Budget 2020: All you need to know about the Union Budget

Updated: Jan 29, 2020, 09:36 IST | mid-day online correspondent | Mumbai

The first budget of an Independent India was presented by RK Shanmukham Chetty, who served as India's first Finance Minister under Prime Minister Jawaharlal Nehru's government

Finance minister Nirmala Sitharaman
Finance minister Nirmala Sitharaman

This year, the Budget Session of the Parliament will commence from January 31 and will conclude on April 3, 2020, with the second phase of the budget session being held from March 2 to April 3. During the budget session, Finance Minister Nirmala Sitharaman will present the second Union Budget on February 1.

The Union Budget is an annual exercise by the Central government and has two major parts: The Revenue Budget and the Capital Budget. While the Revenue Budget comprises of revenue receipts and expenditures such as tax revenue, non-tax revenue among others. On the other hand, the Capital Budget comprises of capital receipts such as borrowings, disinvestment, creation of assets and investments to name a few.

Here's all that you need to know about the Union Budget:

So, what exactly is a Union Budget?

Every year, the finance minister of the country presents a budget for the next financial year. The exercise carried out by the central government every year is called the Union Budget. During the Union Budget, the Finance Minister of the country makes an estimate of the revenue and expenses for the forthcoming financial year.

Who presents the Union Budget and When?

The Union Budget is presented by none other than the finance minister of the country. This year, FM Nirmala Sitharaman will be presenting her second Union Budget. Since 2017, the Union Budget has been presented on the first day of February month. Earlier, the Union Budget was presented on the last date of February month.

When was India's first Union Budget presented?

The very first exercise of the Union Budget took place on November 26, 1947. It was the first budget of an Independent India and was presented by RK Shanmukham Chetty, who served as India's first Finance Minister. Interestingly, Chetty was chosen to be India's first FM due to his expertise in economics by none other than Mahatma Gandhi.

It is said that Chetty was chosen to be the Finance Minister of Independent India's first cabinet against the wish of Prime Minister Jawaharlal Nehru. However, his tenure was short-lived as he quit after due to conflict of views with Nehru.

When does the Union Budget proposal take effect?

The Union Budget is proposed in the parliament by the finance minister. Once the parliament passes the budget proposal, it comes into effect from April 1. Thus April 1 marks the beginning of the financial year. The Union Budget is valid till March 31 of the following year until a new budget is proposed for the forthcoming year.

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