Until 2016, the practice followed a British-era tradition, with the Budget being presented on the last working day of February. This left very little time for ministries, businesses and taxpayers to prepare before the new financial year began on April 1.
The Union Budget is one of India’s most important annual events, as it lays out the government’s plans for income, spending and economic policy for the coming year.
While the Budget is now presented on February 1, this was not always the case. Until 2016, the practice followed a British-era tradition, with the Budget being presented on the last working day of February. This left very little time for ministries, businesses and taxpayers to prepare before the new financial year began on April 1.
To address this issue, then Finance Minister Arun Jaitley advanced the Budget presentation date to February 1 in 2017. The move was aimed at giving stakeholders nearly two full months to adjust to new tax rules, policies and spending plans. The practice has continued since then.
The timing of the Budget presentation had also changed earlier. Until 1999, the Budget was traditionally presented at 5 pm, another colonial-era custom. That year, then Finance Minister Yashwant Sinha shifted the timing to 11 am to allow better media coverage and wider public participation.
The decision to present the Budget earlier had sparked debate. A petition was filed in the Supreme Court, claiming that an early Budget could help governments announce populist measures ahead of state elections. However, the Supreme Court dismissed the plea, stating that the Union Budget applies to the entire country and cannot be delayed due to state election schedules.
Earlier, delays in passing and implementing the Budget often meant that government schemes missed their planned start dates. Presenting the Budget on February 1 has helped ensure smoother implementation from the beginning of the financial year.
