Saturday, 2 February 2013

Union Budget-Part 1




By reading the title of this page you must be thinking that this blog is all about the estimations, highlights and projections of the Union Budget 2013 -14. Well, if you are thinking that then you are wrong because in this article I am going to discuss about who makes a budget, how is the budget made and who presented the first Budget In India. Hence, this article will give you an insight about goes behind making a Union Budget.
Every year the Finance Minister of India presents the Union Budget on the last day of February and it is implemented from April 1. All of us wait for that one day and is glued to our television sets keeping all our important tasks aside.  Well, let us begin with the history.
BUDGET HISTORY
The first budget was presented by James Wilson in the year 1860, the then Finance Minister of India. After independence Liaquat Ali khan presented the Budget in the year1947-48 and the first full fledged budget was presented by RK Shanmukham on 26th November, 1948.
WHO MAKES THE BUDGET
The Union Budget is prepared in consultation with three departments that is the Finance Ministry, planning Commission and the spending ministries. All the states of India first present their annual demand to the Planning Commission. After this, the Finance Ministry and the Planning Commission issues all the necessary guidelines and the spending limits.
HOW IS THE BUDGET MADE
The Budget Division issues a circular to all the States, Union Ministries and the Union Territories and advises them to prepare the budget for the next year. Pre Budget meetings are made in the month of January.  A final decision is taken on the tax proposals after taking in to considerations the opinions or amendments of the Finance Minister and the Prime Minister. Subsequently, the Department of Economic Affairs and the Revenue Department officials organize a meeting with the stakeholders like FIIs, Economists as well as other civil society groups and form consent.
Given below is the image of the picture of RK Shanmukham Chetty who presented the first Budget in India post independence



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