Pre-Budget

Subject – Polity

Context – Pre-budget consultation: Agri experts for MSP based on realistic cost, subsidised diesel

Concept –

Budget is the annual financial statement of a government which lays out fiscal roadmap for the country for the next one year. It is prepared by the ministry of finance in consultation with Niti Aayog and other concerned ministries.
The Budget division of the department of economic affairs (DEA) in the finance ministry is the nodal body responsible for producing the Budget.
Budget-making process starts in August-September, that is, about six months prior to its date of presentation.
It needs to be passed by both houses of Parliament before beginning of the financial year, that is, April 1.
The finance minister holds pre-Budget meetings with various stakeholders to know about their proposals and demands. These stakeholders include state representatives, bankers, agriculturists, economists and trade unions.
Once the pre-Budget consultations are done, the finance minister takes the final call on all demands. It is also discussed with the Prime Minister before finalisation.