InvestorQ : How is a budget being passed in parliament?
Niharika Kamble made post

How is a budget being passed in parliament?

Nikita Damle answered.
1 year ago
Every year, the Indian Finance Minister announces the Union Budget that provides a roadmap of the capital expenditure and various other policies targeted towards the holistic growth of the Indian economy. The Finance Ministry prepares it in consultation with NITI Aayog and other Indian Ministries. Within the Finance Ministry, the budget division of the department of economic affairs (DEA) is the nodal body responsible for producing the Union Budget.

Once the budget is prepared, it is tabled in the parliament for enactment and legislation. Post-announcement, it is followed by discussions over the economy as well as broad measures on the budget. Afterward, Parliamentary Standing Committees demand grants and provide resources on the ministries’ estimates. However, the parliamentarians have the option to move cut motions if they want some cuts in the grants announced in the Union Budget to the ministries.

It is followed by the process of guillotining, in which if the demand for grants is not voted till the last day of the session, then it is ‘guillotined’, meaning that the discussion is ended. Afterward, the appropriation bill is passed in the parliament and is voted upon. If the appropriation bill is passed, no amendments could be made to the bill, either in Rajya Sabha or Lok Sabha.
Now, the bill is sent to the President for approval. Once it gets the President’s approval, the bill becomes an Act, and the included policies and expenditures are liable to be implemented from 1st April.