Delhi government begins Budget prep, asks depts for realistic estimates

New Delhi: The Delhi government has commenced the Budget preparation process for the fiscal year 2025-26, urging its various departments to submit their financial estimates by the first week of October.

According to officials from the finance department, a deadline of October 7 has been set for departments to present both their revised estimates for 2024-25 and their Budget proposals for 2025-26. These proposals should encompass funding for schemes, projects, and programs. To facilitate this process, the finance department has circulated a comprehensive ‘Budget Circular,’ which outlines specific guidelines that departments must follow. This includes adherence to the prescribed format as stipulated under the General Financial Rules of 2017. The budgetary expenditures will be categorised into several segments, including establishment expenses, government initiatives, various projects, and centrally sponsored schemes.

One of the critical issues highlighted by the finance department is the trend of departments underestimating their fund requirements. Recent audits revealed that many departments failed to make realistic assessments of their financial needs under newly established object heads, leading to avoidable reallocations of funds. This practice has raised concerns about the efficacy of budget management and the accurate allocation of resources.

The circular emphasises the importance of realistic budgeting, noting that some departments have requested additional funds but failed to utilise even their original budget allocations. It calls for a thorough examination of projected expenditures to ensure that funds are allocated based on genuine requirements.

Additionally, the finance department has pointed out the discrepancies between original budget estimates and actual expenditures. Such inconsistencies suggest a lack of accurate forecasting and a failure to project financial needs adequately. The circular warns that unrealistic fund assessments not only hinder effective

budgeting but also attract

negative feedback from auditing bodies.

To address these issues, departments are advised to prepare comprehensive proposals for any new schemes, which will be submitted to the relevant ministry at the Government of India level. For new initiatives to be included in the budget, prior approval from the Legislative Assembly is essential. Therefore, the finance department urges all concerned to make appropriate budget provisions to ensure smooth implementation of new programs.

As the budget preparation process unfolds, the Delhi government aims for a more structured and realistic approach to financial planning, ensuring that funds are effectively allocated and utilized to meet the needs of the city’s citizens.