Rule 43 — This rule explains the fundamental process of how

GFR 2017accounts

Rule 43 (1) Presentation of Budget to Parliament. In accordance with the provisions of Article112 (1) of the Constitution, the Finance Minister shall arrange to lay before both the Houses of Parliament, an Annual Financial Statement also known as the ‘Budget’ showing the estimated receipts and expenditure of the Central Government in respect of a financial year, before the commencement of that year. Rule43 (2) The receipts and expenditure of the Railways being a departmental commercial organization form part of the Government’s receipts and expenditure and are included in the Annual Financial Statement. With the merger of Railway Budget with the General Budget, the Demands for Grants and the Statement of Budget Estimates of Railways shall also be part of the General Budget with effect from 2017-18.
Rule 43 (3) The provisions for preparation, formulation and submission of budget to the Parliament are contained in Articles 112 to 116 of the Constitution of India. Rule43 (4) The Ministry of Finance, Budget Division, shall issue guidelines for preparation of budget estimates from time to time. All the Ministries/Departments shall comply in full with these guidelines. Rule44 The budget shall contain the following: -
(i) Estimates of all revenues expected to be raised during the financial year to which the budget relates;
(ii) Estimates of all expenditure for each programme, scheme and project in that financial year;
(iii) Estimates of all interest and debt servicing charges and any repayments on loans in that financial year;
(iv) Any other information as may be prescribed.

What This Means

This rule explains the fundamental process of how the Indian government's annual budget is prepared and presented. Essentially, the Finance Minister is responsible for presenting an 'Annual Financial Statement,' commonly known as the 'Budget,' to both houses of Parliament. This must happen before the start of the new financial year. This statement provides a detailed overview of all the money the Central Government expects to receive and spend during that year, as required by Article 112(1) of the Constitution.

A significant change highlighted in the rule is that the finances of the Indian Railways, which used to have a separate budget, are now fully integrated into the main General Budget. This merger took effect from the financial year 2017-18, meaning their income and spending estimates are now part of the overall government budget. The rule also clarifies that the entire process of budget preparation and submission is governed by specific articles (112 to 116) of the Indian Constitution.

Furthermore, the Ministry of Finance's Budget Division is tasked with issuing detailed guidelines for preparing these budget estimates. It's mandatory for all government Ministries and Departments to strictly follow these guidelines. The budget itself must contain clear estimates of all expected revenues, detailed expenditures for every program, scheme, and project, and projections for interest payments, debt servicing, and loan repayments for the upcoming financial year.