On Tuesday, the Cabinet Committee on Parliamentary Affairs (CCPA) recommended that the Union Budget be presented in Parliament on February 1. On Wednesday, the Election Commission came up with the dates of the much-anticipated elections in five states – Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur.
Neither the budget date nor the election dates were a surprise. The government had held several meetings and surveys before deciding to advance the dates of the Budget for better implementation of the economic decisions. Also, the dates of the elections cannot be postponed as the assembly session is due to expire.
But can a Budget be announced at a time when the model code of conduct is in place? The opposition is vehemently opposing the same. Political parties have knocked the President and the Election Commission’s doors to postpone the announcement of the Budget, fearing that poll cops might be announced to lure the public.
However, is it fair to delay the budget of the country (which has 29 States 7 Union territories) as just five states are going to polls?
The opposition claims that by making attractive announcements in the Budget, the government can indirectly grab votes. “Advancing the presentation of the Budget gives an unfair advantage to the ruling party to influence voters by announcing populist schemes, thereby undermining a free and fair election. Therefore, it is our considered view that the presentation of the Budget, instead of being advanced, should be postponed to only after the assembly elections,” Congress leader Ghulam Nabi Azad said.
Why was the decision to advance the Budget session taken?
The move is aimed at improving the financial planning of the government. As the enactment of the new Budget takes time, the spending in the first quarter is usually haywire. The decision is likely to positively influence the spending done by various ministries during the first quarter of the financial year.
The move eliminates a time gap
On February 28 every year, the General Budget is tabled before Parliament. Though the financial year begins in April, the Budget often is not able to be enacted until May after the government passes the Finance Bill. In effect, the Budget is utilised after July up till March rather than through the year. An early Budget might ensure that there is no delay in bringing the policies and plans into shape.
What all does the Budget expenditure include?
The Budget is classified into the following expenditure:
– Plan vs Non-plan and Capital vs Revenue expenditure
– Capital expenditure which is used to create assets or reduce liabilities, like building roads.
– Revenue expenditure which is used to for other expenses like those done on salaries or other administrative costs.
How long does it take for a Budget to be passed in Parliament?
Until last year, the budget session was held from February to May. The Budget used to be tabled on February 28 which is followed by a general discussion on the budget measures. Thereafter, Parliament goes into a recess for about three weeks wherein the estimates of ministries’ expenditure are examined by Standing Committees of Parliament. Once the committees submit reports, a detailed discussion takes place in Parliament where MPs can demand a reduction the grant for ministries.
After the discussions, an Appropriation Bill is introduced and voted on, which authorises the government to spend money from the Consolidated Fund. The Finance Bill is then taken up and passed in the Lok Sabha.
Has a Budget ever been delayed in the past?
The discussion on postponing the Budget must be a deja vu moment for many. It was a similar situation when five years back, the dates of the assembly session of Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa were coinciding with the dates of the Budget. In a departure from the schedule, the government presented the general Budget on March 16. So yes, it was for the same states, five years back that the Budget was delayed.
Why should political parties stop opposing timely Budget?
An early passage of the Budget will help the government revive growth of the economy. It may allow the ministries to timely plan their spending and implement the policies proposed in the Budget. Politics aside, the decision is likely to bring a positive change in the financial cycle of the country.
