The statement of the estimated receipts and expenditure of the government for a particular financial year, presented to Parliament.
A Bill that authorises the government to withdraw funds from the Consolidated Fund of India for meeting expenditure during the financial year.
Spending on acquiring or maintaining fixed assets such as buildings, roads, equipment, etc.
The chief account of the government where all receipts and borrowings are deposited, and from which all expenditures are withdrawn.
The difference between the country's total imports of goods, services, and transfers and its total export of goods, services, and transfers.
Taxes imposed on goods imported into or exported from the country.
Taxes levied directly on individuals and companies, such as income tax and corporation tax.
The process of selling or liquidating government-owned assets or shares in public-sector enterprises.
A document providing detailed estimates of government expenditure during the financial year.
Taxes levied on goods produced within the country.
A Bill presented to Parliament along with the Budget that details the imposition, abolition, remission, alteration, or regulation of taxes.
The gap between the government's total expenditure and its total receipts (excluding borrowing).
Government policies regarding taxation, spending, and borrowing to influence the economy.
The total value of goods and services produced in a country during a specific period.
Taxes levied on goods and services, such as Goods and Services Tax (GST) and Customs duties.
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
Fiscal deficit excluding interest payments on past borrowings.
The total amount of money that a government owes external creditors.
The gap between the government’s revenue receipts and its revenue expenditure.
Spending on the day-to-day functioning of the government and services, such as salaries, subsidies, and maintenance costs.
The money received by the government from taxes and other sources, excluding borrowings.
Financial assistance granted by the government to individuals or businesses to promote economic and social policy.
The income gained by the government through taxation.
The annual financial statement of the Government of India, detailing its estimated receipts and expenditures for the financial year.
A special provision by which the government obtains Parliament’s approval for expenditure in the interim period between the start of the new financial year and the passing of the Budget.
Projections of revenue and expenditure for the upcoming financial year.
Funds received by the government from loans, recoveries of loans, and proceeds from disinvestment.
A tax levied for a specific purpose, such as education or health, in addition to existing taxes.
A fund used for emergency or unforeseen expenditures, with its corpus decided by the government.
The repayment of interest and principal on debt
The proposal of estimated expenditure submitted by various ministries for parliamentary approval.
The economic growth potential resulting from shifts in a country’s age structure, primarily when the working-age population is larger than the non-working-age.
The transfer of funds from the central government to state governments.
Revenue deficit minus grants for the creation of capital assets.
Policies aimed at reducing government deficits and debt accumulation.
Funds provided by the central government to state governments or local bodies for specific purposes.
The process by which the central bank controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
Loans taken by state-run firms or special-purpose vehicles that do not appear in the national Budget.
The allocation of funds for a specific purpose as part of the Budget.
The market where new securities are issued and sold for the first time.
Accounts where funds received by the government for specific purposes, like provident funds or small savings, are deposited.
Updated projections of revenue and expenditure made in the middle of the financial year.
An additional charge or tax, usually added to an existing tax.
Additional funds granted when the amount originally provided is insufficient.
Payments made by the government to individuals, primarily through social welfare programmes, without any service or goods being received in return.
Short-term debt instruments issued by the government to meet short-term borrowing needs.
A budgeting method where all expenses must be justified for each new period, starting from a "zero base”.
The process of paying off a debt over time in regular instalments of principal and interest.
A Budget in which revenues are equal to expenditures, resulting in neither a deficit nor surplus.
Income illegally obtained or not declared for tax purposes.
Refers to a government Budget that focuses heavily on environmental and sustainable initiatives.
The return an investor realises on a bond.
A situation where increased government spending reduces private sector investment.
A measure of a country's debt compared to its Gross Domestic Product (GDP).
A programme that aims to transfer subsidies and financial assistance directly to the beneficiaries' bank accounts.
A legislative framework aimed at ensuring fiscal discipline by setting targets for the government's debt and deficits.
A comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services across India.
Bonds that provide protection against inflation by adjusting the principal and interest payments according to inflation rates.
A traditional budgeting method where individual financial statement items are grouped by cost centres or departments.
Determining eligibility for government assistance based on an individual's income and assets.
A budgeting process that links the allocation of resources to the achievement of specific outcomes or goals.
A commission set up by the Government of India to recommend changes in salary structure of its employees.
The tax rate that allows the government to collect the same amount of revenue despite changes in tax laws.
The profit made by the government by issuing currency, especially the difference between the face value of coins and their production costs.
