INDIA'S BUDGET : BALANCING THE BOOKS AND MEETING PEOPLE'S NEEDS

 

The government budget of India is the annual financial statement that presents the government's revenue and expenditures for a fiscal year , which runs from April 1st March 31 st . The budget is presented by the finance minister to the parliament on the last working day of February. The budget outlines the government's plans for the coming fiscal year, including its spending and taxation policies.

The government 's income come from different sources including taxes, duties, fees , and other charges. The government 's expenditures include spending on various programmes and services , such as education, health care defense , infrastructure and social welfare. The budget also induces provision for debt repayment and other financial obligations.

One of the key goals of the government budget is to ensure that the government has sufficient funds to meet its commitments and carry out its policies . In addition , the budget serves as a tool for the government to allocate resources and pursue its economic and social objectives.

Article 112 of the constitution of India mentions the budget, This article states that the president shall cause to be laid before both houses of parliament , at the beginning of each financial year, a statement of the estimated receipts and expenditure of the government of India for that year.

It is given as : "There shall be a budget for the Union which shall be an annual financial statement showing the estimates of the receipts and expenditure of the government of India for that year."

The government budget process in India involves several steps, including the formulation of budget estimates , the presentation of the budget to parliament , and the discussion and approval of the budget by parliament, The budget is then implemented by the government throughout the fiscal year.

Overall , the government budge plays a crucial role in the economic and financial management of the country , and is an important tool for shaping the direction and priorities of the government.

ISSUES

• Fiscal deficit.
• Inflation.
• Allocation of resources is a challenging task, as there are may be competing demands for funding and limited resources.
• Concerns related to transparency and accountability , issues like misallocation ,lack of proper accounting and auditing, inadequate oversight of budget implementation.
• It's impact on Economic growth, If budget is not well crafted it can hinder economic growth and development.
• If the budget does not adequately address the needs of the poorest and most vulnerable segments of society , it can perpetuate poverty and social exclusion.

WAY FORWARD

• Maintaining a fiscal discipline is important for the long term sustainability of the government finances .This can be achieved by keeping the fiscal deficit under control, reducing the governments debt burden and adopting sound financial management practises.
• The government should prioritize its spending in a way that maximises the impact of social and economic development. with its focus areas like education, health care infrastructure, and social welfare.
• Efficient resource utilization.
• Increase Transparency and accountability.
• Increased participation of stakeholders .
• Importance for economic growth along with reducing poverty and inequality.