The Finance Ministry will begin the budgetary process on October 12th

The Ministry of Finance will start to construct the 2022-23 annual budget, starting on 12 October, with indicators that the Indian economy is recovering and is being severely affected by COVID-19. The following year’s budget will have to tackle crucial concerns such as demand generation, job creation and a sustained 8% growth plus economic growth.

According to the Department of Economic Affairs Budget Division’s Budget Circular (2022-23) dated September 16, 2021, “the pre-Budget/RE (Revised Estimate) meetings will commence on October 12, 2020.”

“All financial advisers should ensure that the essential facts linked to these discussions are included in the RE module of the UBIS (Union Budget Information System),” according to the circular.

After the spending secretary completes negotiations with other secretaries and financial advisers, the Budget Estimates (BE) for 2022-23 will be provisionally finalised.

Pre-Budget meetings will begin on October 12 and last through the second week of November, according to the statement.

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“Given the unique circumstances of this year, the final budgetary allocations will be based on the overall fiscal condition, subject to the ministry/absorptive department’s capacity,” it said.

Ceilings for all areas of spending, including the central sector and government-sponsored initiatives, will be discussed, according to the statement.

As a result, it said that the RE 2021-22 and BE 2022-23 for all categories of spending, as well as select schemes/projects, may be expressed separately for revenue and capital expenditure.

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It stated that the budget estimates for 2022-23 are as follows: “The allocations for the establishment and other central government expenditures will be finalised. During the pre-budget meetings, proposed ceilings for Central Sector (CS) and Centrally Sponsored Programs (CSS) schemes would be considered.”

The Budget for 2022-23 is expected to be delivered on February 1st, during the first part of Parliament’s Budget Session, which typically begins in the last week of January each year.

In actual terms, the budget for the current fiscal year forecast a growth rate of around 10.5%, with a fiscal deficit of 6.8% of GDP (GDP).

The government of Prime Minister Narendra Modi abolished a colonial-era practise of presenting the Budget towards the end of February. On February 1, 2017, then-finance minister Arun Jaitley delivered the annual accounts for the first time.

When the Budget was delivered at the end of February, the three-stage Parliament approval procedure used to be completed around mid-May, weeks before the monsoon rains started.

This meant that government departments would only begin investing on projects once the monsoon season ended in late August or early September.