The Finance Ministry has sought adequate inputs from different central ministries forArun Jaitley’s Budget Speech, which would be the last budget of the current BJP-led NDA government before the 2019 general polls. Earlier this month, the ministry began the budgetary exercise for 2019-20. Meetings will be held with ministries of steel, power, and housing and urban development to finalise revised expenditure for the current fiscal and projections for the next financial year. The meetings are scheduled to continue till November 16. The General Budget is presented on February 1.

 

The finance ministry has requested the ministries to send material related with their departments that may merit inclusion in the finance minister’s budget speech for 2019-20 by November 15, according to a communication by the finance ministry to all secretaries. In view of the upcoming General Elections, the government is likely to come out with an interim budget also referred to as Vote-on-Account.

 

Finance Minister Jaitley is scheduled to present his 6th consecutive Budget with 2019 being Vote-on-Account.

 

As per practice, a Vote-on-Account or approval for essential government spending for a limited period is taken in an election year and a full-fledged budget presented by the new government.

 

Ministries are now allocated their budgeted funds from the start of the 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.