Correct Option
The Department of Economic Affairs (DEA), functioning under the Ministry of Finance, is the nodal agency responsible for the preparation and presentation of the Union Budget to the Parliament. Its key functions also include coordinating macroeconomic and fiscal policy formulation, and preparing budgets for Union Territories and states under President's Rule.
Incorrect Options
- Department of Revenue: This department is primarily responsible for the formulation and administration of tax policies, encompassing direct and indirect taxes through bodies like the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). It does not prepare or present the Union Budget.
- Department of Financial Services: This department oversees policies related to public sector banks, financial institutions, insurance companies, and pension reforms. Its mandate does not include the preparation and presentation of the Union Budget.
- Department of Expenditure: This department is responsible for managing public expenditure, formulating general principles of government accounting, and overseeing the financial rules and regulations. While it plays a crucial role in expenditure management and provides inputs for the budget, it is not responsible for the overall preparation and presentation of the Union Budget to Parliament.