Finance Minister Nirmala Sitharaman will soon present the second full budget of the third term of the BJP-led NDA government. The 2025 Budget is expected to be presented on February 1 at 11 a.m.
The Union Budget is more than just a financial statement but serves as a reflection of the country's economic performance in the previous year and its ambitions for the coming financial year. It outlines the government's expected expenditure and revenue forecasts for the financial year, April 1 to March 31.
Budget preparation involves a complicated series of steps over several months. The preparatory work usually starts around August when the Finance Ministry issues guidelines to various ministries, states, Union Territories and autonomous bodies. These guidelines require departments to submit their projected expenditure estimates for the upcoming fiscal year, along with an analysis of their revenues and expenditures.
Once these proposals are submitted, they are carefully reviewed by government officials. Extensive deliberations will follow to ensure that the proposals are consistent with the government's overall budgetary framework. The approved figures are then passed on to the Ministry of Finance, which distributes the revenue across different sectors and departments.
If there is any disagreement over the allocation of funds, the matter is referred to the Union Cabinet or even the Prime Minister for resolution. In addition, consultations are held through the Ministry of Economic Affairs and the Ministry of Finance with various stakeholders, including entrepreneurs, farmers, economists and foreign institutional investors. These discussions are intended to ensure that the budget takes into account the diverse needs of the country's economic sectors.
The preparation also includes a series of pre-Budget meetings, during which the Minister of Finance will discuss with representatives from different sectors. These include state officials, bankers, agricultural groups, economists and labor unions. These consultations provide valuable feedback to the government on the priorities and challenges faced by different segments of society.
After this consultation and consultation with the Prime Minister, the Minister of Finance finalizes the budget. The final document is then sent for printing, a milestone celebrated with a halwa ceremony – an event that marks the official start of the budget printing process.