Budget

Budget Budgetary Cycle In order to allow time for the executive and legislative processes to go through, budgeting is geared to a cycle. The process of approval is very significant in are possible form of government. The cycle consists of four phases: Preparation and submission; Approval; Execution; and Audit At any given point of time, several cycles would be in operation and would be over lapping. Nevertheless, various segments of a cycle have different operational life. Budget Preparation In India, budget preparation formally begins on the receipt of a circular from the Ministry of Finance sometime during September/October, that is, about six months before the budget presentation. The circular prescribes the time-schedule for sending final estimates separately for plan and non-plan, and the guidelines to be followed in the examination of budget estimates to be prepared by the department concerned. The general rule is that the person who spends money should also prepare the budget estimates. Budget proposals normally contain the following information: i) Accounts classification ii) Budget estimates of the current year iii) Revised estimates of the current year iv) Actuals for the previous year; and V) Proposed estimates for the next financial year. Financial Year When the first modern budget was presented in , the financial year adopted by the government was from 1st May to 30th April. Beginning with the year , however, the financial year was changed to st April to st March, in conformity with the practice in England. ( . . Tax Structure in India