Budget 2023-24: J&K govt to begin discussions today

The Jammu and Kashmir government is all set to kick start discussions today finalize budget proposals for the fiscal year 2023-24. However, the post of Jammu and Kashmir Financial Commissioner is lying vacant after Vivek Bhardwaj shifted to centre.

“The discussion on Budget proposals of Revised Estimates 2022-23 & Budget Estimates 2023-24 both under Revenue and Capital Component including CSS/ PMDP / Loan Component in Finance Department shall start from 10th of October, 2022,” reads the order issued by Director General of Finance Department.

On the first day of discussions, Cooperative Department, Information Department, Science & Technology Department, Labour & Employment/ Stationery & Office Supplies Department, Transport Department and Tribal Affairs Department will participate in meeting.

The month-long deliberations would end on October 21, with consultations with Power Development Department, School Education Department, Higher Education Department, Disaster Management, Relief, Rehabilitation & Reconstruction Department and Home Department.

The government also asked the departments to furnish Action Taken Reports (ATRs) on the Budget Announcements, if any, besides complete details on Establishment Budget & FRBM to the Finance Department much ahead of the scheduled date of discussion.

“The departments shall call only those officers to participate in their respective budget meeting in the Finance Department as are felt absolutely necessary,” the order reads.

Similarly, Union finance Ministry will also kick off its annual Budget making exercise for financial year 2023-24, that is expected to look at measures to revive growth amid a gloomy global outlook.

The meeting would start with consultations with various ministries and departments on the revised estimates (RE) of expenditure for ongoing financial year and the fund requirement for 2023-24.

On the first day on Monday, RE meetings with Ministry of Environment, Forest and Climate Change, Ministry of Labour And Employment, Ministry of Information and Broadcasting, Ministry of Statistics and Programme Implementation and Ministry of Youth Affairs and Sports would take place.

Most of these discussions to finalize RE for ongoing financial year (2022-23) and Budget Estimate for 2023-24 would be chaired by the Finance Secretary and Expenditure Secretary.

The month-long deliberations would end on November 10, with consultations with Ministry of Cooperation, Department of Agriculture and Farmers Welfare, Department of Agricultural Research and Education, Ministry of Road Transport and Highways, Ministry of Railways and Ministry of Petroleum and Natural Gas, as per a notification of Budget Division of the finance ministry.

The Budget Estimates for 2023-24, will be provisionally finalized after completion of pre-Budget meetings.
These meetings would take place against the backdrop of many institutions, including the Reserve Bank and the World Bank slashing India’s growth forecast to 7 per cent and 6.5 per cent, respectively.

It will be the fifth Budget of the Narendra Modi 2.0 government and Finance Minister Nirmala Sitharaman and the last full Budget before the general elections due in April-May 2024.
During the election year, the government presents Vote on Account for the limited period. Usually, the Budget is cleared till July.

The Budget 2023-24 is likely to be presented on February 1, during the first half of Parliament’s Budget session which usually begins in the last week of January every year.
The Budget 2022-23 had projected a growth rate of 7-7.5 per cent in real terms while fiscal deficit was pegged at 6.4 per cent of gross domestic product (GDP).

Prime Minister Narendra Modi-led government scrapped the colonial-era tradition of presenting the Budget at the end of February. The then finance minister Arun Jaitley had for the first time presented the annual accounts on February 1, 2017.

With the change in the date of Budget presentation, ministries are now allocated their budgeted funds from the start of a financial year beginning April. This gives government departments more leeway to spend as well as allow companies time to adapt to business and taxation plans.

Previously, when Budget was presented at the end of February, the three-stage Parliament approval process would get completed some time in mid-May, weeks ahead of the onset of monsoon rains.

This meant government departments would start spending on projects only from August-end or September, after the monsoon season ended.