The occurrence of both a fiscal deficit and a current account deficit in an economy.
A proposed system where the government provides all citizens with a regular, unconditional sum of money.
The first Budget of independent India was presented by Finance Minister R K Shanmukham Chetti on 26 November 1947.
The first Budget after India became a republic was presented by Finance Minister John Matthai in February 1950.
The 1950 Budget laid the groundwork for the creation of the Planning Commission, though Finance Minister John Matthai was ideologically opposed to the idea. Matthai quit after a few weeks of his presenting the Budget.
The 1957-58 Budget, presented by T T Krishnamachari, introduced the wealth tax and a tax on railway passenger fees.
The 1973-74 Budget, presented by Y B Chavan, is known as the 'black' budget due to a high deficit of Rs 550 crore.
The 1986-87 Budget by Finance Minister V P Singh introduced MODVAT, a precursor to the VAT and GST.
The 1987-88 Budget saw the introduction of the minimum alternate tax (MAT) by Prime Minister Rajiv Gandhi, also the Finance Minister then.
The 1991-92 Budget by Finance Minister Manmohan Singh marked the beginning of economic liberalisation and reforms in India.
The 1991-92 Budget reduced the peak Customs duty from 220 per cent to 120 per cent.
The 1997-98 Budget, presented by P Chidambaram, is termed the 'dream' Budget for reducing personal income tax rates significantly.
The 1997-98 Budget introduced the Voluntary Disclosure of Income Scheme (VDIS) to tackle black money.
The 2017-18 Budget did not specify the rollout date for the Goods and Services Tax (GST) but made minimal changes to excise duty and services tax in anticipation of GST implementation.
Initially, the Union Budget was presented at 5 pm on the last working day of February, a practice inherited from the British era.
Yashwant Sinha, under Prime Minister Atal Bihari Vajpayee, changed the Budget presentation time to 11 am in 1999.
Finance Minister Arun Jaitley advanced the Budget presentation day to 1 February in 2017.
In 2017, Finance Minister Arun Jaitley merged the Railway Budget with the Union Budget, ending a 92-year colonial practice.
In 2019, Finance Minister Nirmala Sitharaman replaced the leather briefcase with the Swadeshi Bahi-khata for carrying Budget documents.
In 2021, Sitharaman read her Budget speech from a Made in India tablet.
Due to the Covid-19 pandemic, the government decided to distribute Budget documents electronically to Members of Parliament from 2021.
The printing of Budget documents requires staff to be locked up in the basement printing press of the North Block weeks before the Budget presentation.
The halwa ceremony, marking the beginning of Budget document printing, continues with COVID-19 protocols in place.
The word "Budget" does not appear in the Constitution of India; it is referred to as a "statement of accounts."
Article 112 of the Indian Constitution refers to an annual financial statement of estimated receipts and expenditure.
The word "Budget" comes from the French word 'bougette,' meaning 'a small bag.'
The Budget for the period from 9 October 1946 to 14 August 1947 was presented by Interim Government Finance Minister Liaquat Ali Khan.
The Union Budget was presented only in English until 1955, after which it was printed in both Hindi and English.
The central Budget concept dates back to 1860, two years after the administration of India transferred from the East India Company to the British Crown.
The first Budget in 1860 was presented by James Wilson, who later founded Standard Chartered Bank and 'The Economist' magazine.
The steepest fall in Sensex and Nifty on a Budget day was on July 06, 2009, when Pranab Mukherjee was the Finance Minister.
The sharpest increase in Sensex and Nifty on a Budget day was on February 29, 1992, with both indices closing up by 9.4 per cent.
Budget-making officials are literally locked down in the basement of the North Block days ahead of the Budget. Officials under lockdown do not have access to phones and are taken to a guarded room for emergency calls.
The finance minister is one of the few people allowed into the printing zone in North Block, but without a mobile phone.
The secrecy around the Budget increases from January onwards, culminating in the halwa ceremony, which briefly opens North Block doors to photographers.
Budget speech inputs come from three finance ministry wings — state of the economy and policy approach from the chief economic advisor, expenditure from the expenditure secretary, and taxation from the revenue secretary.
P Chidambaram reportedly typed out his Budget speeches on his computer to maintain confidentiality.
Pranab Mukherjee relied on a few key advisors for writing his Budget speeches.
Arun Jaitley's Budget speeches suggested the involvement of many draftsmen.
