The Ministry of Finance has initiated the budget-making exercise for the forthcoming fiscal year. The Ministry recently issued the Budget Circular 2021-2022 which contains necessary instructions and deadlines for submission of details by different central ministries and departments. This will be Finance Minister Nirmala Sitharaman’s third Budget.
According to the circular, pre-Budget meetings will begin from October 16 and will continue till the first week of November.
“In the special circumstances of this year, the basis of the final budgetary allocations will be first and foremost overall fiscal position, and subject to that the absorptive capacity of the Ministry/Department.” the circular said.
The budget estimates for 2021-22 will be provisionally finalised after Secretary (Expenditure) completes discussions with the Secretaries and Financial Advisers, it read.
The Finance Ministry further said that ceilings for all categories of expenditure, including Central Sector and Centrally-sponsored schemes will be discussed. “Accordingly, the Revised Estimates (RE) 2020-21 and BE 2021-22 for all categories of expenditure, and select schemes/projects, may be indicated separately for Revenue and Capital expenditure,” the circular said.
However, the final ceilings for the schemes will be decided separately by the Finance Ministry by January 15 after taking into account the resource assessment of the government and the available fiscal space.
The circular further said that the Union Budget of FY22 budget will contain the recommendations of the 15th Finance Commission, which is expected to submit its second and final report by end of October.
The Indian economy shrank record 23.9 percent during the April-June quarter this year, confirming fears of a crippling slide across several industries and services that are profusely bleeding due to COVID-19-induced disruptions. All estimates under the Union Budget for FY21 have been upended by the impact of the coronavirus pandemic.