Union Budget 2024: Why The Union Budget Presentation Time Changed From 11 Am?

Finance Minister Nirmala Sitharaman will present her seventh Union Budget on July 23, continuing the tradition of an 11 am presentation. This marks the first budget of the Bharatiya Janata Party-led National Democratic Alliance's third consecutive term, with expectations of significant policy announcements.

Finance Minister Nirmala Sitharaman will present her seventh consecutive Union Budget on July 23.

This marks the first budget of the Bharatiya Janata Party-led National Democratic Alliance (NDA) their third consecutive term began in June.

Photo Credit: PTI

The presentation is scheduled for 11 am in the Lok Sabha. Historically, the Union Budget was presented at 5 pm on the last working day of February until 1999. This timing was a colonial practice to align announcements with London time. The Indian Standard Time (IST) is 4 hours and 30 minutes ahead of British Summer Time (BST), making it 12:30 pm in the UK when it was 5 pm in India, as reported by First Post.

Change in Budget Timing

The tradition of presenting the budget at 5 pm continued even after India's independence. However, this changed on February 27, 1999, when then Finance Minister Yashwant Sinha shifted the presentation time to 11 am. He argued that this change allowed more time for parliamentary debate and analysis of the budget numbers, as reported by ANI.

Since then, all Union Budgets have been presented at 11 am. Continuing this tradition, Sitharaman will present the upcoming budget at the same time on Tuesday. A day before, on July 22, the annual economic survey will be presented.

Change in Budget Date

The date for presenting the Union Budget has also seen changes. Until 2017, it was traditionally presented on the last working day of February. Former Finance Minister Arun Jaitley moved this to February 1 to give more time for implementing new policies by April 1.

This shift marked another departure from colonial practices under the Narendra Modi-led government. Additionally, the BJP-led NDA government integrated the Railway Budget with the Union Budget, ending a long-standing norm of presenting them separately, as per media reports.

Budget Expectations

The Union Budget outlines projected expenses and revenues for the upcoming fiscal year. There are high expectations from this full budget presentation next week. The salaried class is hoping for significant income tax relief through changes in tax regimes and standard deductions.

Sneha Poddar, VP of research at Motilal Oswal Financial Services (MOFSL), told Mint, "We largely expect the government to continue with its tax and non-debt capital receipt projections presented during the Interim Budget in Feb'24 and stick to its fiscal deficit consolidation path." She added that increased fiscal spending might be possible due to higher receipts from RBI dividends.

Poddar also mentioned that there could be measures to support poorer and middle classes and boost consumption ahead of key state Assembly elections. "Apart from this, we largely expect the government's policy agenda to continue with a sustained focus on infrastructure, capex, and manufacturing," she said.

According to Care Ratings, this year's budget will likely aim to enhance consumption through higher allocations for rural economies, welfare schemes, and agriculture sectors.

This year sees two budgets – an interim one in February and a full one now – because an incumbent government cannot present a full budget before general elections, as reported by First Post. The customary Halwa ceremony marking the final stage of budget preparation took place recently in North Block with Sitharaman's presence.

The upcoming budget presentation continues traditions while adapting to modern needs and expectations. It aims to balance fiscal responsibility with measures to boost economic growth and support various sectors.