Winning Bizness Desk
Mumbai.During British rule, the budget was traditionally presented on the last day of February at 5 PM. This timing was chosen for the convenience of British officials, as India is 4 hours and 30 minutes ahead of Britain. However, in 1999, the Atal Bihari Vajpayee government changed this tradition, and since then, the budget has been presented at 11 AM. But why was this change made? Here are nine interesting facts about the budget process:
1. Are Budget-Making Officials Really Locked in a Basement?
Yes, this is true. Before the budget is presented in Parliament, around 100 officials and staff members involved in its preparation are confined in the basement of the Ministry of Finance for seven days. Their mobile phones are taken away, and they cannot meet anyone or go home. This is done to maintain the confidentiality of the budget until the Finance Minister completes the speech on February 1, preventing any leaks that could lead to market manipulation.
For instance, if someone learns that taxes on a particular industry will be reduced, they could buy large amounts of shares in that sector and make huge profits once the budget is announced. To prevent such practices, this lockdown is enforced.
The printing of budget documents takes place in the basement of the Finance Ministry. Before 1950, budget copies were printed in a government press at Rashtrapati Bhavan. However, after some documents were leaked in 1950, the printing was shifted to another government press on Minto Road in Delhi. In 1980, the press was relocated to the North Block’s basement, and since then, staff members have been locked in during the budget’s finalization and printing process.
Since 2021-22, the budget has been presented digitally via the ‘Union Budget Mobile App,’ reducing the need for printed copies. Consequently, the lockdown period has also been shortened from two weeks to one week.
2. What is the ‘Halwa Ceremony’ and Why is it Conducted?
Before the budget is printed, a traditional ‘Halwa Ceremony’ takes place. This is based on the Indian custom of starting auspicious tasks with something sweet. Finance ministers serve halwa to officials as a token of appreciation before they enter the lockdown period. This year, the ceremony took place on January 24.
3. Why is the Budget Presented on February 1?
Until 2016, the budget was presented on the last working day of February. However, in 2017, the Modi government moved it to February 1 for two reasons:
To provide more time for implementation, as passing the budget used to take until May.
The merger of the Railway Budget with the General Budget, which required additional time for execution.
4. Why is the Budget Now Presented at 11 AM Instead of 5 PM?
The tradition of presenting the budget at 5 PM was established during British rule for their convenience. In 1999, Finance Minister Yashwant Sinha changed the time to 11 AM, stating that India was no longer a British colony and could set its own schedule. This also allowed an entire day for parliamentary discussions on the budget.
5. Why Does the Financial Year Run from April 1 to March 31?
India follows a financial year from April 1 to March 31 for two main reasons:
1- The agricultural cycle aligns with this period, as Rabi crops are harvested around March, affecting economic activities.
2- British influence, as their financial year starts in April.
6. Why Does the Finance Minister Carry the Budget in a Red ‘Bahi-Khata’?
Until 2018, finance ministers carried the budget in a brown leather briefcase, following British customs. In 2019, Finance Minister Nirmala Sitharaman replaced it with a red cloth folder (Bahi-Khata) with the national emblem, symbolizing Indian traditions. In 2021, when the budget went digital, she carried a tablet inside the red cover.
