Rule 43 — GFR 2017
Original Rule Text
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
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.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Finance Minister must present the Annual Financial Statement, or Budget, to Parliament before the new financial year begins.
- 2The Budget details the Central Government's estimated income and expenditure for the upcoming financial year.
- 3Since 2017-18, the finances of the Indian Railways are fully merged and included within the General Budget.
- 4The constitutional framework for budget preparation and submission is outlined in Articles 112 to 116 of the Constitution of India.
- 5All government Ministries and Departments are required to comply with budget preparation guidelines issued by the Ministry of Finance, Budget Division.
- 6The budget must include estimates of all revenues, expenditures for specific programs and projects, and costs related to debt and loan repayments.
Practical Example
Imagine it's September 2024, and the Ministry of Rural Development is preparing its budget estimates for the financial year 2025-26. As per Rule 43(4) and 44, the Ministry's Budget Section receives detailed guidelines from the Ministry of Finance's Budget Division, outlining formats, deadlines, and specific priorities for the upcoming year. The team, led by Joint Secretary (Finance) Ms. Priya Sharma, meticulously compiles data.
They estimate expected expenditure for flagship schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and Pradhan Mantri Gram Sadak Yojana (PMGSY), breaking down costs for salaries, material, administrative overheads, and new project initiatives. They also project any minor revenues, though most of their budget is expenditure-focused. Ms. Sharma ensures that all estimates for each program, project, and scheme are clearly laid out, along with any anticipated debt servicing or loan repayments relevant to the Ministry, strictly adhering to the MoF guidelines before submitting their comprehensive budget proposal.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.