JAGRAN YOUTH

PARLIAMENT

A GUIDE TO BUDGET MAKING

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A JYP GUIDE TO BUDGET
WHAT IS THE ROLE OF STATE AND
GOVERNMENT IN PEOPLE’S FINANCIAL
LIVES?
WHAT DO WE MEAN BY A WELFARE
STATE?
WHAT ARE THE THREE DIFFERENT
SECTORS OF OUR ECONOMY?
WHAT DO WE MEAN BY ECONOMIC
SURVEY?
WHAT DO WE MEAN BY
LIBERALIZATION AND GLOBALIZATION?
WHAT IS THE COMPOSITION AND ROLE BUDGETS DIFFERENT?
OF FINANCE MINISTRY?
STEP 1: BUILD YOUR
UNDERSTANDING ON WHAT IS
UNION BUDGET
WHO ACTUALLY MAKES THE
BUDGET? WHAT IS THE ROLE OF
HOW FUNDS FOR EDUCATION, HEALTH,
DEFENSE, AGRICULTURE ETC ARE
FINANCE MINISTER? DECIDED?
HOW ARE THESE FUNDS PRIORITIZED?
WHAT IS THE ROLE OF OTHER
WHAT IS GDP? WHAT IS PER CAPITA
MINISTERS? WHAT IS THE ROLE OF INCOME? WHAT IS FISCAL DEFICIT?
WHAT ARE PLAN AND UN-PLAN
THE PRIME MINISTER? EXPENDITURES?
WHAT IS HUMAN DEVELOPMENT INDEX?
HOW ARE THE UNION AND STATE WHAT IS SUSTAINABLE DEVELOPMENT?
WHAT ARE DIRECT AND INDIRECT
TAXES?
 STEP 1: BUILD YOUR
A JYP GUIDE TO BUDGET UNDERSTANDING ON WHAT IS
UNION BUDGET

WHAT DO I KNOW ABOUT

INTERNATIONAL MONETARY FUND?
WHAT DO I KNOW ABOUT INCOME
TAX, SERVICE TAX, VAT, GST ? WHAT DO I KNOW ABOUT THE
STEP 1 IS
WORLD BANK?
THINK BIG
WHAT IS MEANT BY TAX REFORMS?
HOW MUCH LOAN DOES INDIA THINK OF THE
HOW ARE GOVERNMENT
HAVE?
WHAT DO I KNOW ABOUT BALANCE
WHOLE
PROGRAMMES LIKE START-UP INDIA,
DIGITAL INDIA, MAKE IN INDIA, CLEAN OF PAYMENT? COUNTRY
INDIA ETC? WHAT INDIA IMPORTS AND FROM
WHOM? ITS NOT A SANTA
WHAT INDIA EXPORTS FROM WHOM? CLAUSE JOB
 A JYP GUIDE TO BUDGET STEP 1: RESOURCES
INDIAN BUDGETARY SYSTEM
TELECONFERENCES BY IGNOU
BASIC ECONOMICS THE UNION BUDGETS OF https://www.youtube.com/watch?v=h0
PREVIOUS YEARS jsvBqHGhs
http://www.clearias.com/
economics/ http://indiabudget.nic.in/ https://www.youtube.com/watch?v=fC
O6lEpz-nw

A JYP GUIDE TO BUDGET
STEP 1: START CONNECTING YOUR OWN
BUDGET STUDY, RESEARCH BY YOUR TEAM
MEMBERS AND EXPECTATIONS OF OTHER
MINISTRIES INTO THE FOLLOWING 12-
POINT BUDGET DOCUMENT

1. PRIMARY AND HIGHER 5. DIRECT AND INDIRECT TAXES: 8. FOREIGN DIRECT INVESTMENT
EDUCATION TAXES FOR BUSINESSES, INCOME
TAX REBATES FOR SALARIED
INDIVIDUALS, TAXES ON 9. BANKING REGULATIONS
2. PUBLIC HEALTH AND CONSUMER GOODS, GST,
SANITATION, CLEAN INDIA
10. DEFENSE
6. PROVISIONS FOR FLAGSHIP
3. AGRICULTURE AND RURAL GOVERNMENT PROGRAMS LIKE 11. INFRASTRUCTURE (RAILWAYS,
ECONOMY, FARMERS’ LOANS START-UP INDIA, DIGITAL INDIA, TRANSPORTATION, ROADWAYS,
MAKE IN INDIA, SEA-PORTS,AIR-PORTS)
4. INDUSTRY AND JOB 12. ONE ITEM YOU WOULD LIKE TO
CREATION ADD
7. BLACK MONEY
DRAFTING JYP BUDGET - PROCESS

• The 6 ministries will put forward their demands and budgetary expectations.

• Finance ministry will collect and consolidate the requirements of the cabinet
ministries and other JYP members.

• The finance minister along with the drafting committee will draft budget along
the 12 pointers.

• On day 1, each cabinet minister will make a pitch on their budget

expectations.

