Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 on July 23 at 11 am, a significant shift from India’s historical practice of presenting the budget at 5 pm. This change in timing, which was implemented in 1999, reflects India’s departure from colonial-era practices and a move towards more efficient governance.
The tradition of presenting the budget at 5 pm dates back to the colonial era. Given that Indian Standard Time (IST) is 4.5 hours ahead of British Summer Time (BST) and 5.5 hours ahead of Greenwich Mean Time (GMT), presenting the budget at 5 pm in India ensured that it coincided with daytime in England, at either 12:30 pm BST or 11:30 am GMT. This timing was chosen for the convenience of the British authorities.
In 1999, under the Atal Bihari Vajpayee-led government, Finance Minister Yashwant Sinha initiated a significant change by presenting the Union Budget at 11 am. Sinha, who served as India’s finance minister from 1998 to 2002, argued that adapting to England’s time zone was no longer necessary. The shift to an 11 am presentation allowed more time for parliamentary debate and for analyzing the budget numbers, fostering greater transparency and accountability in the budgetary process.
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The first Union Budget to be presented at 11 am was delivered by Sinha on February 27, 1999. This practice has continued to the present day, symbolizing India’s break from colonial traditions and its move towards a more independent and modern approach to governance.
Historically, India presented the budget on the last day of February. However, this practice was changed in 2017 under Finance Minister Arun Jaitley. Jaitley moved the budget presentation to February 1, providing additional time for implementing new budgetary policies before the financial year begins on April 1. This change was aimed at improving the efficiency of financial planning and policy implementation. Additionally, it marked the end of another colonial-era practice.
In the same year, the Railways Budget was merged with the Union Budget, ending a 92-year tradition of separate presentations. This merger was intended to streamline the budgetary process and ensure a more holistic approach to financial planning.
The Union Budget 2024 is being presented on July 23, a deviation from the usual February presentation. This adjustment is due to the election year, with an interim budget having been presented on February 1. The July presentation allows the newly formed government to outline its financial plans and priorities for the upcoming year.
The changes in the timing and date of the Union Budget presentations reflect India’s evolving approach to governance, emphasizing efficiency, independence, and the need to adapt to contemporary requirements. As Finance Minister Nirmala Sitharaman prepares to deliver the Union Budget 2024, these historical shifts continue to shape the nation’s financial and political landscape.