Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?

This question was previously asked in
UPSC Civil Services Exam (Prelims) 2010
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  1. Department of Revenue 
  2. Department of Economic Affairs 
  3. Department of Financial Services
  4. Department of Expenditure

Answer (Detailed Solution Below)

Option 2 : Department of Economic Affairs 
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Detailed Solution

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The correct answer is Department of Economic Affairs.

Key Points

  • Union Budget:
    • Article 112 to the Indian Constitution defines the term 'Financial Statement' also referred to as the Union Budget.
    • It is the statement of the estimated receipts and expenditure of the government for that particular year.
    • It is now presented on the 1st of February instead of the last day of February so that sufficient time is there for the budget provisions to get materialized.
    • 2017 onwards, the Railway Budget got merged with the Union Budget.
    • The responsibility of the budget is given to the Budget Division of the Department of Economic Affairs in the Finance Ministry.
  • Department of Economic Affairs:
    • This is the nodal agency for formulating the economic policies and programs of the Union Government that influence the domestic and international aspects of economic management.
    • The most significant role of the department is the preparation of the Union Budget.

Additional Information

  • Department of Revenue:
    • This department looks into the matters relating to the Direct and Indirect Union Taxes.
    • The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) works under the supervision of the Department of Revenue.
  • Department of Financial Services:
    • The financial services provided by the institutions like banks, insurance companies, etc. come under the Department of Financial Services.
    • The Pension Fund Regulatory and Development Authority (PFRDA) works under the supervision of the Department of Financial Services.
  • Department of Expenditure:
    • It is the nodal agency for supervising the Public Financial Management System (PFMS) and matters connected with the finances.
    • The National Institute of Financial Management (NIFM), Faridabad is under the administrative control of the Department of Expenditure.

Important Points

  • All the departments mentioned above come under the Finance Ministry of the Government of India

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