Saturday, March 7, 2009

Budget of India

Divine Interception believes in promoting the right to speech that Indian constitution provides every Indian with, and as a testimony to the same, we know present you with Poonam Thanvi, the first guest blogger on Divine Interception.

A budget is an itemized summary of probable expenses and income for a given period. References to budget can be found in Kautilya's Arthashastra. It states:

"Chancellor should first esimate revenue from each place and sphere of activity under different heads of accounts and sphere of activity under different heads of accounts
and then arrive at a grand total"

The below link from Wikipedia can be useful for getting gist of Arthashastra.

The term budget has been derived from the old French word "bougette", which means a leather bag or wallet. Initially, budget referred solely to the Chancellor's annual speech on the nation's finances. Now, the term is used for annual financial statement of income and expenditure of a government.

Indian Budget is one of the biggest budget presented by Union Finance Minister. The FM is made responsible by the President Of India to prepare the "Annual Financial Statement" or the budget, and present it in the Parliament every year on 28th Feb or last working day of February.

Indian Budget was previously declared at 5 pm, but since 1999 General Budget is being presented at 11 am.
Normally Budget-making starts in the 3rd quarter of the Financial year.
Indian Budget has four stages:
  1. Estimates of Expenditure and Revenues.
  2. First estimate of Deficit.
  3. Narrowing of Deficit.
  4. Presentation and approval of Budget.
When signed by President of India, Bill becomes an Act.
FM is assisted by number of advisors and bureaucrats. Various accounting and finance related organizations send in their opinion and suggestions.
The main players in Formulation are:
  1. Ministry of Finance
  2. Administrative Ministries
  3. Planning Commission
  4. Auditor General.
Thank you Poonam, that was one informative post. I hope you keep writing for Divine Interception, and all you readers keep encouraging her!

Want to write as well?! Mail me your entry on


Shaurya Srivastava said...

Really it was an informative one,,,,,,Simple n Sweet,,,,,And I understood each and everything,,,,,She actually made me literate finally,,,,,,,Vineet its really very nice of you to let others also post on your blog,,,,,,Good Opportunity!!! So people join this one and keep writing to Vinit Thanvi and I am sure it will be posted here,,,,,,,,Well done Poonam!!! n u too Vinit for such good opportunities,,,,,,,This post is remarakable to all and especially to the history of ClonedToSay,,,,,First Guest Post,,,,Nice One!!! Best of luck!!! My regards to all!!!

Ankit Poddar said...


good work ya! certainly one of the better posts i have come across on budgets!

though almost every body talks about what happened in the year's budget, very few take in to account the technicalities behind them!

waiting for you to write a guest post for All Padded UP

Anonymous said...

Nice post! Pls keep it up... :)