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Governance | Union Budget: From Colonial Roots to Contemporary Reform
🧾 Why India Presents Its Budget on February 1 — A Timeline of Change
The Union Budget of India, presented annually, plays a pivotal role in shaping the country’s financial trajectory. Since 2017, the presentation date was shifted to February 1, ending a colonial-era tradition and giving the government more time to implement policies before the fiscal year begins in April.
🕰️ A Look Back: Budget Timelines Through History
- Pre-2017: Budget was presented on the last working day of February, a colonial legacy.
- 1999: Finance Minister Yashwant Sinha changed the presentation time from 5:00 pm (British legacy) to 11:00 am.
- 2017: Finance Minister Arun Jaitley moved the date to February 1, giving the government more time for implementation.
📜 Why the Change?
- ✅ To break from colonial traditions
- ✅ To provide longer lead time for implementation
- ✅ To allow smoother financial planning across ministries and states
📖 Constitutional & Structural Overview
- 📌 Article 112: Refers to the Union Budget as the Annual Financial Statement.
- 📌 Article 110: Defines the Finance Bill as a Money Bill.
- 🧾 The Constitution does not use the word “budget” — a legacy term that has endured.
📂 Key Budget Components
| Document | Purpose |
|---|---|
| 🧾 Annual Financial Statement | Estimated receipts and expenditures |
| 💰 Finance Bill | Proposed tax changes |
| 📊 Demands for Grants | Ministry-wise expenditure proposals |
| 📘 Explanatory Notes | Breakdowns for transparency and clarity |
💡 Budget Classification
- Revenue Budget: Deals with routine income and expenditure, like taxes and interest payments.
- Capital Budget: Includes asset creation, infrastructure spending, and long-term investments.
🏛️ Post-2017 Reforms & Milestones
- 🔁 Railway Budget Merged with the Union Budget (first done in 2017).
- 🕓 Presentation moved from 5 pm to 11 am in 1999.
- 📆 Budget now on February 1, allowing better fiscal planning and legislative processes.
✍️ Fast Facts
- 🏛️ Union Budget preparation is overseen by the Department of Economic Affairs.
- 📆 India’s fiscal year runs from April 1 to March 31.
- 💬 Budget speech has two parts:
- Part A: Economic policy, government priorities, new schemes.
- Part B: Taxation proposals in the Finance Bill.
This year, Finance Minister Nirmala Sitharaman will present the Union Budget for FY 2025-26, outlining India’s financial roadmap amidst evolving economic priorities. 📊
