Setting the process in motion

13/11/2018

The Government has set the process in motion for preparation of budget for next financial year of 2019-20 and asked the Finance Department to carry out comprehensive exercise for it by holding Department-wise meetings. This will be for the first time when capital and revenue expenditure will be discussed in one meeting to be taken by the Finance Department as some of the functions of Planning, Development and Monitoring Department had recently been transferred to the Finance by the State Government. Previously, the revenue and capital expenditure meetings were held separately by Finance and Planning Departments. The Government wants to be ready with the budget preparations and a final call on whether and when to take Vote-on-Account will be taken by Governor Satya Pal Malik, who happens to be the head of the State in the absence of elected Government in the State and that preparations will be made for both Revised Estimates for ongoing financial year of 2018-19 and Budgetary Estimates for the next fiscal year of 2019-20.
The Government has to assess requirements of all its Departments for incorporation in the budget. However, meetings with other stakeholders linen business and trade bodies are held in case of full budget presentation, which is generally done by the elected Government. But if the spell of Governor’s rule prolongs, the Governor has the powers to present full budget too. This time, the Planning Development and Monitoring Department will not be taking any budget-related meeting as its functions have been shifted to the Finance Department. Therefore, both capital and revenue expenditure meetings will be taken by the Finance Department. As next Lok Sabha elections are due in April-May, the Election Commission was likely to make an announcement of the elections in February, leading to imposition of Model Code of Conduct after which full budget can’t be presented by the State Government. Powers of the Legislature were now vested with the Governor and he could take `Vote-on-Account’ after getting data from the Finance Department and other concerned Government offices. Taking ‘Vote-on-Account’ for three months or six months remains sole prerogative of the Governor. A comprehensive preparation has to be done even for the ‘Vote-on-Account’ as the Governor had to take vote for expenditure of particular amount for three months or six months. Similarly, the Government also has to take vote on Revised Estimates for the current financial year.

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