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  • Category: Miscellaneous

    Is the budget allocations an estimated calculation or really to implement?

    For every year we have a budget session for states and as well as at the center there are certain allocations in the budget on different sectors is it an estimated plan for spending the funds on different sectors or Is the budget allocations which are announced are really to implement?What will happen if the budget allocations in particular sectors are not implemented in that proposed year?Because of a poor state like bifurcated Andhra Pradesh(who are demanding of special category status) announces 1 Lakh crore budget.So is it some fancy number which is announced in the budget?Knowledgeable members, please respond to the question.
  • #628079
    The estimations for various expenses a for various projects will be made and will be getting approved by the parliament. Then the implementation period will also be approved at that time by parliament. Basing on this more detailed estimation years will be made by the particular project implementation team and will be submitted to Finance Ministry for allocations of funds for that particular year. The total requirements for that year by all the concerned departments will be forwarded to the Finance Ministry. In turn, this ministry will ask all the departments to give their estimated receipts also for that particular year. Basing on these estimations they will allocate funds for that year. Once it is approved in the budget the expenditure can be maximum up to the allocation. Sometimes some allocations may not be completely utilised that year. In the next year budgets, those departments will be given less amount basing on the actual expenditure during the previous year.
    always confident

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