The Four Primary Stages Of Budget Simplified

Part A: Estimates of Expenditure

This process begins with the concerned ministries providing their initial estimates of planned and non-planned expenditures. They discuss the planned expenditures with the Planning Commission. The financial advisors of the ministries prepare the non-planned expenditures. The expenditure secretary then consolidates these expenditures and after intensive discussion with the financial advisors, budget estimates are set for the following fiscal year.

Part B: Estimates of revenue

As a concurrent exercise, an assessment of expected revenues that are likely to flow into the government treasury is done. These include receipts from the repayment of loans given by the government, receipts from the divestment of public-sector equity, tax revenues, receipts from the dividends from public-sector units, interest payments on loans given out by the government, etc.

All these estimates are provided to the revenue secretary.