According to Indian Constitution A budget is an annual financial statement of the estimated receipt and expenditure of the Government of India of our state government in respect of a financial year
- Preparation of the budget:- The financial year of the union budget commences from 1st April of each year and and on 31st March of the following are the finance minister is responsible for forming the budget of the union government further the respective Finance ministry is responsible for framing the budget of the state since India has a Federal government set up the central and state government prepare their budget separately The Ministry of Finance is help in this task of framing the budget by administrative minister and department audit department Planning Commission Central Board of Direct taxes and Central Board of Excise and Customs the general rule is that one who spend the money must also prepare the estimate in advance has the primary estimates are prepared by the disbursing officer as per the guidance department are supplied With The Skeleton form on which they are asked to prepare the estimate the prescribed has the four different column actual estimate for the current year the revised estimate for the current year and the budget estimate for the next year is estimated by the head of the department for the estimated by the Ministry for scrutiny finally the finance minister consolidate all these estimate and prepare the budget for the present meant before the Parliament. revenue budget and capital budget and the constitution the budget in India is divided into two part revenue budget the revenue budget deal with the respect from the taxation public enterprise etc and the expenditure is made from these revenue revenue expenditure is for the normal running of the government expenditure which is made out of the revenue receipt is called revenue expenditure or expenditure on Revenue account capital budget the capital budget is the statement of all capital expenditure and the borrowing to meet it capital expenditure is made out of Capital Reserve
- presentation and enactment of the budget :- the budget is presented by the government before the parliament after the presentation of the budget that time and day for general equation is fixed by the speaker in the consultation as soon as a General discussion on the budget are over along with the reply of the finance minister the question arise of voting on the budget
- passing of the appropriation of Bill :- in the constitution of India it has been there done that no money can be appropriated out of the consolidated fund except in accordance with the law appropriation of has to be passed by the parliament
- passing of the finance Bill :-after passing of the appropriation bill finance bill is presented before the Parliament the finance bill was passed become the act which authorise the government to collect the required money to taxation or a provision that have been made in the budget
- execution of the budget :-after execution the responsibility to execute the budget with a high degree of integrity and efficiency the execution of the budget has three aspect collection of revenue property of collected fund distribution of Grand to different administrative Ministries or department
