Budget 2025: How is a budget passed in the Parliament?
Producer: Bhaswati SenguptaJanuary 22, 2025
Finance Minister Nirmala Sitharaman will present the Union Budget for the upcoming financial year on February 1, 2025. Take a look at how the Budget is passed in the Parliament.
Budget Presentation
The Finance Minister presents the Union Budget, which includes the Demand for Grants. The Budget outlines the estimated expenditure of the central government for the upcoming year.
Departmental Demands
Demand for Grants, is a formal request for funds, made by each ministries, providing an estimate of its expenses. The demands are examined by several Parliamentary Committees, who recommend modifications or cuts.
Discussions And Approvals
The Lok Sabha MPs discuss the merits and particulars of the demand. The Lower House must approve each demand and also has the power to assent, reduce, or reject.
Voting On Demands For Grants
The Lok Sabha votes on the demands for grants during the financial process based on Parliament’s Departmental Standing Committees report. After the vote, a Demand for Grant turns in Grant.
Guillotine
All the demands for grants cannot be discussed in the Lok Sabha due to time constraints. The Speaker applies a ‘guillotine,’ meaning all outstanding demands are put to vote at once, without discussion.
Passing Of The Budget
After the demands for grants are approved, they become a part of the Appropriation Bill. Once passed, the bill allows the government to withdraw funds from the Consolidated Funds of India to meet its expenses and liabilities.
Passing Of The Finance Bill
The Finance Bill refers to the legislation to implement the Centre’s financial plans for the upcoming fiscal year. It also lays out supplementary budgetary scheme for any duration. After President’s approval, the Bill becomes Finance Act, which legalizes the Budget’s income side, and concludes the entire process of the passing and enactment of the same.