What is a Budget: Know important facts about Budget

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What is budget?

Finance Minister Nirmala Sitharaman (Finance Minister Nirmala Sitharaman) today i.e. On 1 February 2024 FY 2024-25 Has started presenting the general budget. This time's budget is special in many ways. This Finance Minister Nirmala Sitharaman (Finance Minister Nirmala Sitharaman) By This is the sixth consecutive budget presented.

It is a very long process with many steps from the blueprint of the budget to its presentation and the budget is presented in the Parliament in just one day, but in this we want that Budget 2024-25 Before you have complete information about the budget, we have here what is budget, What is the history of budget, How is the budget made? , Why is budget important , Where did the word budget come from?, what is halwa ritual, what are the types of budget, budget process What is.

What is the budget? (What is a Budget)

The word 'Budget' has not been used anywhere in the Constitution of India, but paragraph 112 Annual financial statement to the Union Budget of India in or Annual Financial Statement Having said. colloquially general budget (Union Budget or Central Budget). Actually, in the budget a detailed description of the estimated receipts and expenses of the government for that year is written. It is celebrated every year on the first working day of February in India. Presented in Parliament by the Finance Minister is done. You can also understand it like this:

Budget Definition: What Is a Budget? : A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a group of people, a business, a government, or just about anything else that makes and spends money.)

Definition of budget

Where did the word 'budget' come from:

Origin of the word 'Budget' French Word ''Bougete' It is derived from , which means 'leather bag'. In fact, 1733 When the British Prime Minister and Finance Minister (Chancellor of Exchequer) Robert Walpole came to Parliament to present an account of the country's financial condition, he brought his speech and related documents in a leather bag. Leather bag in FrenchBouget' (budget) is called Is. Since then, this tradition came to be called first Budget and then by this time 'Budget'.

History of Indian Budget:

India's first budget was presented by James Wilson of the East India Company on 18 February 1860. James Wilson is also called the father of the Indian budget system. India's first budget after independence: First budget of independent India Finance Minister RK Shanmukham Chetty has 26 november 1947 introduced into. And First budget of Republic of India 28 February 1950 to John Mathai Was introduced by.

Types of budget:

There are five types of budgets:
1. Traditional or general budget
2. Performance Budget
3. Zero based budgeting
4. Result oriented budget
5. Gender budget

Traditional Budget or Common Budget

This budget is presented every year before the beginning of the financial year. of this budget Main objective: To control government expenditure And along with giving impetus to development works Establishing financial control over the legislature and executive is also. This budget contains the annual account of the income and expenditure of the government.

Performance Budget

performance budget The budget which is prepared keeping in mind the results of the work is called Performance Budget. of this budget Main objectives Based on the tasks the government wants to accomplish It happens. What is the government doing in the performance budget? She tells all these things about how much she is doing and at what cost. this budget achievement budget or performance budget is also called.

Zero Base Budget

If the execution budget is not implemented properly Zero based budget is brought. When the general budget starts running into a complete deficit. Meaning that in case of low income and high expenditure, this budget is issued, due to which on expenses curb losses by cutting Can be installed.

Result Oriented Budget

How far have the schemes started for the people of the country reached? In 2005, due to the absence of any specific yardstick to measure whether the target was achieved or not, Result Budget brought into. Under which various ministries and departments have allocated funds in the general budget. what and how to use It was made necessary to give details of what was done.

Gender Budget

women and child welfare Allocation of schemes and programs related to gender budget Has been brought under. Government with gender budget women's development, Wellbeing and empowerment It ensures the provision of a fixed amount every year for schemes and programs related to agriculture.

Budget 2024: Halwa ceremony

Halwa ritual has special significance. According to this ritual, halwa is first prepared in a big iron vessel. Which is distributed among all the employees of the ministry including the Finance Minister. After that all the employees get busy in printing the budget inside the North Block. During this period no employee goes to his home. Everyone remains closed there till the budget is presented.

Why is budget important? (Importance of Budget)

According to the provisions made in the Constitution, the Central Government renews its tenure every year. annual accounts Presents in Parliament. In this account, on one hand she tells her annual income and on the other hand she tells her Full details of one year's expenses Does. This entire account general budget or full budget It is said. within budget Allocation of funds to each ministry is done. No more money can be spent than the amount determined in the budget; if more money is required, approval has to be taken again from the Parliament. With the amount allocated by the budget plans are run and the benefits of these schemes General public is given to.

Who makes the budget?

in budgeting Finance Ministry, NITI Aayog and other ministries of the government Are involved. It is prepared with their consultation. The Finance Ministry issues guidelines on the basis of expenditure. Ministries have to state their respective requirements. The responsibility of preparing the budget rests with the Department of Economic Affairs in the Finance Ministry. it occurs. A few days before the finalization of the budget, halwa is made in a big pan in the Finance Ministry. whom ,'Halwa Ceremony' It is said that the ministry officials directly involved in the budget preparation process have to remain in the ministry after the Halwa ceremony.

How is the budget made?

The circular is issued for allocation of budget to all central ministries, states, union territories, autonomous bodies, departments and defense forces. They are asked to make projections for the next year. After the demands of the ministries and departments are received, intensive discussions are held between the central ministries and the Department of Expenditure of the Finance Ministry.

Process of Budget

The budget is introduced through a finance bill. Finance Bill can be introduced only in the Lok Sabha. After the budget is passed in the Lok Sabha, it is sent to the Rajya Sabha for approval.If the Rajya Sabha does not approve it within 14 days, then the budget is considered passed, and the provisions made in the budget are implemented in the entire country on the first day of the financial year.

How is the budget presented?

Consent is taken from the Speaker on the date of presentation of the budget by the government. After this, the Secretary General of the Lok Sabha Secretariat takes the approval of the President. The Finance Minister presents the budget in the Lok Sabha. just before presenting the budget 'Summary for the Cabinet' Through this, the Cabinet is briefed on the budget proposals. After the speech of the Finance Minister, the budget is laid on the table of the House.

What happens after the budget is presented in Parliament?

After the budget speech is read, a general discussion takes place on the budget measures. Members participating in the debate discuss budget proposals and policies. During this period, the standing committees of the departments study the estimated expenses of the ministries in detail, these are called Demands for Grants.


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