Budget FAQ #1: What Is The Union Budget?

The Union Budget is an annual statement of the estimated expenditure and income in the coming financial year presented in the parliament by the finance minister. In other words, it's a statement of how much and how the government intends to raise and spend money in the next financial year (FY), along with modifications to the taxation structures of the government.

The budget is prepared by the Ministry of Finance, in consultation with other ministries of the government, with businesses and corporations and all other stakeholders in the economy.

The constitutional provision for the budget is listed in Article 112 and is referred to as the Annual Financial Statement. It also includes the budget allocated to each ministry in the current financial year, how much it has already spent and how much more funds they require. Before 2017, the railway budget was presented separately from the general budget, a 92-year practice that has been done away with by the Narendra Modi-led government in the budget of FY 2017 - 2018.

Typically, the Finance Minister presents the Union Budget before Lok Sabha before the start of every financial year. This year, Union Finance Minister Nirmala Sitharaman will present the budget for FY 2021 in Lok Sabha on February 1. The Budget Session of Parliament is scheduled to start one day before that - on January 31 - when President Ram Nath Kovind will address a joint session of Parliament. This session will go on till February 11, after which Parliament will go on a recess till March 2. The Budget session will conclude on April 3.