Union Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26 on 1 February 2025. But do you know that earlier in India the budget was presented not on 1 February, but on 28 February? There were many old traditions associated with British rule, which have now been changed. These include both the date and time of presenting the budget. Let us take a look at the reasons behind these changes and the interesting traditions associated with them.
Why did the budget start being presented on 1st February instead of 28th February?
Old tradition: Budget on the last day of February
Before 2017, the budget in India was presented on the last day of February. This was a tradition adopted during British rule. But this time frame was not practical for India.
Why did the change happen?
- Problems in preparation for the new financial year from April 1:
Since the budget was presented at the end of February, states and departments did not get enough time to implement it. - Delay in implementing provisions:
There were delays in implementing the budget and starting work on plans, which reduced the effectiveness of economic plans.
changes in 2017
The then Finance Minister Arun Jaitley decided to present the budget on February 1 to solve these problems. This helped the government and departments to plan and implement them on time before the start of the new financial year (April 1).
End of British tradition
Presenting the budget on February 1 was not just a matter of practicality, but it was also a big step towards breaking the traditions of the British era.
Budget presentation changed from 5 pm to 11 am
influence of the British era
- Before independence, the budget in India was presented at 5 pm.
- This time was decided according to Britain, where the budget was presented at 11 am.
- Since there is a time difference of 5.5 hours between Britain and India, the Budget in India was presented at 5 pm.
The tradition continued even after independence
Even after India’s independence in 1947, the tradition of presenting the budget at 5 pm continued.
changes in 1999
During the Atal Bihari Vajpayee government, the then Finance Minister Yashwant Sinha suggested changing this tradition.
- He said presenting the budget in the morning would give more time to MPs and experts to better analyze and discuss the budget provisions.
- Since then, the budget started being presented every year at 11 am.
modern perspective
The purpose of changing the timing of presenting the budget was to give a modern approach to the traditions of India and make it more effective.
Merger of railway budget into general budget
End of 92 year old tradition
Another significant change was made in 2017.
- Earlier, the Railway Budget was presented separately from the Union Budget.
- This tradition was 92 years old and every year the Railway Budget was presented two days before the Union Budget.
Reason for inclusion of Railway Budget
The then Finance Minister Arun Jaitley included the Railway Budget in the Union Budget.
- This made the budget process more simple and effective.
- There was no need for a separate budget for the Railways as it was seen in a holistic approach with other sectors.
Importance of changes in budget presentation
- Improve timeliness:
Presenting the budget on February 1 provided an opportunity to implement the schemes on time. - Effective discussion:
Presenting the budget in the morning gave MPs and experts time to understand and discuss it better. - End of British traditions:
These changes gave a modern perspective to the old traditions of India. - Consolidation of Railway Budget:
The integration of the Railway Budget into the Union Budget simplified the process and unified the focus.
