Why the Union Budget Presentation Time Changed From 5 Am to 11 Am?

The Union Budget will be presented by Finance Minister Nirmala Sitharaman on July 23 at 11 am. This budget is significant as it marks the first budget of the Bharatiya Janata Party-led National Democratic Alliance (NDA) after winning the general elections for the third consecutive term in June.

Two Budgets in 2024

This year, India will see two budgets – an interim one in February and a full one in July. The interim budget was presented before the general elections, as the incumbent government cannot present a full budget before elections.

Historical Time Change

• From 5 pm to 11 am- During the colonial era, the Union Budget was presented at 5 pm to align with British Summer Time (BST), which is 4 hours and 30 minutes behind Indian Standard Time (IST). This practice continued post-independence until 1999.
• In 1999, then Finance Minister Yashwant Sinha changed the presentation time to 11 am. This change reflected India’s independence from British time zones and allowed more time for parliamentary debate and analysis of the budget.

• Change in Budget Date- Historically, the Union Budget was presented on the last working day of February. However, in 2017, former Finance Minister Arun Jaitley moved the date to February 1. This change provided the government with more time to implement new policies and changes by the start of the new fiscal year on April 1.
• Integrated Railway Budget- The BJP-led NDA government also integrated the Railway Budget with the Union Budget, ending the practice of presenting a separate Railway Budget.

Budget 2024 Expectations

The Union Budget outlines the government’s projected expenses and revenues for the upcoming fiscal year. Expectations are high, particularly for income tax relief and changes in the tax regime.

Sneha Poddar, VP of research, broking, and distribution at Motilal Oswal Financial Services (MOFSL), expects the government to maintain its tax and non-debt capital receipt projections and stick to its fiscal deficit consolidation path. There may also be increased fiscal spending due to higher RBI dividends.

Additionally, the government is expected to focus on enhancing consumption through higher allocation for the rural economy, welfare schemes, and agriculture, with a continued emphasis on infrastructure, capex, and manufacturing.