Abstract

Budgets are an important tool for translating policies into action. They aid governments in implementing various programs and schemes in an orderly and planned manner. Most importantly, they are the documents that inform citizens of how their taxes are to be spent. But the processes by which the budget and budget documents themselves are prepared are shrouded in mystery. Citizens and civil society organizations find it extremely difficult to figure out the actual or budgeted expenditure on any particular subject of their interest. This Budget Toolkit seeks to address this need of guidance to understand the budgeting process and how to make sense of the budget itself.

This Budget Toolkit is presented in two modules, each consisting of several units. Module A provides an introduction to what budgets are, how they are prepared and the contents of the budget. As the principles underlying budgeting are essentially the same for union, state and local governments, the common principles and processes are presented along with variations, if any. Module B provides an insight into how the budgets can be analysed and interpreted. This is done using a few actual budgets. The main objective of this toolkit is to provide the reader with a self-help approach to understanding and interpreting budgets; and also serve as a training courseware for anyone interested in organizing a training programme.

CBPS. (2013). Understanding budgets: budget toolkit - a self learning guide. Bengaluru: Centre for Budget and Policy Studies.