Budget 2024: Why The Budget Is Presented On February 1?

Union Finance Minister Nirmala Sitharaman is set to present the Interim Union Budget 2024 on February 1.

The traditional budget presentation date has been February 28 (or 29 in a leap year), but the change in date to February 1 was instituted in 2017 during Arun Jaitley's tenure as the finance minister. The practice has since continued.

The decision to alter the budget presentation date was rooted in the government's assertion that the shift would allow for better preparation of new policies and changes for the upcoming fiscal year, commencing on April 1.

The longstanding practice of unveiling the Union Budget on the last working day of February was deemed to cause delays in passing the budget, affecting the timely initiation of the new financial year.

Despite facing opposition, including a petition filed in the Supreme Court by advocate ML Sharma, the court rejected the plea. Sharma had contended that altering the budget presentation date could enable the government to influence election outcomes through populist spending promises. However, the court emphasised that the Union Budget primarily concerns the Central government and is not tied to state elections.

Traditionally presented at 5 pm on the last working day of February since the British era, the timing of the Union Budget saw a shift in 1999 when then Finance Minister Yashwant Sinha moved it to 11 am.

A day before the budget presentation, the government releases the Economic Survey. This report serves as a comprehensive analysis and report card on the economic situation of the country, setting the stage for the upcoming budget.

A brief Budget session of Parliament, the last of the 17th Lok Sabha, will be held between January 31 and February 9. The new government, which will be sworn in after the Lok Sabha polls expected in April-May, will present the full-fledged budget later.