What is the Indian Budget System?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The Indian budget system, or the Union budget, is delivered in the month of February every year. The Indian Finance Minister presents the country’s budget to the Lok Sabha. Because the fiscal year begins on 01 April, the Lok Sabha must approve the budget before it takes effect on that day. The Union Budget is completely described under Article 112 of the Indian Constitution.
Table of content
Indian Budget System
Cash basis accounting applies to government budgets. The government should have a single budget for all of its financial dealings.
- Budgeting should be done in gross terms rather than net terms.
- Gross transactions for each department’s receipts and expenses should be displayed.
- It is not authorized to deduct collection fees or other expenses from any department receipts.
- Budgeting should be precise.
- Guesswork and guesses should not be employed because they can result in major modifications and inefficient resource allocation.
Principles of the Indian Budget System
In Indian government budgeting, the following fundamental criteria are frequently followed for the Annual Principle. The budget should be developed on an annual basis, which brings us to the rule of lapse.
- The implementation of this legislation has resulted in an increase in spending in the last months.
- However, it has the advantage of enforcing the legislative sanction, which is always for a specified amount of time before it must be requested again.
- It implies that if approved funds are not spent by the end of the fiscal year, the unspent amount will expire.
Summary:
What is the Indian budget system?
The annual budget for India, popularly known as the Indian Budget System, was distributed on the last working day of February 2016. On 1 February, the Government of India unveiled its 2017 budget. It is the Indian Finance Minister who presents the budget of the country before the Lok Sabha every year in February.
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