The Annual Financial Statement, also known as the Union Budget, is a government document that outlines projected expenses and revenues for the upcoming fiscal year, seeking parliamentary approval. This practice dates back to the 1860s, when officials of the East India Company introduced it in India.
The change in the budget presentation date was initially announced by former Finance Minister Arun Jaitley in 2017. Jaitley highlighted that ending the 92-year-old practice from the colonial era gave the government more time to prepare for new policies and changes effective April 1.
Jaitley also eliminated the tradition of presenting a separate budget for railways, integrating it with the Union Budget. Before 1999, the Union Budget was presented at 5 pm on the final day of February, following the practice in British India. Yashwant Sinha, the Finance Minister in 1999, proposed presenting the Union Budget at 11 am for a more thorough analysis, and this timing has been followed since then.
Regarding this year's interim budget, it is expected to be a placeholder with no major announcements, serving until the 2024 Lok Sabha elections and the formation of a new government. An interim budget, similar to a full budget, is presented and approved in the Lok Sabha. However, in the case of a vote-on-account, it is passed without extensive discussion, serving as parliamentary approval to withdraw funds from the Consolidated Fund of India from April to June or July until the new government presents its comprehensive budget.
Due to the Election Commission of India's code of conduct, the outgoing government is restricted from implementing significant tax and economy-related measures to avoid influencing voters. Taxpayers are likely to wait until the new government takes office in July for any major announcements.
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