Budget 2024-25: Meet the Finance Ministry architects working on the Interim Budget this year

Interim Budget 2024: Union Finance Minister Nirmala Sitharaman is all set to present the Interim Budget 2024-25 ahead of the Lok Sabha elections scheduled later this year. The Union Budget is prepared annually by the Department of Economic Affairs, which operates under the Union Ministry of Finance. 

After various layers of discussions with different departments, economists and stakeholders, the Budget document is prepared and is subsequently presented by the Finance Minister in the Lok Sabha. 

The annual Budget statement serves as a fundamental financial blueprint established by the governing administration, outlining projected government earnings and expenses for the forthcoming fiscal year.

But this year, an Interim Budget will be presented by the ruling government in Parliament. The current ruling government tables the Interim Budget when there is insufficient time to present a complete budget or when elections are due in the same year. Typically, it is the incoming government that is responsible for formulating the full budget.

There are mainly five crucial steps in compiling the Budget statement, which is handled by different departments in the Finance Ministry.

According to the Finance Ministry, the process of creating the budget begins with the issuance of a Budget Circular. This typically occurs in September, when the circular, signed by the Joint Secretary (Budget division) in the Finance Ministry, is distributed to various ministries.

After many layers of discussions and estimate compilation, the Union Budget statement is drafted, which is led by the top bureaucrats in the PMO and the Finance Ministry.

The key members involved in budget making are Revenue Secretary Sanjay Malhotra, Ajay Seth, Secretary of the Department of Economic Affairs, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management, Vivek Joshi, Secretary of the Department of Financial Services, TV Somanathan, Finance Secretary, V Anantha Nageswaran, Chief Economic Advisor, and FM Nirmala Sitharaman.

Besides them,  P K Mishra, Principal Secretary to the PM and four additional secretaries to the PM including Arvind Shrivastava, Punya Salila Srivastava, Hari Ranjan Rao and Atish Chandra are also closely involved in the Budget preparations, a report in Moneycontrol said.

FM Sitharaman will be presenting her sixth straight Budget for fiscal year 2024–25, but as mentioned above the full Budget will be tabled after the Lok Sabha Elections scheduled for May 2024.

Finance Secretary Somanathan oversees the expenditure department and provides guidance to the Finance Minister on financial allocation. He has played a crucial role in implementing significant government initiatives, such as Atmanirbhar Bharat.

Chief Economic Advisor V Anantha Nageswaran tracks and monitors the health of the economy, with his analysis being documented in the Economic Survey. The Budget is then based on his report.

Ajay Seth, Secretary of the Department of Economic Affairs, looks after the Budget Division, which is responsible for compiling all the inputs and finalizing the financial statement. The department plays a crucial role in creating the budget.

Tuhin Kanta Pandey is in charge of determining the government's investment strategies and decisions. In the past, he played a crucial role in successfully selling the national carrier, Air India, and listing the national insurer, LIC.

Vivek Joshi looks into the government’s reform agenda for state-run financial institutions and guides with policies, schemes, and legislations that are related to the banking sector. He is a board member of the Reserve Bank of India (RBI).

Sanjay Malhotra, Secretary of the Department of Revenue, looks into tax rationalisation and direct tax regime simplification. Previously, Malhotra has worked in various sectors like finance and taxation, power, industries, and Information technology.

Interim Budget 2024

The interim budget serves as a temporary measure to ensure the smooth functioning of the government and the country's economy during this transitional period. Under the interim budget, the ruling government focuses on maintaining essential services and meeting urgent financial obligations. It outlines the estimated revenue and expenditure for the upcoming months until a full-fledged budget can be presented.

Earlier, FM Sitharaman had clarified that the upcoming February 1 budget will primarily serve as a vote on account. She emphasised that the budget will refrain from any "spectacular announcements”.

"I am not going to play a spoilsport but it is a matter of truth that the February 1 budget will just be a vote on account. We are in an election mode and the election happens during the coming summer. So, the budget that the government presents will just be able to, or will just be a budget to meet the expenditure of the government till a new government comes into play," Sitharaman said at the CII's Global Economic Policy Forum 2023 in New Delhi.

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