FM kicks off budgetary exercise with HALWA ceremony

It is a tradition to have something sweet before any auspicious event in India. The Union budget is no exception.

Printing of the budget documents started on Monday, with the finance minister Nirmala Sitharaman attending the customary ‘halwa’ ceremony. As part of the over-70-year-old ritual, the sweet dish is prepared in a huge kadhai every year and served to the entire staff at the finance ministry, North Block, around 10 days before budget.

Close to 100 officials directly involved in budget-making and printing of the budget documents are put in a ‘lock-in’ in the North Block post the halwa ceremony.

During this time—for 10 days—these officials are cut off from their family and are not allowed to reach them via phone calls or emails, as the documents are guarded closely. Phone calls are allowed only in emergencies. All forms of communication for these officials resume only after the finance minister presents the budget in Parliament. This is done to ensure complete secrecy and prevent any leaks. Only senior government officials such as joint secretaries and secretaries are allowed to go home.

The budget document is printed in a printing press located in the basement of the North Block.

Besides Sitharaman, the ceremony was attended by minister of state for finance Anurag Thakur, finance secretary Rajeev Kumar, economic affairs secretary Atanu Chakraborty, revenue secretary Ajay Bhushan Pandey, department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey, expenditure secretary T.V. Somanathan and other senior finance ministry officials.

This year, Sitharaman will present the Union budget on 1 February. She is expected to announce fresh steps to pull the economy out of a deep downturn.

Sitharaman will present her second budget at a time when economic growth has fallen to a six-and-a-half-year low amid tepid demand and sluggish private investment, coupled with dismal revenue growth and retail inflation that has touched a five-and-a-half-year high. Besides, ongoing tensions in West Asia could drive up oil prices.

According to the latest estimates, the economy will grow at 5% in the current fiscal ending in March, slower than the 6.8% growth recorded in 2018-19.

In the last few months, the finance minister has taken several steps to try and boost investor sentiment, and introduced measures to address sector-specific issues. The biggest one came in the form of a corporate tax cut to attract investments #casansaar (Source - PTI, LiveMint)