Budget 2026: Why Is India’s Union Budget Presented on February 1? Here’s Why the Date Was Changed

The Union Budget is one of the most important annual financial events in India. For Budget 2026, Union Finance Minister Nirmala Sitharaman will present the budget for the financial year 2026–27 on February 1, 2026. Today, this date feels routine to most Indians, but this was not always the case. For decades, the Union Budget was traditionally presented on February 28, a practice rooted in British-era conventions. Over time, the government realized the need to modernize the process, leading to a significant shift in both the date and timing of the budget presentation.

The Journey From February 28 to February 1

Before 2017, India’s Union Budget was presented on the last working day of February, usually February 28. This practice dated back to the colonial era when budget-related decisions were aligned with British administrative timelines. However, this system had practical limitations in independent India.

One of the biggest challenges was the short gap between the budget announcement and its implementation. Since the financial year begins on April 1, presenting the budget at the end of February left very little time for Parliament to pass the Finance Bill and for ministries and state governments to prepare for the rollout of new schemes and policies.

To address this issue, the government led by then Finance Minister Arun Jaitley decided to advance the budget date. From 2017 onwards, the Union Budget began to be presented on February 1. This change provided nearly two full months for administrative preparations, policy fine-tuning, and smoother implementation from the start of the new financial year.

Why the Earlier System Was Inefficient

Under the old system, many government departments faced delays in fund allocation and execution of development programs. States often had to wait for approvals, which slowed down public spending during the crucial first quarter of the financial year. Advancing the budget date helped eliminate these bottlenecks and improved overall fiscal planning.

Additionally, moving away from February 28 marked the end of a colonial-era tradition, aligning India’s budgetary process with its own administrative and economic priorities rather than inherited practices.

Why Is the Budget Presented at 11 AM Instead of 5 PM?

Not just the date, but the timing of the budget presentation has also undergone a major transformation. Until 1999, the Union Budget was presented at 5 PM. This timing, too, was a colonial legacy. In the United Kingdom, the budget was traditionally presented at 11 AM local time, which corresponded to 5 PM in India. Even after independence, India continued to follow this practice.

The change came during the Atal Bihari Vajpayee-led government. Then Finance Minister Yashwant Sinha proposed presenting the budget in the morning. His reasoning was simple yet practical—an 11 AM presentation would give Members of Parliament, economists, analysts, and the general public an entire day to study the proposals and engage in meaningful discussions.

Since 1999, the Union Budget has consistently been presented at 11 AM, a move widely appreciated for improving transparency and public engagement.

Merger of Railway Budget With Union Budget

Another landmark reform in India’s budgetary history took place in 2017, when the government decided to merge the Railway Budget with the Union Budget. For nearly 92 years, the Railway Budget was presented separately, usually two days before the main budget.

The merger aimed to simplify the budgeting process and present a clearer picture of government finances. It also helped in better allocation of resources and reduced duplication, allowing the Railways to benefit from overall capital planning rather than operating in isolation.

Why These Changes Matter

The changes in the budget’s date, timing, and structure were not merely symbolic. They were designed to make the budget process more efficient, timely, and aligned with modern governance needs. Presenting the budget on February 1 ensures faster implementation of policies, smoother fund flow, and better coordination between the Centre and the states.

In today’s context, where economic decisions have immediate and wide-ranging impacts, these reforms have strengthened India’s fiscal management framework. The practice of presenting the Union Budget on February 1 at 11 AM reflects a shift from outdated traditions to practical, forward-looking reforms focused on efficiency and accountability.

As Budget 2026 approaches, this evolved system continues to play a crucial role in shaping India’s economic direction and policy execution.