Recently, the Union Finance Minister took part in a traditional ‘halwa’ ceremony, signifying the final phase of preparing the Union
Budget for 2024-25, which will be presented in the Lok Sabha on July 23.
Understanding the Halwa Ceremony
The halwa ceremony is a longstanding tradition where the dessert ‘halwa’ is cooked and shared with the finance ministry officials
and staff who are involved in drafting the Budget. This ritual serves as a symbolic ‘send-off’ for those officials who then enter a
‘lock-in’ period. During this time, they stay in the basement of North Block, isolated from the outside world to ensure the secrecy
of the final budget document.
The origin of these strict measures can be traced back to an incident in 1950 when a portion of the Union Budget was leaked
while being printed at Rashtrapati Bhawan. The fallout from this breach led to the resignation of the then Finance Minister, John
Matthai.
Key Facts About the Union Budget of India
The Union Budget of India, also known as the Annual Financial Statement as per Article 112 of the Indian Constitution, is the
yearly financial statement of the Republic of India. Though commonly referred to as the “budget,” this term is not explicitly
mentioned in the Constitution.
Centre Reconstitutes NITI Aayog
The central government has restructured NITI Aayog, incorporating 15 Union Ministers, including members from NDA allies and
four full-time members. This reconstitution follows changes in the council of ministers.
National Institution for Transforming India (NITI) Aayog
Overview: NITI Aayog was established by a resolution of the Union Cabinet on January 1, 2015, replacing the Planning
Commission (established in 1950). It serves as the premier policy think tank of the Indian government, offering strategic and
policy inputs. NITI Aayog also fosters cooperative federalism by engaging states to act collectively in national interest.
Composition:
Chairperson: The Prime Minister of India
Vice Chairperson: Appointed by the PM, with the rank of a Cabinet Minister
Full-Time Members: With the rank of a Minister of State
Part-Time Members: Up to 2
Ex-Officio Members: Up to 4 Union Council of Ministers nominated by the PM
Chief Executive Officer (CEO): Appointed by the PM, with the rank of Secretary to the Government of India
Special Invitees: Experts with domain knowledge nominated by the PM
Governing Council of NITI Aayog: Chaired by the PM, the council includes Chief Ministers of all states and UTs with legislatures,
and Lt. Governors of other UTs. It also consists of the Vice Chairperson, full-time members of NITI Aayog, and special invitees.
The council is responsible for creating a shared vision of national priorities and strategies, facilitating discussions on
inter-sectoral, inter-departmental, and federal issues to accelerate the national development agenda.
Performance:
Action Tank: NITI Aayog gathers and disseminates fresh ideas to central and state governments to ensure organizational and
institutional dynamism.
Innovation Improvement: The Atal Innovation Mission, under NITI Aayog, has enhanced India’s innovation ecosystem.
Responsibility and Accountability: The Development Monitoring and Evaluation Office (DMEO) collects real-time performance
data from various ministries, used at the highest policy-making levels to improve performance.
Notable Initiatives: Ayushman Bharat, water conservation measures, artificial intelligence approaches, and POSHAN Abhiyaan,
aimed at reducing child malnutrition.
Promoting Federalism through NITI Aayog
Cooperative Federalism: NITI Aayog has created a platform for direct, issue-based interactions between states and central
ministries, facilitating the resolution of outstanding issues. The NITI Forum for North East has been established, with tangible
sectoral proposals being implemented in collaboration with the North East council. Additionally, NITI has designed major
initiatives for island development under the Ministry of Home Affairs’ guidance. Regional councils like the Himalayan States
Regional Council have also been formed.
Competitive Federalism: NITI Aayog promotes competitive federalism through sectoral indices on water, education, health,
innovation, export preparedness, and Sustainable Development Goals (SDGs). The Aspirational Districts Program introduces
competition to improve governance at the district level, resulting in significant improvements in health, nutrition, and education
indicators. Best practices from these districts are being scaled up and replicated at the block level in some states.
Reconstitution of NITI Aayog
Overview: The government has restructured NITI Aayog, increasing the number of special invitees from five to eleven, including
five ministers from BJP’s allied parties.
Key Post Holders:
Chairperson: Prime Minister Narendra Modi
Vice Chairperson: Economist Suman K Bery
Full-Time Members: Scientist V K Saraswat, agricultural economist Ramesh Chand, paediatrician V K Paul, and macro-economist Arvind Virmani
CEO: BVR Subrahmanyam
Ex-Officio Members:
Rajnath Singh (Defence)
Amit Shah (Home)
Shivraj Singh Chouhan (Agriculture)
Nirmala Sitharaman (Finance)