Manmohan Singh started the tradition of quoting poets in Budget speeches with Victor Hugo’s line: “No power on earth can stop an idea whose time has come” in his 1991 Budget.
Nirmala Sitharaman began her Budget speech in 2021 with Tagore's line: “Faith is the bird that feels the light and sings when the dawn is still dark.”
P Chidambaram quoted Tagore in his 1997-98 Budget: “Thy call has sped over all countries of the world… but where is India? Let her take up her burden and march with all.”
Pranab Mukherjee quoted Kautilya’s Arthashastra in the 2010-11 Budget and Shakespeare’s Hamlet in the 2012-13 Budget: “I must be cruel only to be kind.”
Jawaharlal Nehru, Indira Gandhi, and Rajiv Gandhi held additional charge as finance minister while serving as Prime Minister.
PM Nehru presented the Budget in 1958-59 after T T Krishnamachari resigned due to the LIC-Haridas Mundhra financial scandal.
Indira Gandhi took charge of the finance ministry in 1969, presented the Budget in 1970, and held the portfolio for a year.
Rajiv Gandhi became finance minister in January 1987 and presented the Budget for 1987-88, holding the portfolio for about six months.
The distinction of presenting the most Budgets goes to Morarji Desai, who presented a total of 10 Budgets between 1958-63 and 1967-69. He later became becoming Prime Minister in 1977.
VP Singh presented two Budgets in 1985-86 and 1986-87 before becoming Prime Minister in 1989.
Charan Singh presented the Budget as deputy prime minister in 1979-80 before becoming Prime Minister for a few months.
Manmohan Singh, finance minister from 1991-96, became Prime Minister in 2004.
Pranab Mukherjee and R Venkataraman, both finance ministers, went on to become Presidents of India.
P Chidambaram, known for the 1997 ‘dream budget’, presented nine Budgets in three different stints
The late Pranab Mukherjee presented eight Budgets, first under Indira Gandhi from 1982-84 and then under Manmohan Singh from 2009-12.
Yashwant Sinha, Yashwant Rao Chavan, and C D Deshmukh have each presented seven Union Budgets.
Before his time as Finance Minister, C D Deshmukh was the first Indian to head the Reserve Bank of India from 1943-49 and founded the India International Centre.
Manmohan Singh and T T Krishnamachari have each presented six Budgets.
The term "environmental hygiene" was first mentioned in a Budget by Finance Minister T T Krishnamachari in 1957-58.
Environment was barely mentioned in Budgets for more than a decade after 1957-58.
Prime Minister Indira Gandhi, also the Finance Minister, brought the environment to the centre stage in the 1970-71 Budget. In 1982-83, Pranab Mukherjee identified energy saving and environmental protection as high-priority areas.
In 1987-88, Rajiv Gandhi proposed green packages as Finance Minister. Jaswant Singh's 2003-04 Budget reduced duty on electric vehicles from 16 per cent to 8 per cent for environmental considerations.
The only time in India's history that a Budget was tabled by one Prime Minister and passed by another occurred in 1997 when Inder Kumar Gujaral replaced H D Deve Gowda as Prime Minister.
Former Prime Minister Manmohan Singh's longest Budget speech in 1991 had a word count of 18,650.
Arun Jaitley's 2018 Budget speech was 18,604 words long.
Nirmala Sitharaman’s Budget 2020-21 speech had a word count of 13,200.
The shortest Budget speech was delivered by H M Patel in 1977, comprising just about 800 words.
Finance Minister John Matthai's second Budget speech for 1950-51 was delivered extempore. That was the only Budget speech in India's history that did not have a written text before delivery.
Nirmala Sitharaman is the only finance minister of India, who completed a five-year term as FM and returned after the general elections to occupy the same ministerial berth.
Pranab Mukherjee is the only finance minister whose last budget in his first stint and his first budget in his second stint were separated by 25 years. The time gaps between budget speeches of P. Chidambaram in his three stints were 7 years and 5 years.
Manmohan Singh is known to have held the finance portfolio for five years from 1991 to 1996. But he held this ministry as an additional charge on two occasions - for 55 days between November 2008 and January 2009 and for 35 days between June and July of 2012.
