parliament on February 1, a day after the budget session will commence with the presidential address. Finance Minister Nirmala Sitharaman will present the second full budget of the third term of Narendra Modi-led NDA government. 

A budget is a yearly activity that presents documents of expenditure and sources of revenues for the upcoming financial year. It is the blueprint of the actions, expenses and revenue a government is going to generate in a fiscal year. Preparing a budget is an essential activity for the government, so it goes through various steps before the final documents are presented in the parliament. 

Secrecy in Budget Preparation- A Lockdown-Like Scenario

This is the last ten-day stretch of preparing the Union Budget. It is a form of lockdown during which officers and employees involved work under extreme security and confidentiality. These officials are barred from using phones, sending emails, or even stepping outside the premises for personal reasons, not even for a medical emergency. Such secrecy heightens the value of Budget documents.

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What Is The Process Of Union Budget Preparation?

- Preparation Starts Early Thus, it typically begins in mid-September.

Issue of Budget Circulars: At this point, the Finance Ministry releases to all ministries and departments a Budget circular. It directs the ministries and departments to prepare their revised estimates for the current financial year and estimated provisions for the subsequent financial year.

Revenue and Expenditure Estimates: The revenue and expenditure estimates from the ministries and departments are based on the circular presented. It encompasses central taxes and duties.

Presentation of Provisional Statements: Ministries submit their Budget Proposal in the form of a Provisional Statement of Budget Estimates (SBE).

Pre-Budget Consultations: Senior officials of the government, headed by the Secretary (Expenditure), start deliberations in mid-October to decide the budgetary limits for each ministry or department.

Disposal of Resources: The finance ministry, after consultation, issues provisional revenue limits for ministries for their expenditures likely to be incurred in the next financial year.

Halwa Ceremony: The halwa ceremony provides a ceremonial break for officials involved in the preparation of the Budget during "lock-in". This ceremony marks the prelude to the final stage of the Budget preparation.

Presidential Recommendations: Before its presentation in Parliament, the Budget receives the President's recommendations for introduction and consideration in the Lok Sabha.

Budget Presentation: The finance minister presents the Budget speech in the Lok Sabha on February 1. Simultaneously, the bill to implement the financial proposals is introduced.

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