Journey of the Union Budget

From Preparation to Passing: A 6-Stage Constitutional Process

📝

STEP 1

Preparation & Estimates

August - January

Ministries and States submit their financial requirements.

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💼

STEP 2

Presentation

February 1st

The Finance Minister presents the budget in the Lok Sabha.

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🗣️

STEP 3

General Discussion

3-4 Days after Presentation

Broad debate on policies and principles. No voting.

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🔍

STEP 4

Scrutiny by Committees

February - March (Recess)

Departmental Standing Committees examine demands in detail.

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🗳️

STEP 5

Voting on Demands

April

Lok Sabha votes on budget demands. Rajya Sabha has no voting right.

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📜

STEP 6

Passing of Bills

By End of April

Appropriation Bill and Finance Bill are passed to legalize spending and taxes.

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Structure of the Budget

Explore how the government classifies its money. Click on the cards to collapse/expand sections.

Government Budget

Annual Financial Statement (Art. 112)

Budget Receipts

Revenue Receipts

"Neither creates liability nor reduces assets."

Examples

Income Tax
GST
Dividends from PSUs
Interest Received

Key: Recurring nature

Capital Receipts

"Either creates liability or reduces assets."

Examples

Loans (creates liability)
Disinvestment (reduces asset)
Recovery of Loans

Key: Non-recurring / One-time

Budget Expenditure

Revenue Expenditure

"Neither creates assets nor reduces liability."

Examples

Salaries & Pensions
Interest Payments
Subsidies
Defense upkeep

Key: Consumption / Maintenance

Capital Expenditure

"Either creates assets or reduces liability."

Examples

Infrastructure (Roads/Schools)
Repayment of Loans
Buying Machinery

Key: Asset Creation / Investment

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