Union Budget 2024: Understanding the Shift to February 1

As Union Finance Minister Nirmala Sitharaman gears up to present the interim Union Budget 2024 on February 1, it's essential to delve into the rationale behind the shift in the budget presentation date from the end of February to the beginning of the month.

The tradition of presenting the Union Budget on February 1 was initiated in 2017 by then Finance Minister Arun Jaitley. The decision marked a departure from the colonial-era practice of presenting the budget towards the end of February, usually in the last week.

The primary motivation behind this shift was to bring an end to a practice inherited from the British rule. Arun Jaitley emphasized that presenting the budget in late February provided insufficient time for the government to formulate and implement new policies and changes within the span of a single month, especially with the fiscal year commencing on April 1. Hence, the date was strategically moved to February 1.

However, this wasn't the only reform introduced by Arun Jaitley. In a significant move, he also merged the Railways Budget with the Union Budget, discontinuing the practice of presenting a separate budget for the railways, a tradition inherited from British rule.

In the colonial era, the budget presentation had its own unique characteristics, including the timing of the presentation. Budgets were unveiled at 5 pm, aligning with British local time. Strikingly, even after India gained independence, this practice continued until 1999.

During the tenure of Atal Bihari Vajpayee's NDA government in 1999, Finance Minister Yashwant Singh proposed a shift in the timing of the Union Budget presentation. He suggested moving it to 11 am instead of 5 pm, allowing Parliament MPs more time for extensive discussions and debates on the proposed budget.

As the tradition of presenting the Union Budget on February 1 persists, it serves as a testament to the government's commitment to efficient policy-making and providing ample time for deliberation and scrutiny by parliamentarians. The shift in date not only modernized the budgetary process but also aligned it with India's evolving needs and priorities.