India’s Union Budget for fiscal year 2025-26 is about to be presented infornt of the house but did you know this financial blueprint for the nation, underwent a significant change in 2017 when its presentation date was shifted from the traditional April 1 to February 1. But why?
Historically, the budget was presented on April 1, aligning directly with the start of India's fiscal year. However, this timing posed several challenges. With Parliament's approval process often stretching into the new financial year, ministries and states were forced to rely on a temporary “Vote-on-Account” to meet their expenditures for the initial months. This caused delays in the implementation of crucial schemes and projects, especially during the first quarter, which is vital for public spending.
To address these inefficiencies, the government decided to advance the budget presentation to February 1. This shift allows Parliament to debate and approve the proposals well before the fiscal year begins on April 1. As a result, ministries now receive funds on time, ensuring smoother execution of policies from the very start of the financial year.
Moreover, the new date gives policymakers the advantage of using updated economic data to frame relevant and effective policies. It also aligns with the global best practices of presenting budgets ahead of the fiscal year.
