Understand in simple language, how the country's budget is made, what it means - Newztezz Online


Friday, January 5, 2024

Understand in simple language, how the country's budget is made, what it means

The Modi government is fully preparing to present the last budget of its second term. For this, work is being done under the leadership of Finance Minister Nirmala Sitharaman. Let us try to understand how the budget is prepared and what does it mean?

The process of preparing the country's budget is very important. This year, the last budget of the second term of the Modi government is to be presented. For this, pre-budget meetings are being organized under the leadership of Finance Minister Nirmala Sitharaman. These meetings are important parts of budget preparation. During the preparation of the budget, the Finance Minister discusses with various sector stakeholders like revenue department, industry associations, farmers associations, trade unions, economists etc. Various ministries, states, union territories and autonomous bodies are also given relevant information for budget preparation.

This is how budget preparation happens

In preparation of the budget, a circular is issued by the Department of Economic Affairs, which contains information about all the estimated financial expenses. After this, the amounts are discussed between different ministries. Then, the Finance Ministry meets with other ministries and prepares a blueprint. After this, senior officials of all the ministries discuss with the Finance Ministry for fund allocation. This process is a key aspect of budget preparation, in which agreement is reached between other ministries and the Finance Ministry.

This is the main focus of the government

The main sources of income of the government are taxes, revenue, fines, government fees, dividends etc. Through the Union Budget presented every year in February, the main objective of the government is to invest in various sectors, increase sources of income, and promote economic growth. In addition, the government makes plans to reduce poverty and unemployment and invests in areas such as infrastructure.

What is the history of budget?

India's first budget after independence was presented on 26 November 1947, which was presented by the first Finance Minister Shanmukham Chetty. After the Republic, the first Union Budget was presented on 28 February 1950. During the British rule, the first budget of India was presented on 7 April 1860, which was presented by James Wilson, the Finance Minister of the British Government.

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