Union Budget of India: What it is and why it is so important

Business Standard explains the importance of Union Budget of India and the whole process of its making and passing in Parliament

In a federal country like ours, the constitution of India demarcates the governance structure through a three-tier system – the Union government, state governments, and local governments. In the scheme of distribution of power among them, the central or Union government enjoys the highest position. 

Under Article 112 of the Constitution of India, the central government is constitutionally bound to lay down the ‘annual financial report’ of the country. This report is commonly known as the Union Budget of India.

The Union Budget holds the same character as the budgets of other levels of government, except in the source