2024 Budget:
Nirmala Sitharaman
2024 Interim Budget:
Nirmala Sitharaman
2023 Budget:
Nirmala Sitharaman
2022 Budget:
Nirmala Sitharaman
2021 Budget:
Nirmala Sitharaman
2020 Budget:
Nirmala Sitharaman
2019 Budget:
Nirmala Sitharaman
2019 Interim Budget:
Piyush Goyal
2018 Budget:
Arun Jaitley
2017 Budget:
Arun Jaitley
2016 Budget:
Arun Jaitley
2015 Budget:
Arun Jaitley
2014 Budget:
Arun Jaitley
The Union Budget is the Government of India's yearly financial plan, showing how much money it expects to earn and spend in the coming year. It outlines economic policies, tax plans, and fund allocation to different sectors. The Budget aims to manage the economy, promote growth, control inflation, and achieve social and economic goals. It reflects the government's priorities and impacts both the economy and daily lives of citizens.
The Union Budget is presented annually on February 1. This timing allows for the legislative process to be completed and the Budget to be implemented from the start of the financial year on April 1. The Budget session in Parliament starts with the presentation, followed by discussions and approvals. This schedule, adopted in 2017, aims to improve financial planning and execution.
The Budget is presented by the Union finance minister of India. The finance minister delivers a detailed speech in the Lok Sabha, outlining the government's financial plans, policies, and proposals for the upcoming financial year. The speech covers key economic indicators, fiscal measures, and sector-specific initiatives. The finance minister plays a crucial role in formulating the Budget, in consultation with various ministries and stakeholders, and steering the legislative process for its approval in Parliament.
The Union Budget includes the Revenue Budget, Capital Budget, Fiscal Deficit, Revenue Deficit, and Primary Deficit. The Revenue Budget covers the government's revenue receipts and expenditure. The Capital Budget includes capital receipts and payments, like loans and investments. The Fiscal Deficit indicates the shortfall between total revenue and expenditure. The Budget also details allocations for sectors like agriculture, education, health care, infrastructure, and defence, reflecting the government's priorities.
The Indian Union Budget impacts common citizens through changes in tax policies, subsidies, and welfare schemes. Income tax rates and slabs affect disposable income, while indirect taxes like goods and services tax (GST) influence the cost of goods and services. Allocations for social welfare programmes, health care, and education impact public services. Infrastructure spending creates jobs and improves living standards. Subsidies on essential commodities and agricultural support affect household expenses and rural incomes. Overall, the Budget shapes economic opportunities and living conditions for citizens.
The Union Budget is the financial statement presented by the central government, detailing its revenue and expenditure plans for the entire country. It addresses national priorities and allocates funds to central ministries and sectors. The state Budget is prepared by individual state governments, focusing on financial needs and priorities within their states. State Budgets allocate funds for state-specific projects and services. While the Union Budget impacts national policies, state Budgets address local issues and development goals within the framework set by the central government.
Direct taxes are levied on individuals and corporations, like income tax and corporate tax. These taxes are paid directly to the government by the entity on whom they are imposed. Indirect taxes are levied on goods and services, such as goods and services tax (GST) and Customs duties. These taxes are collected by intermediaries (like retailers) from consumers, who ultimately bear the tax burden. The Union Budget outlines the rates, policies, and changes related to both direct and indirect taxes, impacting overall taxation and revenue generation.
The fiscal deficit is the difference between the government's total expenditure and total revenue (excluding borrowing). It indicates how much government spending exceeds its revenue, necessitating borrowing to bridge the gap. A high fiscal deficit can lead to increased borrowing, higher interest rates, and inflation, potentially impacting economic stability. Conversely, a controlled fiscal deficit suggests sound fiscal management. The fiscal deficit is a critical measure of a government’s financial health and its ability to manage public finances responsibly.
Major economic reforms in the Union Budget often include changes in tax policies, measures to boost investment, initiatives for financial inclusion, and policies to enhance infrastructure development. Reforms may target sectors like agriculture, manufacturing, and services to promote growth and employment. The Budget may also introduce policies for ease of doing business, digitisation, and sustainable development. These reforms aim to address economic challenges, improve the business environment, and achieve long-term economic goals, reflecting the government's strategic vision for the country's development.
Citizens can access the Union Budget documents on the official government website www.indiabudget.gov.in in a digital format. The Budget speech, highlights, and detailed financial statements provide comprehensive information. Detailed reports, analyses and views by financial analysts and commentators are published on the Business Standard website and in the newspaper to help you understand the various aspects of the Union Budget. Additionally, you can also access simplified explanations and infographics on Business Standard for better understanding of the Budget.
