Budget Process & Constitutional Framework: Explain the constitutional and statutory framework governing the presentation of the Union Budget in India. How has the budget calendar e

Introduction:

Article 112 of the Constitution mandates the presentation of the Annual Financial Statement, forming the core of India’s budgetary process.

Body:

The constitutional framework governing the Union Budget is laid down in Articles 112–117. Article 112 provides for the Annual Financial Statement, while Article 113 deals with voting on Demands for Grants by the Lok Sabha. Article 114 provides for the Appropriation Bill, authorizing withdrawal from the Consolidated Fund of India. Article 110 defines Money Bills, ensuring that taxation proposals fall under the exclusive jurisdiction of the Lok Sabha, and Article 117 mandates prior Presidential recommendation for financial legislation. Further, Article 266 ensures that all revenues are credited to the Consolidated Fund, and no expenditure is incurred without parliamentary approval. The statutory framework is supplemented by the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which mandates fiscal discipline, deficit targets, and transparency through statements like the Medium-Term Fiscal Policy.

The budget calendar has undergone notable changes in recent years. Since 2017, the Budget has been presented on February 1 instead of the last working day of February to enable timely approval before the financial year begins. The merger of the Railway Budget with the General Budget in 2017 ended a colonial-era practice and streamlined fiscal planning. Additionally, the adoption of a paperless Budget since 2021 and increased use of digital platforms have improved transparency and efficiency in the process.

Conclusion:

Going forward, strengthening parliamentary scrutiny, improving outcome-based budgeting, and aligning fiscal policy with long-term developmental and sustainability goals will enhance the effectiveness of India’s budgetary framework.