Budget 2026: Why Is the Union Budget Presented on February 1? How India Moved Away from a British-Era Tradition
The Union Budget for the financial year 2026–27 will be presented on February 1, 2026, by Finance Minister Nirmala Sitharaman. This year’s budget is special for more than one reason. Not only will it be her ninth consecutive Union Budget, but it will also be presented on a Sunday, a rare occurrence in India’s parliamentary history. While February 1 now seems like a routine date for the Budget, this was not always the case.
Until a few years ago, the Union Budget was traditionally presented on February 28. The shift in date and time is rooted in administrative reforms, practical governance needs, and the gradual departure from colonial-era practices.
Why Was the Budget Earlier Presented on February 28?
Before 2017, India followed a long-standing tradition of presenting the Union Budget on the last working day of February. This practice dated back to the British colonial period. At the time, the government believed that the gap between the presentation of the Budget and its implementation from April 1 was sufficient for administrative preparations.
However, as governance structures expanded and economic planning became more complex, this timeline started creating challenges. Ministries and state governments had very limited time to understand allocations, finalize tenders, approve schemes, and begin implementation. Often, delays in approvals affected development work during the crucial first quarter of the financial year.
Why Was February 1 Chosen for the Budget?
To address these issues, a major reform was introduced in 2017 by then Finance Minister Arun Jaitley. The decision was taken to advance the Budget presentation to February 1. This change gave ministries and state governments nearly two additional months to prepare for implementing policies and schemes from April 1.
The move also symbolized a conscious effort to break away from colonial-era administrative practices. Since 2017, the Union Budget has consistently been presented on February 1, making the process more efficient, predictable, and aligned with modern governance needs.
Why Is the Budget Presented at 11 AM and Not 5 PM?
Another lesser-known but significant reform relates to the timing of the Budget speech. Until 1999, the Union Budget was presented at 5 PM. This timing, too, was a colonial legacy. In Britain, the Budget is traditionally presented at 11 AM, which coincided with 5 PM Indian time during the colonial period.
Even after Independence, India continued following this schedule for decades.
When and Why Was the Timing Changed?
In 1999, during the Atal Bihari Vajpayee-led government, then Finance Minister Yashwant Sinha decided to shift the Budget presentation to 11 AM. The rationale was simple and practical. A morning presentation allows Members of Parliament, economists, analysts, media, and the general public to spend the entire day understanding, discussing, and debating the Budget.
Since then, 11 AM has become the standard time for the Union Budget presentation.
Railway Budget Merged with General Budget
Another historic reform came in 2017 when the Railway Budget, which had been presented separately for nearly 92 years, was merged with the General Budget. This move simplified the budgeting process and provided a unified view of government expenditure and revenue.
The merger helped reduce political symbolism and improved financial discipline by integrating railway finances with the broader fiscal framework.
Why Were These Changes Necessary?
The changes in the Budget’s date, time, and structure were not cosmetic. They were aimed at improving governance efficiency, ensuring timely implementation of schemes, and giving states adequate preparation time. Advancing the Budget helped align policy announcements with execution timelines, making financial planning more realistic and effective.
As Budget 2026 approaches, these reforms underline how India’s budgeting process has evolved to meet contemporary economic and administrative demands.
