Union Budget: How it is prepared and presented
13 Dec 2025

Finance Minister Nirmala Sitharaman will present her ninth consecutive Union Budget on February 1, 2026.

Since assuming office in 2019, she has become one of the few finance ministers to present five or more consecutive budgets.

The others in this exclusive club include Morarji Desai, Manmohan Singh, P. Chidambaram, Yashwant Sinha, and Arun Jaitley.

Changes in budget presentation date
Schedule shift

The Union Budget was traditionally presented on the last day of February until 2016. However, since 2017, the presentation date has been advanced to February 1.

Another major change came with the 2021 Union Budget when Sitharaman introduced a paperless format.

She ditched the traditional bahi khata (account ledger) for a tablet inside a red cover with the national emblem embossed on it.

The meticulous process of Union Budget preparation
Preparation steps

The preparation of the Union Budget is a detailed process that begins months in advance, usually in September.

It involves extensive coordination, discussions, and analysis across various government departments and ministries.

The Budget Division of the Department of Economic Affairs starts this process by issuing circulars to ministries, states/UTs, defense forces among others.

These entities are then required to submit estimates for their projected expenditures and revenues for the upcoming fiscal year along with revised estimates for the current one.

Reviewing and analyzing proposals
Proposal assessment

Once the estimates are received, senior officials such as the revenue secretary conduct a comprehensive review.

Ministries and departments provide detailed insights into their financial activities, which are scrutinized to estimate the budget deficit and decide borrowing requirements.

The Chief Economic Advisor is then consulted for guidance on managing fiscal challenges.

This step ensures that all proposed expenditures align with projected revenues while maintaining fiscal discipline.

Allocating revenue and pre-budget consultations
Revenue distribution

The finance ministry decides how to distribute funds among different departments and ministries.

In case of disagreements over allocations, the ministry seeks guidance from the Union Cabinet or Prime Minister.

This is one of the most crucial steps in preparing the Budget.

The finance minister also holds consultations with various stakeholders such as economists, state representatives, bankers, farmers, and trade unions to identify key priorities for the upcoming budget.

The 'halwa' ceremony and final stage
Budget unveiling

The popular halwa ceremony marks final stage of budget preparation.

During this event, a traditional Indian sweet dish (halwa) is distributed among finance ministry staff, marking the start of printing the budget document.

For confidentiality purposes, officials involved in this process remain in seclusion at the Budget Press in North Block until presentation day.

Finally, Sitharaman will present Union Budget 2026 in Parliament before it is debated and approved by both Houses and sent to the President for formal assent.