The process for green budgeting draws on the experience of gender budgeting in India. Considering the practice of multiple issue-based budgeting in India such as gender and child-budgeting in India, there is a need for a framework that will help in consolidating all these issue-based budgeting practices. Sustainable development goals (SDGs) can be used as a broader framework which can be supplemented and complemented by state and national goals on social, economic, and environmental issues over time. Accordingly, the following stepwise method is used.
| Step I | Articulating a working definition and formulating clear objectives |
|---|---|
| Step II | Defining the scope of green budgeting process |
| Step III | Developing an approach and methodology for soliciting inputs based on a framework which includes stakeholder mapping, Range Categories for Green Budget Statement and categories for mapping including themes, activities and goals |
| Step IV | Consultations with various departments with the finance department driving the convening and identification process of various line departments that directly and indirectly impact the environment through their policies and programmes |
| Step V | Finalize and refine pro-forma for soliciting inputs for ‘green budgeting’ |
| Step VI | Inputs by various departments in terms of identification of budget codes, schemes, financial allocation and green components along with descriptive summaries of how identified schemes are expected to make impact in addressing green outcomes |
| Step VII | Collation of inputs and preparation of green budget document which includes categorization of identified activites based on Range Categories and mapping of themes, activities and SDGs |