Union Finance Minister Nirmala Sitharaman is getting ready to announce the interim budget in the Parliament as the country awaits the presentation on February 1, 2024. This interim budget is noteworthy since it coincides with the Lok Sabha election year, denoting a shift in the government’s fiscal strategy. Less than 22 days remain until the release of the budget, so conversations and anticipations about several areas—from infrastructure and education to agriculture and railroads—have gained traction.
What is the process?
The ‘lock-in’ mechanism, a particular technique aimed at protecting budget confidentiality, is one distinguishing feature of the budgetary process.
According to a PIB (Press Information Bureau) article, officials involved in the rigorous budget drafting go through a ‘lock-in’ period to protect the financial plan’s confidentiality.
During this time, these dedicated personnel are confined to the Budget Press in the North Block. This deliberate seclusion ensures that those working on the budget remain anonymous until the Union Finance Minister publicly presents the budget to Parliament.
The ‘lock-in’ procedure serves a single purpose: to keep financial facts private. During this time, officers and employees working on the budget refrain from interacting with people outside their professional area or at home. Their commitment to keeping within the Budget Press limits of the North Block will continue until the formal announcement of the federal Budget.
Why is it needed?
This dedication to confidentiality stems from past experiences that highlight the need to protect financial data. An exemplary case dates back to 1950 where an infringement of budgetary secret resulted in serious consequences. The financial plan was produced within Rashtrapati Bhavan at the time.
However, in 1950, a piece of budgetary information was leaked prematurely, sparking a commotion because the budget specifics became public before the official unveiling in Parliament. Immediately upon the budget’s release, John Mathai, the Finance Minister at the time, was accused of favouring wealthy Western nations and influential businesspeople. The controversy grew to the point that Finance Minister John Mathai was forced to quit owing to a breach of confidentially.
Digital transformation during the ages
From 1980 to 2020, the basement of North Block had a printing press which was traditionally used to print budget documents. Following that, the budget turned digital, with just the most essential documents printed and bulk distribution taking place via mobile app or website.
Digital transformation also means that the lock-in time dropped to five days, down from up to two weeks previously. These officers and personnel only have contact with their loved ones once the Union Finance Minister presents the Budget to Parliament.
The Union Budget went paperless beginning in 2021-22. There is also a Union Budget Mobile App available for easy access to the paper.
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