The Union Budget of India is the annual financial statement presented by the Finance Minister in Parliament, outlining the government's revenue and expenditure for the upcoming fiscal year (April 1 – March 31). It is a crucial policy document that reflects the government's economic priorities, taxation policies, and social welfare plans.
Key Features of the Union Budget
- Presented on February 1 – The budget is presented on February 1 each year to allow for smooth implementation from the start of the fiscal year.
- Divided into Two Parts:
- Part A: Deals with overall economic policy, including allocations for different sectors like infrastructure, healthcare, education, and defense.
- Part B: Focuses on tax proposals, including changes in direct taxes (income tax) and indirect taxes (GST, customs duties, etc.).
- Prepared by the Finance Ministry – It is formulated after consultation with various ministries, stakeholders, and economic advisors.
- Parliamentary Approval – After the budget speech, it goes through discussions and approvals in Lok Sabha and Rajya Sabha, followed by implementation from April 1.
Types of Budgets
- Union Budget (Annual Budget) – Covers the entire economy.
- Railway Budget (Merged with Union Budget in 2017).
- Interim Budget – A temporary budget presented before general elections.
- Vote on Account – Grants temporary approval for government expenses if the budget is delayed.
Historical Facts
- The first Union Budget was presented by R. K. Shanmukham Chetty on 26 November 1947.
- Morarji Desai has presented the most budgets (10 times).
- Nirmala Sitharaman presented the first paperless budget in 2021.
The Union Budget plays a vital role in shaping India's economic policies, taxation structure, and welfare programs, making it one of the most significant annual financial events in the country.
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