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The Union Budget is a statement of the Central government’s annual accounts for the forthcoming financial year that starts April 1. It contains details about the government's projected receivables and payables for that particular financial year. It also states how much the government will spend on its schemes, on defence, salaries of its employees and how its going to finance its expenditure.
The Union Budget is a significant financial event that impacts the lives of every citizen as it lays down the government’s financial policy positions pertaining to economic growth, allocation of resources, borrowing, taxation, subsidies, and more. The objective of the Union Budget is to spur economic growth, reduce income inequality and unemployment, and promote equality and social justice for all.
The Budget division of the department of economic affairs in the finance ministry is responsible for preparing the Budget. The DEA is headed by a secretary (an IAS officer). The present Reserve Bank of India Governor Shaktikanta Das was Secretary, DEA, before his retirement. He was later appointed to his current post.
The 2025 Budget, which sets the economic agenda for the financial year 2025-26, will be presented on 1st February 2025.
The Union Budget is presented by the Finance Minister of the country. As the current FM of the country, Mrs. Nirmala Sitharaman will present this year’s Union Budget.
The budget can have a large impact for individuals and businesses in multiple ways.
For Individuals – Changes in taxation on income, investments, and expenses, social welfare, infra development, employment and job creation.
For Businesses – Changes in corporate taxation, infra development, sector-specific incentives or subsidies, and regulatory changes.
Furthermore, there are a few common impact areas such as impact on inflation, GDP growth, changes to interest rates, and currency fluctuations.
The Union Budget outlines the trajectory of the larger economy, which also heavily impacts investor sentiment, and by extension, the stock market as well. There are a variety of ways a budget can impact the stock market, here’s an article that summarises how a budget can impact the stock market.
In simple words, a government budget is a comprehensive financial plan that outlines the projection of the central/state government’s revenue (like corporate tax, income tax) and expenditure (like healthcare spending, education spending, social benefits) for a financial year. The government implements its economic policy through the budget.
And while the Union Budget is also a type of government budget, a government budget is a more generic term, which may also be used to describe a budget prepared by a local or State Government. However, the Union Budget is only prepared by the Central Government.
An economic survey is a detailed document that reviews a country’s economic performance over a specific period, usually a financial year. In addition to assessing a country’s economic performance, an economic survey also helps:
The Finance Bill is a part of the Union Budget that outlines the government’s financial policy on key fronts such as taxation, revenue generation, fiscal policy, social welfare allocation, and broader economic reforms.
R.K. Shanmukham Chetty, who presented independent India’s first ever budget (on 26th November 1947), is known as the Father of the Union Budget. He served as India’s first finance minister.
As per Article 77(3), the Finance Minister is responsible to prepare and present the annual financial statement, which is commonly known as the Budget.
R.K. Shanmukham Chetty - who served as independent India’s first finance minister – presented India’s first ever Union Budget on 26th November 1947, shortly after it gained independence.
As far as budget speeches are concerned, the Union Budget speech of 2020, presented by Nirmala Sitharaman, holds the record for being the longest budget speech on record. The marathon speech lasted for 2 hours and 42 minutes.
But when it comes to the longest budget speech in terms of word count, that record is currently held by Dr. Manmohan Singh, who presented the epochal 1991 Budget speech, which had a word count of a whopping 18,650 words.
The Finance Minister presents the Union Budget in the Lok Sabha.
A total of 87 Budgets have been presented thus far, of which 73 have been full budgets while 14 have been interim budgets.
The Union Budget is presented in the Lok Sabha.
The current Finance Minister of India is Mrs. Nirmala Sitharaman. She assumed office in May 2019, succeeding Mr. Arun Jaitley.
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