India Starts FY28 Union Budget Prep: Finance Ministry Circular Issued

The Indian government has officially commenced preparations for the Union Budget 2027-28 (FY28), as the Finance Ministry issued its Budget Circular. This circular establishes the comprehensive framework and timelines for the annual fiscal exercise.

This critical process includes the meticulous preparation of Revised Estimates for the financial year 2026-27 and the Budget Estimates for 2027-28. Ministries and departments are now mandated to provide their detailed expenditure projections by a specific deadline.

Key Budget Deadlines and Focus

• Expenditure projections from ministries and departments are due by October 6, 2026.
• Pre-Budget consultations are scheduled to begin on October 12, 2026.

A core focus of this budget exercise is its alignment with the government’s overarching ‘Viksit Bharat @2047’ vision. This ensures all expenditure proposals reflect approved priorities and realistic resource requirements.

The Department of Economic Affairs, operating under the Finance Ministry, has underscored the critical need for realistic and accurate budgetary projections. Ministries are urged to minimize any additional resource requirements throughout the financial year, promoting fiscal discipline.

Submission Requirements and Confidentiality

The circular further emphasizes that all proposed allocations must be backed by the approval of the competent authority. Additionally, continuing schemes must have approved expenditure plans in place before submission.

• Ministries and departments must prepare their Detailed Demands for Grants using the Union Budget Information System (UBIS).
• The government has reiterated the importance of maintaining strict confidentiality regarding all budget-related information.
• Financial Advisers are specifically instructed to ensure that data entered into UBIS is handled through prescribed secure systems.

This initial Budget Circular effectively sets the stage for the government’s primary fiscal planning for FY28. Expenditure priorities are carefully balanced against fiscal constraints and the long-term objective of achieving a developed India by 2047.