INTRODUCTION
Budget is a crucial component of public administration as it helps in the allocation of resources to various sectors and departments of the government. In India, the budget is prepared and presented by the Ministry of Finance and is approved by the Parliament.
The Indian budget can be broadly categorized into two types- Revenue Budget and Capital Budget. The Revenue Budget deals with the revenue receipts and expenditure of the government, while the Capital Budget deals with the capital receipts and expenditure.
The Revenue Budget includes items such as taxes, duties, and other revenue-generating measures, along with the expenditure on salaries, subsidies, pensions, and grants to various states and union territories. On the other hand, the Capital Budget deals with capital receipts such as loans, borrowings, and disinvestment, along with the expenditure on capital assets such as infrastructure development, acquisition of assets, and investments in public sector enterprises.
The Indian budget also includes provisions for various schemes and programs initiated by the government to address various socio-economic issues such as poverty, education, healthcare, and infrastructure development. The budget is a reflection of the government's policies and priorities, and it plays a crucial role in shaping the country's economic growth and development.
PREPARATION
- APPROVAL : The budget preparation process starts with the approval of the budget calendar, which outlines the key dates and milestones for the budgeting process. The budget calendar is approved by the cabinet or the finance ministry. The budget preparation process is then initiated, and various departments and agencies are assigned their respective roles and responsibilities.
- DRAFTING THE BUDGET : The next step in the budget preparation process is the drafting of the budget. The budget is prepared by the finance ministry in consultation with various departments and agencies. The budget is based on the government's policy objectives and priorities and takes into account the projected revenue and expenditure for the upcoming fiscal year.
- CONSULTATION WITH STAKEHOLDERS : During the budget preparation process, the government consults with various stakeholders, including civil society organizations, industry associations, and experts from various fields. This helps to ensure that the budget reflects the needs and priorities of different sections of society and is aligned with the overall goals of the government.
- ASSESSMENT OF PREVIOUS BUDGETS : Another important step in the budget preparation process is the assessment of previous budgets. The government reviews the performance of previous budgets and evaluates the effectiveness of various programs and policies. This helps to identify areas that need improvement and enables the government to make informed decisions about resource allocation in the upcoming budget.
- FORECASTING : The budget preparation process also involves forecasting the revenue and expenditure for the upcoming fiscal year. The government uses various tools and techniques to forecast revenue, such as analyzing economic trends, historical data, and tax collection trends. Similarly, the government forecasts expenditure by analyzing the projected demand for various programs and services and estimating the cost of delivering those programs and services.
ENACTMENT
- DISCUSSION AND DEBATE : After the budget is drafted, it is presented to the parliament for discussion and debate. Members of parliament have the opportunity to scrutinize the budget, ask questions, and propose amendments. This step is important as it enables parliamentarians to assess the budget's effectiveness and ensure that it is aligned with the overall goals of the government.
- COMMITTEE REVIEW : The budget is also reviewed by various parliamentary committees, such as the Standing Committee on Finance and the Public Accounts Committee. These committees examine the budget in detail, review its various components, and make recommendations for improvement. The committee review process ensures that the budget is thoroughly scrutinized and any shortcomings are identified and addressed.
- PASSAGE : Once the budget has been debated and reviewed, it is passed by the parliament. This step involves voting on the budget by members of parliament. The budget must receive a majority of votes to be passed. If the budget is not passed, it may be sent back to the finance ministry for revision.
- PARLIAMENTARY APPROVAL : After the budget is passed, it is sent to the president for approval. The president has the power to accept or reject the budget. If the budget is accepted, it is enacted and becomes law.
- IMPLEMENTATION : Once the budget has been enacted, it is implemented by various departments and agencies of the government. The finance ministry is responsible for monitoring the implementation of the budget and ensuring that it is executed in accordance with the approved plan.
CONCLUSION
In conclusion, the enactment of the budget in Indian public administration involves various steps, including discussion and debate, committee review, passage, parliamentary approval, and implementation. These steps ensure that the budget is thoroughly scrutinized and any shortcomings are identified and addressed before it is enacted. By following a systematic and transparent budget enactment process, the government can ensure that public resources are used effectively, efficiently, and equitably to meet the needs of the citizens.