The finance ministry will start exercise to prepare the Union Budget for financial year 2022-23 (FY23) from 12th October 2021, according to an official notification released.
As per the Budget circular of the Department of Economic Affairs’ Budget Division, “The pre-Budget meetings as well as the meetings to discuss the revised estimates will start from 12th October and will continue till the second week of November.” The Union Budget is expected to be announced on 1st February 2022.
The circular has said that the final budget will be prepared according to the overall financial position and absorption capacity of the ministry concerned, keeping in view the special circumstances this year. This time, the practise will involve the new ministry of cooperation. Finance secretaries of all Union territories have also been asked to prepare in advance a statement detailing all plan outlays.
Besides, internal meeting on crucial issues such as Gross Domestic Product (GDP), revenue and expenditure accounts, fiscal deficit, the finance ministry also meets corporate houses and other stakeholders for their views.
The Budget Estimates (BE) for FY23 will be provisionally finalised after the expenditure secretary completes discussions with other secretaries and financial advisers. The pre-Budget consultation will also point out the issue of fixing limits for all types of expenditure, including centrally-sponsored schemes, the circular stated.
“The final ceilings will be decided separately by the Ministry of Finance latest by 15th January, 2022, taking into account the resource assessment of the government and the available fiscal space,” the circular said. It is expected that the Revised Estimates for the current fiscal will be prepared based on the expenditure till November 2021. The practise will have to focus on accelerating economic growth, while maintaining fiscal prudence amid the threat of a third wave of the pandemic.