On 29 February, finance minister Arun Jaitley will present the third budget of the National Democratic Alliance government that came to power in May 2014. The government is faced with the difficult task of reviving investment at a time when private investment is scarce and the finance minister is bound by his commitment to fiscal consolidation. The budget is the most keenly awaited policy document in India's economic calendar. It is not just a statement of accounts but a charter of the government's economic policies. Behind the budget document is a long and complex policy-making process. Here is an attempt to simplify the process and present the steps involved in making the budget, the factors and the people involved.
The process of discussions with various stakeholders and ministries starts much before the budget is presented. In September, the expenditure arm of the finance ministry starts exhaustive consultations with line ministries about receipts and expenditure numbers. Simultaneously, internal discussions are also held between the various arms of the finance ministry to finalize the spending priorities and revenue mobilization in line with the policy goals of the government.
Beginning late December, the government holds pre-budget consultations with experts and stakeholders, including agriculturists, economists, trade unions, non-governmental organizations, state representatives and bankers. These groups present their demands which include tax incentives, fiscal support or other steps required to provide a fillip to their sectors.
In this year's budget, Jaitley will face the daunting task of increasing public investments to revive economic growth while sticking to the government's fiscal consolidation road map. He will also have to look for ways to boost agriculture and address rural distress. The Prime Minister will also give his feedback to ensure that the budget reflects his government's priorities of being both pro-poor and pro-business.
The budget-making process is done under complete secrecy with media persons banned from North Block from the first week of January. The corridors of North Block are closely guarded by closed circuit cameras and Intelligence Bureau officials. All efforts are made to ensure that there is no breach in security in the run-up to the budget.
A week before the budget, officials closely involved in the budget-making process are completely cut off from the outside world. Such tight security measures have ensured that there have been no leaks. The budget documents are also printed in a press located in the basement of North Block.
Officers of the Press Information Bureau (PIB), the government's public relations arm, are pressed into operations two days before the budget. A team of PIB officials is tasked with preparing press releases in three languages - English, Hindi and Urdu. The officials are also held in confinement till the time the speech is delivered by the finance minister. The cabinet is shown a gist of the budget 10 minutes before the Parliament meets on budget day.
In arrangement with HT Syndication | MINT
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