The making of Union Budget 2016: All you need to know about it

New Delhi, Feb 22: Union minister Arun Jaitley is set to present 2016 budget on February 29. The preparations of budget making begins with the ritual 'halwa ceremony'.

In the backdrop of JNU controversy, a stormy budget session is expected starting from Tuesday.

Making of Union Budget 2016 expalined

The Centre has prepared a list of 16 bills, including the GST Bill, Lokpal (Amendment) Bill, Factories (Amendment) Bill and the Anti-Hijacking Bill as priority to seek their passage in the Parliament.

Read More: 'Budget must balance taxation, spending, borrowing'

Here are the facts you need to know about the Union Budget

  • The budget division of department of economic affairs under the Ministry of Finance starts the making of budget either in the last week of August or the first fortnight of September annually.
  • Before starting the budget process a circular is issued to all Union ministries, states, UTs, autonomous bodies, departments and the defence forces for preparing the estimates for the next year.
  • The budget is prepared through a consultative process which involves ministry of finance, NITI Aayog and spending ministries.
  • Officials and staff directly associated with the making of budget remained isolated in the North Block office until the Budget is presented.
  • The printing of budget starts with customary ‘Halwa ceremony' to mark the beginning of the process.
  • Finance ministry issues guidelines to spending based on which ministries present their demands.
  • Extensive consultations take place between Union ministries and the Department of Expenditure of the finance ministry once all ministries & departments send in their demands.
  • Views of farmers, businessmen, FIIs, economists and civil society groups are also taken by the Department of Economic Affairs and Department of Revenue.
  • The pre-budget meetings are completed by the end of January. All the proposals prepared in the pre-budget meetings are discussed with the PM before the Budget is frozen.

Presentation of Budget

  • Once the Speaker agrees to the date suggested by the government the Secretary General of the Lok Sabha Secretariat seeks approval of President.
  • The Union Finance minister presents the budget in the Lok Sabha.
  • Cabinet is briefed by the Finance minister on the budget proposals through a 'summary for the cabinet' before presentation in the Lok Sabha.
  • The 'Annual Financial Statement' is laid on the Table of the Rajya Sabha after the FM's speech.
  • The bill is required to be passed by both the Houses and receive assent of the President within 75 days of its introduction.
  • The Budget speech is divided in two parts. One part deals with general economic survey & policy statements while another part contains taxation proposals.
  • The Annual Financial Statement is laid on the table of the Rajya Sabha after the FM's speech.
  • The budget is discussed in the Lok Sabha for 2 to 3 days a few days after the Budget is presented.
  • The budget process gets over once the Finance Bill is passed and signed by the President.

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