Budget 2023: Why is the budget called Union Budget, what is its importance?

The word ‘budget’ is derived from the French word Bougette, which means a leather briefcase. In the past, the finance minister used a leather bag to present the budget.

Nirmala Sitharaman Budget 2023

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Budget 2023 Nirmala Sitharaman will present it before the country on February 1. Common people have high expectations from this budget. Now there are some questions which always come in the mind of common people. As Budget what would happen? What happens in the budget? Why is the budget presented? The most important question today is why the budget is called the Union Budget? Today we will tell you why the budget is called the Union Budget and what is its importance?

Why is the budget called the Union Budget?

The term Union Budget came into existence because India is a union of states. The Constitution of India has established the federal form of government in India. That’s why it is called the Union of States. In India, a union consisting of 28 states and 7 union territories has been established. The Union Budget of India, also known as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India. Now that the country is on a federal structure, its budget is also called the Union Budget.

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how the word budget originated

By the way, the word ‘budget’ is derived from the French word Bougette, which means a leather briefcase. In the past, the finance minister used a leather bag to present the budget. In 2019, when Sitharaman presented her first budget, she replaced the budget briefcase with ‘Bahi Khata’.

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Importance of Union Budget

  1. The Union Budget is much more than just an accounting document. It also reveals the broad policy positions of the government and acts as a platform for financial reforms.
  2. The general objective of the Union Budget is to bring about rapid and balanced economic growth with social justice and equality in our country.
  3. It aims to ensure efficient allocation of resources, reduce unemployment and poverty levels, reduce inequalities of wealth and income, control prices and change the tax structure.
  4. According to Article 112-117, any proposal for expenditure and demand for grant can be made only on the recommendation of the President.
  5. According to Article 112 of the Indian Constitution, it is the responsibility of the President to present the budget in the Lok Sabha.
  6. As per Article 77(3), the Union Finance Minister is made responsible for the preparation of the budget which is also called the Annual Financial Statement and is conducted through the Parliament.
  7. Ministries, bodies, union territories and states put together plans and submit them to the finance minister, who after thorough deliberations presents it to Parliament.