Budget 2027-28 preparations commence with pre-Budget meetings from October 12

The Finance Ministry has once again initiated the Budget making process for 2027-28 and has announced that pre-Budget meetings will commence from October 12.

To this end, the ministry has issued the customary Budget Circular 2027-28 putting in place timelines for each step of the process. The department of economic affairs (DEA) has asked all Central ministries and departments to submit Budget-related data through the Union Budget Information System (UBIS) by October 6. “Pre-budget meetings chaired by Secretary (Expenditure) shall commence from 12th October 2026,” it further said in the circular.

Since the process would require formulation of revised estimates for the current fiscal and Budget estimates for next fiscal, the DEA has also underlined the need for realistic projections.

“Proper expenditure estimation by ministries/departments would obviate need for routine/frequent mid-year reappropriations. Minimal mid-year additional resource requirements/mid-year reappropriations reflect good budgeting,” it said.

Further, all existing Schemes that are to be continued in the 16th Finance Commission period have to be appraised and approved. “It may be ensured that the final Expenditure Finance Committee Memoranda shall be forwarded to the DoE by the Ministries and Departments before their pre-budget meetings(s),” the DEA said.

Significantly, the Union Budget 2027-28 would also be the 10th consecutive Budget presented by Union Finance Minister Nirmala Sitharaman. The preparations for the Union Budget 2027-28 commence at a time of continued global volatility with the war in West Asia putting several of the projections for this fiscal under question. While the finance ministry is likely to undertake a review of these estimates relating to tax collections and fiscal deficit later in the year, the projections for next fiscal will also depend on these.

The government will also have to consider new ways to sustain the growth momentum and the push to capital expenditure may also continue in the coming year. The Union Budget 2027-28 may also have to make space for the award of the Eighth Pay Commission recommendations that will be effective from January 1, 2026.