Govt kicks off Budget process, seeks estimates

NEW DELHI: The Centre has kicked off the annual Budget exercise and sought revised estimates on spending and non-tax revenue from departments and ministries, while highlighting how this year’s exercise will be different in view of the pandemic and its impact on government finances.
“In the special circumstances, the basis of the final budgetary allocations will be overall fiscal position, and subject to that the absorptive capacity of the ministry,” the Budget division in the finance ministry said in a letter sent on Thursday.
This indicates that the finance ministry will look at how the funds allocated for various schemes have been used before making additional resources available. The revised estimates are being closely watched as the Centre’s revenue receipts are way short of the target and spending has gone up, prompting it to restrict expenditure in non-priority sectors.
The pre-budget meetings are due to commence from October 16 and will continue till the November with ceilings on various schemes to be discussed before the revised estimates and the budget estimates related to expenditure are finalised.