Every year, the Union Budget sets the tone for India’s economic priorities. As February 1 draws near, all attention is turning towards Parliament, where Finance Minister Nirmala Sitharaman presents the Union Budget. While February 1 is now firmly marked as India’s Budget Day, this convention has been relatively recent, coming from changes in administration and a departure from colonial practices.
From end-February to February 1
For so many years following the country’s independence, the Budget was presented on the last working day of February. This long-standing practice changed in 2017, when Finance Minister Arun Jaitley advanced the presentation to February 1.
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The shift was driven mainly by the need for smoother implementation. When the Budget was presented at the end of February, the government had barely a month to finalise approvals before the new financial year began on April 1. The earlier date now provides ministries nearly two months to prepare, ensuring that schemes and allocations can take effect from the very first day of the fiscal year.
Why ‘Vote on Account’ became largely redundant
The second significant impact of the February 1 switch was the removal of the “Vote on Account” in most years. Earlier, since the full Budget could not be passed before April 1, Parliament's permission had to be obtained by the government to meet essential expenses. With more time available, the full Appropriation Bill can now be cleared before the financial year begins.
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Breaking free from colonial-era timings
The timing of the Budget signifies the end of colonial ways for the country. Until 1999, the Budget speech took place at 5:00 pm IST, a time slot chosen to accommodate the timing of the London officials during the colonial era. In 1999, the finance minister, Yashwant Sinha, adjusted the timing to 11:00 am, discontinuing the connection with the British working hours.
In 2017, the government abolished the practice of presenting a separate Railway Budget, which had existed since 1924. The merger aimed to streamline finances and shift attention from short-term announcements to long-term infrastructure planning.
