Stages of Passing of the Budget

• The origin of the word, ’budget’ goes back to old French word ‘baguette’ which means a pouch or a bag/briefcase.
• The presentation of the budget, traditionally involved carrying the budget documents in a leather bag/briefcase.
• Budget is a statement of the Government’s estimated receipts and expenditure in a financial year starting from April 1st and ending on March 31st
• Officially, it is known as Annual Financial Statement, the term budget is not used in the Constitution.
• Budget Division of Department of Economic Affairs under the Ministry of Finance is responsible for preparation of Budget.

• From 2019 onwards, the tradition of carrying the budget documents in a briefcase has been discontinued.
• The Finance Minister now carries the budget documents in a four-fold red cloth called 'Bahi Khata' or a traditional ledger. 
• The Government had decided to merge Rail Budget with the Union Budget from budget year 2017-18. The merger of Railway Budget with General Budget is based on the recommendations of the Committee headed by Bibek Debroy.
• Previously, based on the recommendations of the Acworth Committee, separate Railway Budget was started since 1924. The practice continued for 92 years 

The Constitution contains provisions of Annual Financial Statement under Article 112 of Part-V. 

Stages of Passing of the Budget: 

1. Presenting of Budget : The Finance Minister presents the Budget with the Budget Speech in the Lok Sabha. After the speech in Lok Sabha, budget is presented before the Rajya Sabha. The Rajya Sabha can only discuss the budget, has no voting right.
2. General Discussion : After a few days of presentation of budget, general discussions start in both the houses on any question of principle or budget as whole but no cut motion is moved. The  minister responds at the end of the discussions, no voting is done.
3. Scrutiny: Post General Discussion, for next 3-4 weeks, the 24 departmental standing committees conduct in-depth, comprehensive, close and detailed examination and discussions of the demands for grants and prepare reports on them. These reports are laid before both the houses of the parliament
4. Voting on Demands for Grants : Based on the reports from previous stage, members discuss the details of the budget and can move cut motions to reduce any demand for grant. Duly voted demands become grants. Only Lok Sabha votes that too only on votable part of the budget as the expenditure charged on Consolidated Fund of India is not voted upon, it can only be discussed.
5. Passage of Appropriation Bill : Appropriation of money from Consolidated Fund of India is possible only by enactment of Appropriation Bill, hence this bill is passed by parliament. But this process takes time usually beyond the end of financial year, therefore, the constitution provides for 'Vote on Account' (for 2 months) which is granted after the general discussion on the budget is over.
6. Passage of Finance Bill : The enactment of this bill legalises the financial proposals of the GoI and completes the process of enactment of Budget. Amendments to the Finance Bill are possible. Enactment of the Finance Bill must not take more than 75 days as per the Provisional Collection of Taxes Act of 1931.

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