Every Union Budget begins not in February but in July — when the Finance Ministry sends a Budget Circular to all Union Ministries asking them to submit expenditure estimates for the following financial year. Ministries are given broad ceilings. This kicks off a six-month internal negotiation that culminates in the Finance Minister presenting the budget on February 1.
Timeline
The Budget Calendar
Revenue vs Capital — The Most Important Distinction
Revenue Account vs Capital Account
The BE (Budget Estimate) is what the government proposes. The RE (Revised Estimate) — published mid-year — shows how actual spending is tracking. The final 'Actuals' are published by the Controller General of Accounts roughly 14 months later. Always check the RE and Actuals before accepting any Budget claim at face value.
July
Budget process begins
Feb 1
Budget presented
3% GDP
Fiscal deficit target (FRBM)
₹50.6L Cr
Total Budget 2026–27 size
The government's total borrowing for the year — including to fund both deficits — is called what?
Arjun Menon
Economy Reporter