Cabinet to discuss advancing Budget 2017 in three weeks time: Report

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Published: September 9, 2016 2:25:15 PM

Prime Minister Narendra Modi-led Cabinet is likely to decide on the proposal to advance the Union Budget for 2017 to January, as early as the end of this month.

Budget 2017, Budget 2017 news, Budget 2017 in JanuaryThe Modi government is likely to advance the upcoming annual exercise to the first week of February or last week of January.

Prime Minister Narendra Modi-led Cabinet is likely to decide on the proposal to advance the Union Budget for 2017 to January, as early as the end of this month. According to a BTVi report, a Cabinet note has been issued on advancing the Union Budget to January. Now, the Cabinet will take up the discussion of this note in the three weeks time, the channel reported. The note also seeks Cabinet nod to scrap plan and non-plan spending heads in the budget. Reports suggest that the revenue department is also mulling preponing its pre-budget meetings with various stakeholders to September instead of holding them in November/December.

Ending a colonial-era practice of presenting the annual Budget on the last day of February, the Modi government is likely to advance the upcoming annual exercise to the first week of February or last week of January, to ensure it hits the ground running from April 1. This is aimed at effective implementation of the government’s programmes and policies.

In the current system, the Budget exercise usually gets over by May and the government departments start spending based on it only from June, thereby losing two crucial months. The new financial year starts from April 1 with fresh allocations finally reaching the implementing authorities by May end (about two months into the new financial year). Pending Budget approval, the government seeks Parliament’s nod to meet committed spending requirements of April-May. This won’t be needed in the changed scenario.

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