• Finance minister will table the budget and deliver the budget speech.
RESPONSIBILITY OF FINANCE MINISTER
• Define theme of budget ( a theme is a focus area in which new policies, or new support to
existing policies are announced along with funds)
• Give summary of revenue, expenditure, GDP and other macro-economic indicators.
• Consolidate and review expectations of each ministry and allocate budget along 12 themes.
• Define fiscal deficit target, management strategy for year 2019-20. (Refer to the resources
provided in this presentation)
• Table the budget and lead the budget discussion

OUTPUT EXPECTED OF FINANCE MINISTERS AND ITS COMMITTEE

• Report on macro-economic(GDP, Inflation, Revenue, Expenditure) state of economy in 2018-19.
(by first cabinet meeting)
• Budget speech (Three days before Budget session)
• Drafted copy of Budget for 2019-20 along 12 themes. (Three days before Budget session)
• Report on Fiscal management strategy for 2019-20. (Three days before Budget session)
HOW DO I START PREPARING IF I AM A FINANCE
MINISTER OR MEMBER OF THE COMMITTEE ON FINANCE?

• Understand the macro-economic indicators: national income, inflation, deflation, tax

collection, balance of payment, budget estimates, revised estimates and actuals
etc, FDI, credit ratings etc.
• Analyze the GDP of the economy for the past three years: identify which sector
has contributed how much to the economy.
• Commission situation analysis across 12 pointers of budget – current scenario, list
of central sector schemes, centrally sponsored schemes, their performance. (For this,
the Economic Survey Of India and vision document of NITI AAYOG will come
handy).
RESPONSIBILITIES OF DRAFTING COMMITTEE
• Review and consolidate the budgetary requirements received from ministries.
• Coordinate with finance minister on situation analysis across 12 pointers.
• Draft the budget along the 12 themes – define financial policy, budgetary
allocation in each theme.
• Support the finance minister in tabling the budget and leading discussions around
it.
OUTPUT EXPECTED OF DRAFTING COMMITTEE MEMBER
• Draft a framework to analyze the ministry wise actual receipts, budget estimate
and revised estimates for 2018-19. Refer to the resources for help. (For first
cabinet meeting)
• Consolidate the requirements of various ministries for budget. (One week before
the budget session)
HOW DO I START PREPARING FOR BUDGET IF I AM A
MEMBER OF BUDGET DRAFTING COMMITTEE?

• Read the previous year’s budget.

• Review and summarize the finance minister’s speech.
• Understand the basics of budget as mentioned previously.
• Conduct situation analysis across 12 pointers of budget – current scenario, list of
centrally sector schemes, centrally sponsored schemes, their performance. (For this,
the Economic Survey Of India and vision document of NITI AAYOG will come
handy).
RESPONSIBILITY OF CABINET MINISTERS
AND THEIR COMMITTEE

• Project the budgetary expectations for year 2019-20, as per the initiatives,
schemes and policies of ministry.
• Propose new/relevant initiatives within the scope of the mandate, with the
corresponding budgetary expectations.(Optional)

OUTPUT EXPECTED OF CABINET

MINISTERS AND THEIR COMMITTEE
• Scheme-wise data on budget estimate, revised estimate and actual spending
for the ministry for 2016-2019.(One day before cabinet meeting)
• Scheme wise Budgetary demands for the ministry for 2019-20.(One day
before cabinet meeting)
HOW DO I START PREPARING IF I AM A CABINET
MINISTER OR MEMBER OF THE COMMITTEE?
• Define the mandate of the ministry: what are the roles and responsibilities of
the ministry, what are the various departments working under the ministry.
• List down central sector schemes, centrally sponsored schemes, policies and
initiatives under each department in the past three years.
• Gather data around budget allocated to the scheme and policy over last three
years. Understand what is actual receipt, budget estimate and revised estimate.
RESPONSIBILITIES OF NON COMMITTEE
JYP MEMBER:

Budget preparation phase

• Critical examination of the budget – Look at the budget allocation to various
schemes of govt for three years, Understand and review the state of Indian
economy (GDP, borrowings, national income, inflation, deflation, tax collection,
balance of payment, budget estimates, revised estimates and actuals etc, FDI,
credit ratings etc. )
• Review and analyze Union Budget 2018- the shortcomings and strength.
• Provide suggestions, priorities for Budget.
Budget discussion phase
• Highlighting the shortcomings and strength of the JYP budget 2019-20.
HOW DO I START PREPARING IF I AM NOT A MEMBER OF ANY
COMMITTEE?

• Understand the basics of budget as mentioned previously.

• Mark the challenges faced by the Indian economy. Go through the NITI AAYOG
Vision Document and Economic Survey of India.
• Situation analysis of 12 pointers of the budget: list of central sector schemes,
centrally sponsored schemes, their performance.
HOPE THIS MUCH IS
ENOUGH. IF NOT,
DON’T WORRY

WE ARE SETTING UP FINANCE

MINISTERS’ WHATSAPP GROUP
WHERE YOU CAN SHARE IDEAS
WITH AND SEEK SUGGESTION
FROM FINANCE MINISTERS OF
OTHER JYPs.