Pre Budget process - Expenditure

The budget formulation process for the ensuing financial year (April-March) starts in the month of September of the current year.

September - October

1.) Finance ministry - Ministry

• Budget Circular from Budget Division of Ministry of Finance to Financial Adviser of each Ministry
• Ministries obtain the estimates of expenditure for the current year  (revised estimates) and for next year (budget estimates from organizations and units under their control
• Study of the estimates by the Ministry
• Further examination and processing by FA
• FA sent to Budget section to ministry of finance 

2.) Planning comission - State & Ministry

• the Planning Commission also addresses letters to different Union Ministries and State Governments seeking their annual plan proposals

November :-

• Discussion between secretary of expenditure , Ministry of finance and FA of department/ ministry
• Expenditure ceiling limits communicated to FA by Budgetary department ( Budgetary dept review demand of all departments and define limit for various Ministry ) -

December :-

            1.) FA of ministry prepared Statement of budget for both plan and no plan expenditure according to  ceiling limit and submit to budgetary department  ( for current year )

             2.) Aid Accounts and Audit (CAA&A) also send the estimates on external debt, repayment of external loans and other payments to budgetary division

January :-

• Planning commission decide the plan size
• Approve plan outlay for each ministry
• FA of ministry make statement of budget for plan expenditure ( For next year )
• Submit to Bugetary division