The Union Budget, once traditionally presented by the end of February, has now settled into its new home on February 1st—a shift that has become the norm in recent years. But what sparked this change in date, and why has it become the preferred choice for the presentation?
Shift in Budget presentation date
The change in the Union Budget presentation date came in 2017 during Finance Minister Arun Jaitley’s tenure. Prior to that, the Budget was typically presented towards the end of February, often on the 28th. The shift was made to streamline the process and ensure the Budget is presented on time.
Reasons for the change of date
The decision to move the Union Budget presentation to February 1st was motivated by the need for additional time to prepare for the new financial year, which starts on April 1st. The government argued that presenting the Budget earlier would provide ample time to implement new policies and make necessary adjustments, ensuring a smoother transition into the new fiscal year.
Previously, the tradition of presenting the Budget at the end of February often led to delays in proceedings. By the time the Budget was passed and implemented, the new financial year had already begun, causing policy decisions to be delayed and hindering their timely execution.
However, the change in date wasn’t without its controversies. A petition was filed in the Supreme Court, challenging the shift, claiming that it could allow the government to make populist promises to influence state elections. The Court dismissed the petition, clarifying that the Union Budget had no direct link to state elections, and that the frequency of these elections could not interfere with the central government’s functioning.
Timing changed
Another significant change came in the timing of the Budget presentation. Until 1999, it was traditionally presented at 5 pm on the last working day of February, a custom dating back to the British colonial era.
However, in 1999, Finance Minister Yashwant Sinha shifted the timing to 11 am. This change was aimed at making the Budget presentation more accessible and transparent, ensuring better media coverage and encouraging greater public engagement.
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