An overview of the Union Budget Speech – Expectations and Highlights

In February, people would stay glued to their Television sets for listening to Budget Speech of the Finance Minister, presented in the Lok Sabha Session. Budget 2011 is expected to bring in great relief for the international trading Communities. Foreign traders of the country and even those based in foreign countries who are trading with us, are waiting impatiently for the amendments in the Excise Tariff and Customs Tariff-2011.

While all of us impatiently wait for the latest budget 2011 session, let us review the Union Budget of the country in General:

Overview
Every year on the last working day of February, the Union Budget of India is presented by the Finance Minister of the Country in the Parliament. This announcement holds great promises as well as disappointments for the citizens of the country. Budget Speech is not only awaited by the business tycoons, importers and exporters, but the common people also wait for it. Lives of each and every individual are affected with the country’s budget announcements.

Origin and History
Finance Minister Sir R.K. Shanmugham Chetty was the first to present the country’s first Budget Speech right after the independence of the country on 26th November 1947. During the initial phases of the country’s economical development greater stress was laid on the agricultural sector but as later on, the focus shifted to other sectors such as industrialization, textile Industry, financial sector, import export sector and other sectors.

Passing of Budget
First of all it is prepared by the Finance Minister and his associates. Then it is presented in the Parliament for approval. Only after the approval of the majority members of the Parliament, it is finally brought into effect from 1st April, beginning of new financial year. The parliament members have an entire month to review and approve new amendments in the Financial Planning proposed by the Minister. In case the discussions are not over until the commencement of the New Financial Year, the budget as proposed by the minister of finance goes into effect. Though, it is subject to modifications after the parliamentary review.

State Level Budget
Besides the Union Budget that is prepared by the Central Government Ministers, every state of the country prepares their individual financial planning by the State’s Finance Minister under the guidance of appropriate Central Government Officials. Similar to the Central Union Procedure, the State Level Budget has to be reviewed and approved at the State Legislature.

Presented in this article is an overview of the country’s Budgeting process. For more information about the New India budget 2011, you can refer to Infodrive India, a leading database website of the country. Simultaneous to the announcement, it will hold detailed sections on the Excise Tariff and Customs Tariff-2011.

Jayden William is an expert author who has written many articles on International Trade and Business. He is providing usefulinformation on Customs Tariff-2011 and New Amendment in Custom duty-2011