The Union Budget is now presented on February 1, a trend well-established over the last few years. The Budget was earlier presented by the end of February, specifically the last working day of the month. So, why was the date changed, and what are the reasons behind it?
Shift in Budget presentation date
The shift in the Budget presentation date took place in 2017 under the tenure of Finance Minister Arun Jaitley. Before that, the Union Budget was presented towards the end of February, often on February 28. The change in date is aimed at streamlining the process and ensuring a timely presentation of the Budget.
Reasons for the change of date
The decision to shift the Budget to February 1 was driven by the need for more time to prepare for the new financial year, which begins on April 1. The government explained that presenting the Budget earlier would allow more time to implement new policies and make necessary changes for the upcoming financial year, thus ensuring a smoother transition.
In the past, the custom of presenting the Union Budget at the end of February often delayed proceedings. By the time the Budget was passed and implemented, it was already well into the new financial year. This meant that many policy decisions were often delayed, affecting their timely execution.
The change in date was not without controversy. A petition was filed in the Supreme Court challenging the move. The petition argued that shifting the Budget to an earlier date could allow the government to make populist promises to sway voters ahead of state elections. The Supreme Court dismissed the petition, stating that the Union Budget had nothing to do with states and that the frequency of state elections could not hinder the functioning of the Centre.
Timing changed
Another change was the shift in the time of day the Budget is presented. Until 1999, the Budget was presented at 5 pm on the last working day of February, a tradition rooted in the British colonial era.
In 1999, under the leadership of then-Finance Minister Yashwant Sinha, the timing was brought forward to 11 am. The move was part of an effort to make the presentation more accessible and transparent, allowing for greater media coverage and public engagement.
