Why is the Union Budget always announced on february 1?
Every year on february 1, the Finance minister presents the Union Budget. On Wednesday, FM Nirmala Sitharam will deliver the budget for this year as well (February 1). However, up until a few years ago, the budget was announced around the end of february each year.
When former finance minister Arun Jaitley delivered the budget for the first time on february 1 of that year, this custom was altered. Since then, it has become customary to present the budget on february 1. At that time, it was also determined against having a separate budget for railroads.
But have you ever questioned the necessity of shifting the budget date? The budget date was changed for an unique cause. It used to be challenging to put the budget's provisions into effect for the following fiscal year, which begins on april 1. This was because the budget was given on the last day of February.
The budget was submitted at the start of february rather than the end of february in order to solve this issue. Not only that, but the budget used to be presented at 5 pm until 1999. However, the nda government at the time moved the budget presentation to 11 AM. Since the british era, this custom has existed.
The budget was presented in britain during the british Raj at 11 am local time, which was 5 pm in India. Even after independence, this custom remained the same.
However, the nda government's Finance minister Yashwant Sinha broke with convention on february 27, 1999, and delivered the budget for the fiscal year 1999–2000 at 11 a.m. Since that time, the budget is announced annually at 11 am.