Union budget is a statement of accounts that shows how the finances were managed during the year. In order to know what is the union budget, you have to know how the finances are managed in the country. Union budget helps to understand the financial condition of the country and the state of finance in general. Union budget of India, also known as the annual financial statement in article 112 of the constitution of India, is an annual statement of accounts that shows how the finances were managed during the year. The Government presents it to the Parliament on the first day of November so that it can be presented to the members of both chambers of Parliament for discussion and approval.
Union budget is prepared after estimating the total income, total expense, surplus or deficit, as decided by the members of parliament, banks and other financial institutions of India. After estimating the financial position, the budget is prepared for free trade and for submission to the Reserve Bank of India for clearing it before release to the public. After preparing the budget, it is released to the market for auctioning or purchasing. Union budget is published by the Finance Ministry and the Finance Secretary. The Secretary may issue orders to the Reserve Bank of India for making payment to the banks for clearing the liabilities.
What is Union budget? What is Union budget meant to tell us about the current financial condition of the country? Union budget is a statement of financial records that helps to understand the actual condition of finances of the country. This budget is prepared by the Finance Ministry after consulting the banks submit their balances to it for preparation. The Union Budget is prepared at the end of a financial year, or at the time of the end of each fiscal year.
The Union budget is a statement of the financial condition of the Union Government and is prepared in line with the financial records of the Union Government. The Union budget has a single economic objective – to enable a stable and stronger economy. The Union budget is prepared for release every thirty days, and forecasts are provided for all financial years.
How do you prepare and release a Union budget? Union Finance Minister is asked to prepare a draft budget by getting the opinion of banks and other financial institutions and to submit it to the finance ministry for approval. A copy of the Union budget is submitted to the President of the Republic for submission. After approval of the Union budget, Union Finance Minister submits it for release along with the other financial documents that are required to be given to the banks or other financial institutions for clearing.
The budget is released and published to the general public along with the approved Union Budget. It is required to be passed by the legislature of each state where there is a national assembly. If the budget is passed by the legislature, Union members are notified about it. Union members need not be present to approve the budget. When Union members are present to ratify or reject the budget, the presiding officer calls up each of them and asks for their views regarding the budget.
What is Union Budget? Union budgets are not an easy task to understand, because in each state, the Union Governments is funded in different ways. For example, in West Virginia, the General Assembly pays the General Manager and the President, whereas in Kentucky, the budget goes into the General Finance Committee, which is controlled by the Speaker of the House of Representatives and the Senate Majority Leader. This makes it difficult for the Union members to have their say about Union Budget.
There are a number of financial experts who have published books and articles about Union finances. One can also go through the financial statements of Union Governments and understand their financial problems and failures. This is why reading Union budget information is always better than spending your money on a budget that is not correct.