The preparations for the Union Budget 2027-28 have already started for the government, and the Finance Ministry has outlined a detailed timetable for ministries and departments to submit financial estimates and supporting information.
The budget exercise will include both the Revised Estimates (RE) for 2026-27 and the Budget Estimates (BE) for 2027-28. A Budget Circular issued by the Finance Ministry has set a number of deadlines, and several key dates are expected to occur in October.
The exercise is expected to help the government assess the spending requirements of different ministries, review existing schemes and establish expenditure ceilings before the final Budget documents are prepared.
October 6 deadline for UBIS data entry
One of the first major deadlines is on October 6.
Financial Advisers have been instructed to ensure that the information in Appendices I to VII is entered into the Union Budget Information System (UBIS) by the deadline.
The data submitted through the system will provide the basis for discussions during the pre-budget meetings. The Finance Ministry has made it clear that these meetings will not be rescheduled because of delays in entering the required information.
The directive puts pressure on ministries and departments to do financial assessments in time.
Pre-Budget Meetings Begin October 12
The next major phase of the Budget process will begin on October 12, when pre-budget meetings are scheduled to begin.
The discussions will continue until mid-November and will be used to examine the spending requirements of ministries and departments.
These meetings will contribute to the provisional finalisation of the Budget Estimates for 2027-28 and Revised Estimates for 2026-27.
The discussions will be on realistic expenditure requirements, continuing commitments and the availability of fiscal resources.
Tax Estimates Due by October 15
Another important deadline is October 15, by which ministries and departments are to submit their estimates of tax receipts.
As an aspect of budget-making, accurate revenue projections are critical to the budgeting process because they let the government know the available resources for expenditure and fiscal planning.
The October timeline is therefore a key early stage of the FY28 Budget exercise.
FRBM Disclosures Due in November
The budget will continue past October.
Disclosures under the Fiscal Responsibility and Budget Management (FRBM) framework must be submitted by November 6, according to the circular.
The FRBM framework provides the broader fiscal framework within which the government prepares its expenditure and revenue plans.
After the discussions, the Union Budget Information System is expected to reflect the final expenditure ceilings by the end of December 2026.
Ministries and departments will then proceed with the preparation of their Detailed Demands for Grants, which are an important part of the Union Budget documents.
Government Emphasises Realistic Spending
The Finance Ministry has also directed ministries to be cautious in making their estimates.
Departments are asked to first provide for committed and ongoing expenditure before pursuing new schemes or other expenditure items in order to have them allocated to new schemes and new expenditure items.
The estimates are expected to take into account spending up to September 30, 2026, and actual expenditure recorded in previous years.
Ministries are also required to factor in pending arrears, reappropriations and unspent balances under various schemes in their planning when preparing for their requirements.
This is because we want the budget allocations to be realistic and not just re-allocations of previous years.
Review of Existing Schemes
The circular also focuses on schemes that will continue into the 16th Finance Commission cycle.
Such schemes must be properly appraised and approved by the competent authority. Final Expenditure Finance Committee (EFC) memoranda are to be submitted before the pre-budget meetings.
The government has also instructed ministries to rationalise expenditure and ensure that discontinued schemes do not receive fresh Budget allocations.
Budget provisions should also be supported by the appropriate scrutiny and approvals.
What the FY28 Budget Process Means
The detailed timeline indicates that the government is keen on early and disciplined Budget preparation.
With ministries required to submit information within fixed deadlines, the Finance Ministry will have several months to assess competing expenditure demands and then decide on the Budget framework to finalise it.
So the FY28 exercise will entail balancing continuing commitments and new priorities and spending in line with the government’s broader fiscal objectives.
For ministries, the immediate task will be to meet the October deadlines, prepare credible expenditure estimates and to ensure that all the allocations are supported by the right approvals and supporting documentation.
When pre-budget meetings begin in October, the discussions will provide an early indication of the government's spending priorities for 2027-28 and how ministries' demands are likely to be accommodated within the available fiscal space.
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