Explained: Why The Union Budget Is Presented On February 1 Every Year

The Union Budget is one of the most closely watched events in India. It's when the government lays out how it plans to earn and spend in the coming year. 

The finance minister presents the Budget every year on February 1, but it wasn't always the case. Earlier, the Budget was presented at the end of February. So, why was the date changed to February 1?

Until 2016, India followed a British-era practice of presenting the Budget on the last working day of February. The problem was that the financial year starts on April 1, which meant ministries, businesses, and taxpayers had very little time to act on the new policies and tax rules.

By the time the Budget was approved and put into action, the new financial year had already started. As a result, many government plans and policies couldn't begin on time and were delayed.

In 2017, Finance Minister Arun Jaitley presented the Budget for the first time on February 1. Since then, the government has kept the early date. The objective is to give everyone more time to plan before the new fiscal year begins.

Similarly, the timing of the Budget was also changed from what had been followed since the colonial era. Until 1999, the Budget was presented at 5 pm. Yashwant Sinha, then-Finance Minister, shifted the timing to 11 am to allow for greater media coverage and better public engagement.

Controversy Around The Shift In Date

Soon after the government announced the change, a petition was filed in the Supreme Court challenging the move. The petitioner argued that presenting the Budget earlier could give the government a chance to make popular promises to attract voters ahead of the state elections. 

The Supreme Court rejected the petition, stating that the Union Budget is a matter concerning the whole country, not individual states. The bench said, "The Union Budget had nothing to do with states, and the frequency of state elections could not hinder the functioning of the Centre."