New Delhi, Aug 2026 : The government has formally begun preparations for the Union Budget 2027-28, with the Finance Ministry issuing the annual Budget Circular outlining the procedures, timelines and guidelines to be followed by ministries and departments during the budget-making process.
The circular provides the framework for preparing the Revised Estimates for 2026-27 as well as the Budget Estimates for 2027-28. Ministries and departments have been directed to submit detailed expenditure projections in advance of the pre-Budget consultations.
According to the schedule, the pre-Budget meetings will commence from October 12, 2026, while ministries and departments have been asked to provide the necessary information by October 6. The exercise will help the government assess spending requirements and align proposed allocations with available financial resources.
The upcoming Budget is expected to remain closely linked to the government’s broader objective of building a developed India by 2047 under the Viksit Bharat @2047 vision. Expenditure proposals will therefore have to reflect approved government priorities while being based on realistic assessments of financial requirements.
The Department of Economic Affairs under the Finance Ministry has emphasised the importance of accurate and realistic projections during the budget preparation process. Ministries and departments have also been advised to keep additional resource requirements during the financial year to a minimum.
The Budget Circular further states that proposed allocations should have the approval of the competent authority. For ongoing schemes, ministries and departments will also be required to ensure that approved expenditure plans are already in place before seeking allocations.
As part of the annual exercise, ministries and departments will prepare their Detailed Demands for Grants through the Union Budget Information System (UBIS). The system will be used to compile and process the financial requirements that will eventually form part of the Union Budget documents.
The government has also reiterated strict confidentiality requirements for all Budget-related information. Financial Advisers have been instructed to ensure that information and data entered into UBIS are handled only through designated and secure systems.
The issuance of the Budget Circular marks the beginning of the government’s first major fiscal planning exercise for 2027-28. The process will involve assessing expenditure demands across ministries while balancing them against available fiscal resources.
The Budget exercise is expected to focus on ensuring that government spending remains aligned with established priorities and long-term development goals. As consultations progress, expenditure allocations will be calibrated to support economic growth, public welfare and the government’s wider Viksit Bharat @2047 objective.
