The Framework and Process of Indian Union Budget with Reference to 2015-2016

The budget documents are fascinating. When we dissect them, we understand the purpose of the government, its policies, priorities, allocation of resources and funds among different regions, sectors and industries. These are expected to bring conclusive change and progress in the growth of the economy and its people. The budget process was first introduced on 7th April, 1860, two years after the transfer of Indian administration from East-India Company to British Crown. The first Finance Member, who presented the Budget, was Mr. James Wilson. After independence, India's first Finance Minister Shri R. K. Shanmukham Chetty, presented the first Budget on 26th November, 1947. Since then, this has evolved over the past six decades to reflect the firmness of our democratic processes in framing our economy. It has come to light as a crucial tool for public finance management. In this paper, we have tried to explain the layout and activities connected with the preparation of the Annual Budget with a brief note on latest union budget of 2015-2016.