New Delhi: The Finance Ministry kick-started the budget-making exercise for Union Budget 2021-22 this week and the first round of pre-budget meetings with the secretary expenditure is slated to begin on October 16, according to the budget circular issued on Thursday.
The Budget Division of the Department of Economic Affairs has asked all the ministries and departments to prepare the budget, expenditure trend and details of non-tax revenue receipts for FY 2021-22 and forward it to the Budget Division by October 9.
The budget-making exercise for the Union Budget 2021-22 has started under the shadow of COVID-19 global pandemic that has decimated the world economy, particularly hitting hard the country’s economic growth, which shrank by nearly 24% in the first quarter of the current fiscal.
The Budget Division also advised all the ministries and departments that allocation would be made on the basis of the fiscal health of the government.
Centre's Fiscal Health to determine money allocation
“In the special circumstances of this year, the basis of final budgetary allocation will be the first and foremost overall fiscal position and subject to the absorptive capacity of the ministry, department,” Rajat Kumar Mishra, Joint Secretary (Budget) said.
The budget-making exercise will also involve the preparation of the Revised Estimates for FY 2020-21, along with the Budget Estimates for the next financial year.
In her first full year budget presented in February this year, finance minister Nirmala Sitharaman estimated the total expenditure of Union Budget to be Rs 30.42 lakh crore while the total tax collection (net to the Centre) was estimated to be Rs 16.36 lakh crores, non-tax revenue to be Rs 3.85 lakh crores.
She also estimated that she will get Rs 2.1 lakh crore through disinvestment and other receipts with the borrowing and other liabilities estimated to be Rs 7.96 lakh crores.