National Budget To Be Presented In January From Now; No More Separate Railway Budget 

New Delhi: Ending British colonial legacy, Narendra Modi-led NDA government has advanced Union Budget presentation by one month. Generally, Union Budget is presented on last day of February and from 2017-18 financial year onwards, it will be in January. The date of budget presentation in January is yet to be decided. As part of overhaul of the budget exercise, the NDA government has also decided to merge Railway budget with the Union budget. Presenting Rail Budget and General Budget separately was part of British era. The 2017-18 Union Budget will also see doing away with Plan and non-plan expenditure and to be replaced with Capital and Revenue Expenditure.

Another salient feature of the budget is lesser content. The Union Budget got slimmer as there wouldn’t be indirect tax proposals as excise duty, service tax and other cesses have been subsumed in Goods and Service Tax (GST) regime.

The main reason behind the change of budget schedule is to complete the process by March 31 so that policy transmission ensures funds availability for all the departments. The NDA government wants to complete the budget process before the end of the financial year so that departments will be in a position to spend the allotted funds.

The main reason behind the change of budget schedule is to complete the process by March 31 so that policy transmission ensures funds availability for all the departments. The NDA government wants to complete the budget process before the end of the financial year so that departments will be in a position to spend the allotted funds.

As of now, Parliament clears budget processing comprising Appropriations Bill for expenditure and Finance Bill for tax changes by second week of May. The government needs to take Parliamentary approval for spending during few weeks of new financial year. With advancing Union Budget to January, the government will be in a comfortable position to complete all formalities by March 31.

Meanwhile, the committee set up on changing financial year is expected to submit its report later in the year. The schedule of review meetings is also set for changes. The Revenue Department will also advance pre-budget review meetings to September from November/December.

Atal Bihari Vajpaee-led NDA government had changed the budget presentation timings to 11am. Until 1999, Union Budget used to be presented at 5pm. Vajpayee ended this practice of British government.