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Presentation of Union Budget in Lok Sabha

Posted by Admin on January 15, 2015 | Comment

The Union Budget or the annual budget of India is regarded as the Annual Financial Statement, which is presented before the Parliament every year. The budget, which is presented by the Finance Minister, goes through a layered process before it is finally passed by the House and brought into effect on 1 April.

Presentation of Union Budget in Lok Sabha

Why is the Union Budget tabled on the last working day of February?

Although the budget is presented on the day announced by the President, it is generally on the last working day of February that the finance minister has to submit the budget to the Parliament so that the latter gets a month’s time to review and suggest changes in the proposed budget.

The finance minister begins his budget speech at 11 am by briefing the Lok Sabha members on general economic survey of the country. After he introduces the budget, he goes on to mention the new proposals for taxation and discloses the changes in existing taxes. Presenting the Annual Financial Statement in the Rajya Sabha is the last step in the process.

What is Vote on Account?

A few days after the budget is presented, the discussion on its provisions commences in the Parliament. The discussion on budgetary provisions also includes debates over different proposals for taxation. The ‘vote on account’ is a special provision by which government obtains the vote of Parliament for the funds needed to cover the expenses to be incurred on various items for a specific period during the year. As the Parliament cannot vote for the entire budget before the new financial year begins, it ensures that government has enough funds at its disposal to run the administration.

How is the Union Budget discussed in Lok Sabha? 

The budget is discussed in two stages. A general discussion on the budget is the first stage, which continues for four to five days. During this stage, the Parliament discusses only the underlying policies and principles of the budget. After the general discussion gets over, the Lok Sabha is adjourned for a fixed period, during which the Standing Committees give audience to the demands for grants of various Ministries.

Some facts about presentation of the Union Budget

For those uninitiated, the first Union budget of independent India was presented on November 26, 1947 by the then finance minister R K Shanmukham Chetty. The first budget only presented a review of the economy and did not propose any new taxes. The credit for presenting maximum number of budgets goes to Morarji Desai. In his capacity as India’s finance minister, he presented ten budgets during his stint from 1959 to 1964 and 1967 to 1970. In fact, both Manmohan Singh and Yashwant Sinha have the record of presenting five budgets in a row.

The Union Budget for 2015-16 will be presented by the finance minister Arun Jaitley towards the end of February 2015.