The government has kick-started preparations for the Union Budget 2027-28, with the Finance Ministry issuing the Budget Circular that sets out the framework, timelines and guidelines for the annual budget-making exercise.

The circular lays down the process for preparing the Revised Estimates for 2026-27 and Budget Estimates for 2027-28. Ministries and departments have been asked to submit detailed expenditure projections ahead of the pre-Budget consultations.

The pre-Budget meetings are scheduled to begin from October 12, 2026, while ministries and departments have been asked to furnish the required information by October 6.

The Budget exercise is expected to remain aligned with the government's broader vision of building a developed India by 2047. Accordingly, expenditure proposals will have to reflect approved government priorities as well as realistic assessments of resource requirements.

The Department of Economic Affairs under the Finance Ministry has stressed the need for realistic and accurate budgetary projections. It has also asked ministries and departments to minimise additional resource requirements during the course of the financial year.

The Budget Circular further emphasises that proposed allocations should have the approval of the competent authority and that continuing schemes should have approved expenditure plans in place.

As part of the exercise, ministries and departments will prepare their Detailed Demands for Grants through the Union Budget Information System (UBIS).

The government has also reiterated the need to maintain strict confidentiality of budget-related information. Financial Advisers have been directed to ensure that data entered into UBIS is handled only through prescribed secure systems.

The Budget Circular sets the stage for the government's first major fiscal planning exercise for 2027-28, with expenditure priorities likely to be calibrated against available fiscal resources and the government's longer-term objective of achieving the Viksit Bharat @2047 vision.