Section 228: Budget of the Insolvency and Bankruptcy Board of India
Section 228 of the Insolvency and Bankruptcy Code, 2016 requires the Insolvency and Bankruptcy Board of India (IBBI) to prepare an annual budget for the following financial year, showing estimated receipts and expenditure, and forward it to the Central Government.
Section 228: Statutory text
228. The Board shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the Central Government.
The provision above reproduces the text in the supplied webpage. Consult the official statutory database and applicable rules for authoritative, up-to-date requirements.
Meaning of Section 228: Key legal requirements
1. Mandatory annual budget
The word shall imposes a statutory obligation on the Board to prepare its budget. The budget relates to the next financial year, not merely the year in which the document is prepared.
2. Prescribed form and timing
The Board must prepare the budget in the form and by the time prescribed under the applicable rules. Section 228 itself does not specify a calendar deadline or a mandatory template; those details must be checked against the current subordinate legislation.
3. Estimated receipts
The budget must show the Board's expected receipts. These may include categories of receipts lawfully available to the Board under the IBC, such as grants, fees and charges, subject to the governing provisions and actual anticipated collections.
4. Estimated expenditure
The budget must also estimate the Board's expenditure for the forthcoming financial year. This may relate to staffing, administration, regulatory operations and other purposes authorised by the Code, subject to applicable rules and financial controls.
5. Forwarding to the Central Government
After preparing the budget, the Board must forward it to the Central Government. Section 228 expressly requires forwarding; it does not itself state that the Central Government approves each line item or that budget submission replaces other applicable financial authorisations.
How the IBBI budget fits into financial governance
Budgeting is a forward-looking process: it sets out projected income and expenditure before the next financial year begins. It should be distinguished from accounts and audit, which concern recording, examining and reporting financial transactions and balances.
Illustrative budget items
For example, a budget might estimate regulatory fee income and government grants on the receipts side, and personnel costs, technology, inspections and administration on the expenditure side. These are illustrations, not statutory budget headings mandated by Section 228.
Definitions and legal context
Board: The Insolvency and Bankruptcy Board of India, established under Section 188 of the IBC.
Financial year: The annual accounting period for which the Board prepares its budget; the applicable financial framework determines the relevant period.
Estimated receipts: Anticipated amounts expected to be received during the next financial year, rather than audited amounts already received.
Estimated expenditure: Anticipated spending in the forthcoming financial year, rather than actual expenditure already incurred.
Prescribed: Determined by rules made under the Code where the legislation uses this expression.
Related provisions of the Insolvency and Bankruptcy Code
- Section 188: Establishment and incorporation of the Insolvency and Bankruptcy Board of India.
- Section 196: Powers and functions of the Board, which inform its operational expenditure.
- Section 221: Grants by the Central Government, subject to parliamentary appropriation.
- Section 222: The Fund of the Insolvency and Bankruptcy Board, including receipts and permitted uses.
- Section 223: Accounts and audit, addressing financial records, CAG audit and parliamentary reporting.
- Section 229: Annual report of the Board, a separate reporting requirement.
Read the Insolvency and Bankruptcy Code, 2016 overview. For official primary material and updates, consult India Code, the IBBI legal framework, and the IBBI official website.
Frequently asked questions
What does Section 228 of the IBC require?
It requires the IBBI to prepare its budget for the next financial year, showing estimated receipts and expenditure, in the prescribed form and at the prescribed time, and forward it to the Central Government.
Does Section 228 prescribe a fixed budget submission date?
No. The section refers to a time that may be prescribed; the current applicable rules must be consulted for specific procedural requirements.
Is the IBBI budget the same as its audited accounts?
No. A budget contains forward-looking estimates under Section 228. Accounts and audit are addressed separately under Section 223.
Who receives the budget under Section 228?
The Central Government. This forwarding requirement is expressly stated in the section.
Reviewed: 23 October 2026. This article provides general legal information; the official legislation and rules prevail if there is any difference.