Home Finance Annual Budget Exercise Begins

Annual Budget Exercise Begins

Bhubaneswar: The State Government has initiated the hectic exercise for preparation of Annual Budget for the Financial Year 2023-24. Principal Secretary Finance Vishal Dev has issued a detailed circular to all the Departments to prepare the budget estimation as per real need.  

This time, the Department of Finance  will communicate the Departments with a multi-year ceiling for next three years, i.e. Budget Year (Y), Y+1 and Y+2, so that Departments would have predictability in fund flow and can make multi-year project planning.

The Departments will be given 2-3 months’ time to have thorough scrutiny and prioritization of the Budget proposals within the ceiling communicated, Mr.Dev.

Ceiling will be communicated through the BETA system on a broad category of expenditure with flexibility to the Departments to prioritize the expenditure within the broad ceiling.

He made it clear that proposals beyond the ceiling will not be allowed to be processed in the BETA system.

As per the circular, Departmental ceiling will be communicated to each Administrative Department disaggregated by Administrative Expenditure (Salaries, Maintenance and others), Programme Expenditure (State Sector Schemes, Centrally Sponsored Schemes, and Central Sector Schemes), Transfers from State (Central Finance Commission, State Finance Commission and others) and Disaster Response Funds (SDRF and NDRF).

The Departments have been asked to adopt previously established norms and practices for preparation of estimates within the ceilings communicated.

While preparing the Programme Expenditure, Mr.Dev asked the Department Heads to identify sectoral priorities in line with State priorities and SDGs where ever relevant.

“Allocation under State Sector Schemes should not be made for schemes not appraised by EFC/SFC as the case may be. Allocation for Centrally Sponsored Schemes and Central Sector Schemes should be proposed taking into account the likely level of Central Assistance to be received for the schemes for the budget year within the overall ceiling communicated for the sectors,” he said.

The State Government is now maintaining separate Budget lines for Central and State Share under each Centrally Sponsored Scheme (CSS) as per the revised guidelines of Government of India for release of funds under CSS, he said.

Mr.Dev advised the Departments to earmarking of allocation for different Schemes under the Programme Expenditure for Tribal Sub-Component and Scheduled Caste Sub-Component as per the norm.

They have to make a break-up of allocation under Programme Expenditure for District Sector and State Sector Schemes.

Like the current year, the Finance Department in consultation with the Planning & Convergence Department will bring out a “Fiscal Strategy Paper” indicating the assumptions for revenue and expenditure projections in the medium term and the outlook for the State economy and finances.

Other documents like Statement under FRBM Act, SDG Budget, Gender Budget, Child Budget, Nutrition Budget and Climate Budget documents etc. would be prepared mostly by using the information from the budget database, informed the Principal Secretary.

He asked the Departments to submit the expenditure estimates by December 15, 2022. The Pre-Budget consulting meeting will be conducted between December 16 and 31 while a meeting with secretaries of major spending Departments will be held on February 6, 2023 under the chairmanship of Chief Secretary or Development Commissioner.

The Annual Budget is scheduled to be put before the Council of Ministers in between February 7 to 10, 2023 for its approval. The budget documents will be drafted in the second week of February while the Appropriation Bill will be tabled in the Assembly by March 2023.