All About Union Budget 2021, Complete Guide to beginners
In the starting of every month, my father, head of the family, discuss the expenditure in the past month for example water bills, milk expenses, flour expenses, maid salary, etc. Then take my past month’s salary too and give money to my mom according to each Tend every bill and extra money for buying vegetables and other minute expenses. The left money by reducing expenses from father’s and my salary is my pocket money and some are savings. This is how the Budget is managed in our home.
Similarly, Union Budget is for the whole country and the only difference in our home’s budget and Union Budget is, that Union Budget tells us about future, how much we will spend or earn in the upcoming year? And in home’s budget, we talk about how much we spent or earned in the previous month? Union Budget is like planning for the economy of a country.
1. Starting Of This Planning (Union Budget)
This planning or we should say the making of Union Budget roughly starts in August or September. Before 6 months when it presented in the front of our country. This process starts when the Ministry of Finance sent a circular to other ministries and asks them, what they want to do, to remove drawbacks or what yozana do you want to bring for the benefit of country people in their respective fields? How many rupees do you want in next year to work? The demand for funds by the ministry is called Demand for Grant. The Finance ministry also questions that how much money they hope to earn in the next 2 years?
2. Screening and Meeting by Finance Minister
When all the proposals from other ministries came on the desk then it is checked by the finance ministry. After this checking the finance minister meets and discusses with P.M., Union Cabinet and External Stake Holders or Industrialists, and then the budget is made.
3. Union Budget Halwa Ceremony
The finance ministry has its printing press in the North block of Delhi to ensure confidentiality, where all these budget documents are printed and prepared. To symbolize that the budget of this year is prepared and printing is going on, the Finance Ministry eats Halwa.
4. The Economic Survey
Before One day of Budget Speech, Finance Ministry releases one more document called Economic Survey. Economic Survey highlights economic trends in the country. Basically, it is the summary of the economic state of our country, it also tells us about which economic problems face Government and what the plans of the Government to tackle them are. The Next day is the Budget Speech Day.
5. Union Budget Speech
The Budget speech is presented by the Finance Minister in Lok Sabha of Parliament. This speech looks complicated and long but it has organized structure.
Starting of speech- The Finance minister starts his/her speech by giving an overview of the economic state of our country. After that, the minister tells us about government schemes and achievements of their government.
1st Half of Speech- Finance minister tells what schemes he/she is going to launch. He/she also tells the total expected expenditure and total expected earnings here.
2nd Half of Speech- It is called Part-B and it is related to taxes. The minister here states that the taxes were increased or decreased or we brought a new tax.
The main source of earning for the government is taxes. The Government also earns by the services they provided or by selling assets like Air India, Bharat Petroleum, etc.
The Budget Speech is presented on the 3rd or 4th day of the Budget Session. This session continues from February to April. In session’s meantime both houses of parliament adequately discuss the Union Budget that is elaborated, following in this article.
On the first day of the budget session, the President of our country address both houses of parliament, which was held on 29 January, 2021. This speech was boycotted by 17 opposition parties to symbolize protest against Three Farm Laws that were brought by the BJP government in 2020. This is the first time in the Indian history that almost all the opposition parties decided to boycott the President’s speech on the very first day of the session.
6. Discuss, Approve, and Pass
After the budget speech, Finance Minister tabled the Union Budget. Now, the discussion begins on Budget Speech in both houses of parliament, this discussion is quite interesting and entertaining, after that Finance Minister Responds to the raised points by members of Lok Sabha and Rajya Sabha. Now discussion ends, and parliament takes a break, but the process of approving Union Budget continues.
It is almost impossible to discuss on all Budget documents in Lok Sabha and Rajya Sabha. So, Standing Committees formed which inspect each Budget document and give a report or consensus to the Lok Sabha and Rajya Sabha.
It is also very difficult to discuss each report given by the Standing Committee. So, members choose main topics according to them. Now, break ends, and discussion starts, both houses discuss, but voting is done in Lok Sabha only and this voting is called Guillotine. After voting, budget is passed.
What If The Budget Is Not Passed?
It means the ruling party is in minority and loses its confidence vote. Now, the other parties have to overturn the ruling party. But this has never happened in the history of India.
History of Union Budget
The tradition of Budget started in 1860, the British Raj. After the war of Independence, 1857, military expenses of Britishers reach sky. So, to stabilize the economy, Scottish Economist James Wilson was invited to India. He started this tradition of Union Budget. James Wilson is the founder of today’s Standard Chartered Bank and The Economist Magazine.
On the day of Budget Speech, Finance Minister carries a Red Briefcase and poses in the front of parliament.
This is also a ritual that has been going on since the Britishers, a finance minister in Britain passes a red briefcase to another finance minister, but in India, the finance minister used to bring his own briefcase. In July 2019, Nirmala Sitharaman carries her budget documents in LAL BAHI KHATA, which was fitted with a national emblem and was packed with ribbon, and here he brought the Indian Tradition not following the British ritual.