The Budget speech is delivered by the Union finance minister in the Lok Sabha, outlining the government's financial plans and economic policies for the upcoming financial year. It includes an overview of the current economic situation, key initiatives, tax proposals, and allocations for various sectors. The speech highlights major policy changes and reforms, addressing priorities such as infrastructure development, social welfare, and fiscal management. It provides a road map for achieving the government’s economic goals and sets the tone for parliamentary discussions and public discourse on the Budget.
The Budget impacts various sectors by allocating funds and introducing policies tailored to their needs. For agriculture, it may include subsidies, support prices, and schemes for irrigation and crop insurance. In education, the Budget can provide funding for schools, scholarships, and digital learning initiatives. Health care allocations often focus on public health infrastructure, insurance schemes, and disease-control programmes. These sector-specific allocations aim to promote growth, improve services, and address challenges within each sector.
The Budget approval process involves several steps: The finance minister presents the Budget in the Lok Sabha. This is followed by a general discussion where members debate its merits and implications. Detailed scrutiny is conducted by Parliamentary Standing Committees. Demands for grants are reviewed, discussed, and voted on by the Lok Sabha. The Appropriation Bill and Finance Bill are introduced, debated, and passed to authorise government spending and tax changes. Finally, the Budget is approved by both Houses of Parliament and receives the President's assent.
The Budget addresses inflation by implementing fiscal policies that control government spending and manage public debt. It may include measures to regulate supply and demand, such as subsidies for essential goods or adjustments in tax rates. To stimulate economic growth, the Budget allocates funds for infrastructure development, incentivises investment, and supports key industries. It may introduce reforms to enhance productivity, improve ease of doing business, and promote exports. By balancing expenditure and revenue, the Budget aims to create a stable economic environment conducive to growth.
Budget estimates are the initial projections of revenue and expenditure for the upcoming financial year, based on current policies and economic conditions. Revised estimates are updated projections made mid-year, reflecting changes in economic circumstances and government policies since the original Budget was presented. Actuals refer to the final revenue and expenditure figures at the end of the financial year, showing the real financial performance. These three components help track financial planning accuracy and the effectiveness of fiscal management throughout the year.
The Public Accounts Committee (PAC) scrutinises government expenditure to ensure it adheres to the sanctioned Budget and is spent efficiently and effectively. The PAC examines audit reports submitted by the Comptroller and Auditor General (CAG) of India, highlighting instances of financial irregularities, wasteful expenditure, and non-compliance with financial regulations. The committee’s findings and recommendations help promote transparency, accountability, and financial discipline in government operations, ensuring that public funds are used appropriately and in accordance with legislative intent.
The Budget promotes infrastructure development by allocating funds for projects in sectors such as transportation, energy, telecommunications, and urban development. It may introduce policies to attract private investment through public-private partnerships (PPPs) and provide incentives for infrastructure financing. Initiatives for smart cities, rural development, and connectivity improvements are often highlighted. These efforts aim to create a robust infrastructure network that supports economic growth, enhances quality of life, and boosts India’s competitiveness on a global scale.
The Union Budget typically includes a range of new schemes and programmes aimed at addressing current economic and social challenges. These may cover areas such as health care, education, agriculture, manufacturing, rural development, digitalisation, and skill development. The announcements are designed to stimulate economic activity, provide social security, and promote inclusive growth. Specific details of new schemes vary each year, reflecting the government’s priorities and responding to emerging needs and opportunities within the economy.
Fiscal policies in the Budget can influence foreign investment by creating a favourable or unfavourable business environment. Policies that reduce corporate tax rates, offer tax incentives, and streamline regulatory processes can attract foreign investors. Infrastructure development and reforms aimed at ease of doing business also play a crucial role. Conversely, policies that increase taxes or impose restrictive regulations may deter investment. The Budget's approach to fiscal discipline, economic stability, and growth prospects significantly impacts investor confidence and foreign direct investment (FDI) inflows into India.
Capital expenditure refers to funds used by the government for acquiring, maintaining, or upgrading physical assets such as infrastructure, buildings, and machinery. These expenditures create future benefits and contribute to economic growth. Revenue expenditure, on the other hand, is the spending on the day-to-day functioning of the government, including salaries, subsidies, interest payments, and maintenance costs. Unlike capital expenditure, revenue expenditure does not result in the creation of assets but ensures the smooth operation of government services. Both types of expenditures are essential for balanced fiscal management and economic stability.