InvestorQ : What did the current government achieve by advancing Union Budget to February 1?
Manisha Mehta made post

What did the current government achieve by advancing Union Budget to February 1?

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Suresh Patil answered.
2 years ago
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In 2017, Finance Minister Arun Jaitley moved away from the colonial-era tradition of presenting the Union Budget on the last day of February and advanced it to the first of the month- February 1. The rationale behind this was to give ministries the funds budgeted for them from the very beginning of the financial year, i.e. April. This way the various ministries can spend their funds in a more thought out manner. Furthermore, with this advancing of timeline, the government also gave additional time to corporates to adapt their businesses according to the new taxation regime (if any changes were made). Here are the other changes made to Union Budget presentation by various governments over time: - Until 1999, the Union Budget was announced at 5 pm on the last working day of February. - Ex Finance Minister Yashwant Sinha changed the timing of the Union Budget presentation from the previous 5pm to 11am in 1999. - Until 2016, the Union Budget used to be presented on the last working day of February - As discussed above, Finance Minister Arun Jaitley changed the tradition of presenting the Union Budget on the last day of February to the first of February (February 1, 2017) - Not just that, Finance Minister Arun Jaitley also did away with the Railway Budget, which used to be presented two days prior to the Union Budget and merged the two in 2017.
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