What is Budget cycle

Budget cycle

What is Budget cycle
What is Budget cycle
The Budget cycle comprises steps beginning in the run-up to the Budget and culminates into its presentation.
 
The preparation of the Budget involves the Ministry of Finance, along with multiple bureaucrats. Before the Budget is prepared, expert advice is also taken from economists and other stakeholders.
 
The cycle includes the following steps — estimating the amount of expenditure and receipts, estimating the fiscal deficit, trying to narrow the fiscal deficit, the presentation of the Budget, and getting the approval from Parliament.
 
First, plans of expenditure of various ministries are looked at. According to the resources available, the amount is allocated for ongoing plans and new plans which can be taken up.
 
Some non-plan expenditure, such as subsidies and wage payments, is also taken into account.
 
Next, revenue payments in the form of capital and current receipts are estimated. Money from disinvestment or repayment of government loans falls into the category of capital receipts. Income from taxes, dividends from state-run companies, etc, fall under the category of revenue receipts.
 
After these amounts are estimated, expenditure and receipt under each head are matched to see the shortfall, also known as deficit. This is deliberated upon and the government then decides how much it shall borrow to be able to meet the same.
 
The government decides on the amount of borrowing after considering what amount of deficit it would like to maintain.
 
Then, the government presents the Budget, which comes into effect on April 1, the beginning of a new financial year, after being approved by the Lok Sabha and signed by the President. The Rajya Sabha can give comments on the same.

Latest Updates on Budget cycle

Union Budget 2023: FinMin notifies refund of security deposits to MSMEs

2 min read Last Updated :Feb 06 2023 | 9:21 PM IST
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Indirect taxes: Budget proposals aligned with govt's strategic priorities

10 min read Last Updated :Feb 03 2023 | 6:15 AM IST
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Union Budget 2023-24 on expected lines, good for investment push

5 min read Last Updated :Feb 03 2023 | 6:10 AM IST
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Direct tax: Budget gives a blueprint for sustained high-growth trajectory

9 min read Last Updated :Feb 03 2023 | 6:10 AM IST
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Budget 2023: From Ashok Leyland to L&T, brokerages bet on cyclical stocks

6 min read Last Updated :Feb 03 2023 | 6:05 AM IST
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Social sector: The emphasis of Budget is on the consolidation of schemes

6 min read Last Updated :Feb 03 2023 | 6:00 AM IST
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Govt to move to exemption-free I-T regime with lower taxes: Revenue Secy

3 min read Last Updated :Feb 02 2023 | 8:47 PM IST
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Union Budget 2023: Allocation for aid to foreign countries cut by 2.6%

2 min read Last Updated :Feb 02 2023 | 8:42 PM IST
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Budget: Govt announces 150% hike in outlay of Swachh Bharat Mission-Urban

2 min read Last Updated :Feb 01 2023 | 11:22 PM IST
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Union Budget stands to benefit all sections of society: Anurag Thakur

2 min read Last Updated :Feb 01 2023 | 11:08 PM IST
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Budget allocates Rs 4,692 cr for Ministry of Information and Broadcasting

1 min read Last Updated :Feb 01 2023 | 10:55 PM IST
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'Union Budget 2023-24 is a road map for nation building', says Assocham

3 min read Last Updated :Feb 01 2023 | 10:48 PM IST
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Union Budget: Rs 28,138 cr allocated to meet requirements for OROP scheme

1 min read Last Updated :Feb 01 2023 | 10:37 PM IST
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Budget 2023-24: Civil Aviation Ministry's allocation dips to Rs 3,113.36 cr

2 min read Last Updated :Feb 01 2023 | 10:31 PM IST
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Budget: NPCIL gets Rs 9,410 cr as India seeks to ramp up nuclear capacity

2 min read Last Updated :Feb 01 2023 | 10:28 PM IST
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Life insurance firms' shares fall on taxation proposal related to policies

3 min read Last Updated :Feb 01 2023 | 9:18 PM IST
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Budget 2023: Govt pegs FY24 disinvestment revenue target at Rs 51,000 crore

2 min read Last Updated :Feb 01 2023 | 9:11 PM IST
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Union Budget 2023: Kiren Rijiju hails outlay of Rs 7,000 crore for e-courts

3 min read Last Updated :Feb 01 2023 | 9:00 PM IST
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Budget numbers highly doable, should push private capex cycle: BoB chief

3 min read Last Updated :Feb 01 2023 | 8:53 PM IST
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Budget 2023: Govt allocates nearly Rs 12,544 crore to Department of Space

2 min read Last Updated :Feb 01 2023 | 8:50 PM IST
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