Finmin Mulls Over Presenting Union Budget in January

Govt feels the entire exercise should be over by March 31

Union Budget has for decades been presented on last day of February , but this could soon change with the government mulling advan cing it to January end so as to complete the budget exercise before the beginning of the new fiscal.

Finance Ministry is doing an overhaul of the entire Budget making exercise which may see scrapping of the current practice of presenting a separate budget for Railways and the Budget document getting slimmer with indirect tax proposals finding almost no mention after excise duties, service tax and cesses being subsumed in the Goods and Services Tax (GST) regime.

Also on the anvil is abolition of distinction between Plan and non-Plan expenditure and replacing it with capital and revenue expenditure.

Sources said the government is of the view that the Budget exercise should ideally be over by March 31every year as against the present practi ce of it being carried in two phases spread betwe en February and May . While the Constitution do es not mandate any specific date for presentation of the Budget, it is usual ly presented on last wor king day of February and the two-stage process of Parliamentary approval takes it to mid-May .

As the financial year begins on April 1, the go vernment in March ta kes Parliament approval for Vote on Account for a sum of money sufficient to meet expenditure on various items for two to three months. Demands and Appropriation Bill, penditure as well as tax entailing full year expenditure as well as tax changes, is then passed in AprilMay.

Sources said the finance ministry is of the view that if the process is initiated earlier, there would be no need for getting a Vote on Account and a full budget can be approved in one stage process before March 31. The proposal before the government is to present the Budget in last week of January, preferably on January 31 and ramp up the entire process by March 31, they said.

The revenue department is also mulling advancing its pre-budget meetings with various stakeholders to September instead of holding them in NovemberDecember. The annual financial document for 2017-18 is likely to see another major overhaul with the abolition of `Plan and non-plan expenditure' and replacing it with `capital and revenue expenditure'. The expenditure department in its pre-budget meetings with various other ministries and government departments will this time seek details of their envisaged revenue and capital expenditure from April 2017-March 2018.

The Economic Times New Delhi,22th August 2016