As India approaches the Union Budget for the fiscal year 2025-26, the Ministry of Finance is leaving no stone unturned in ensuring that the process is more inclusive, transparent, and participatory. The Ministry has extended an open invitation for suggestions from a wide range of stakeholders, including citizens, economists, industries, and government departments, to make the budget more reflective of the nation’s economic challenges and opportunities.
The budget formulation process in India is a complex and multi-faceted task, with various ministries and experts collaborating to shape the final document. This year, the Ministry has again opened its doors to public participation, seeking input from citizens through digital platforms like the MyGov platform, surveys, and social media. The aim is to incorporate the views of ordinary citizens, ensuring that the budget addresses issues that matter most to the common people as well as industries and other critical sectors.
Key Stakeholders Consulted
Every year, various government ministries and departments submit their funding requirements to the Ministry of Finance. This year is no different, as sectors like education, healthcare, and infrastructure outline their priorities for the upcoming fiscal year. In addition, economists, financial experts, and economic think tanks are consulted to evaluate the country’s macroeconomic outlook, providing insights into critical areas such as inflation, GDP growth, and fiscal health.
Trade associations and industry bodies, which represent sectors such as agriculture, manufacturing, and services, also play a pivotal role in the process. Their input helps the Ministry shape policies and reforms that can boost economic growth and tackle challenges faced by industries. Moreover, state governments are consulted to ensure that regional priorities, particularly in areas like healthcare, education, and infrastructure, are well-incorporated into the national budget.
Emphasizing Transparency And Inclusivity
The Ministry’s approach this year aims to enhance transparency and accountability. Public consultations, in particular, have become a key feature in the budgeting process, helping to foster trust between citizens and the government. In recent years, the Ministry has adopted digital and social media platforms, even leveraging radio to engage with a wider audience, especially those in rural areas. This inclusivity in the process ensures that the needs of both urban and rural populations are addressed.
The increased participation from citizens and experts aligns with the government’s broader vision of creating a participatory policy-making environment. By integrating inputs from a variety of stakeholders, the Ministry hopes to develop a budget that is not only financially sound but also socially inclusive and economically sustainable.
Pre-Budget Consultations
The Ministry of Finance held month-long pre-budget consultation meetings in December 2024, bringing together over 100 invitees from different sectors, including agriculture, trade unions, education, health, MSMEs, industries, and infrastructure. The consultations were led by Union Finance Minister Nirmala Sitharaman, who was joined by key officials, including Union Minister of State for Finance, Pankaj Chaudhary, and Chief Economic Adviser, Dr. V. Anantha Nageswaran.
The discussions covered crucial issues, such as infrastructure development, agriculture reforms, the challenges in the healthcare sector, and MSME growth. Sitharaman expressed her gratitude to the participants for their valuable suggestions, reassuring them that their inputs would be carefully considered as the Ministry drafts the Union Budget.
Citizen Participation
This year, the Ministry has also introduced an initiative to actively involve citizens in the budgeting process through the MyGov platform. Starting January 10, 2025, citizens were invited to submit their ideas and suggestions for the upcoming budget. This move aligns with the government’s commitment to ‘Jan Bhagidari’ (public participation), with the aim of fostering a more democratic and transparent budget-making process.
A Democratic Approach to Budgeting
The broad-based consultation process undertaken by the Ministry of Finance is a major move towards making the Union Budget process more democratic and participatory. By encouraging inputs from diverse groups, including ordinary citizens, experts, and industry leaders, the government seeks to create a budget that is not only economically viable but also aligned with the aspirations of the people. The final Union Budget 2025-26 is expected to reflect the government’s commitment to building a resilient, inclusive, and forward-looking economy.
ALSO READ: Union Budget 2025: Digital Transformation To Propel India’s Manufacturing Sector