ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The budget contains estimates of federal government income and spending for the upcoming fiscal year and also recommends funding levels for the federal government. Congress then must pass appropriations bills based on the president’s recommendations and Congressional priorities.

Detailed explanation-2: -The Indian Union Budget is prepared by the Ministry of Finance in consultation with Niti Aayog and other concerned ministries. Also, the Budget division of the department of economic affairs (DEA) in the finance ministry is the nodal body responsible for producing the Budget.

Detailed explanation-3: -The Process Common processes include communication within executive management, establishing objectives and targets, developing a detailed budget, compilation and revision of budget model, budget committee review, and approval.

Detailed explanation-4: -The budget has four stages viz., (1) estimates of expenditures and revenues, (2) first estimate of deficit, (3) narrowing of deficit and (4) presentation and approval of budget. The process begins with various ministries providing initial estimates of plan and non-plan expenditures.