Budget 2022: Decades-old budget traditions changed during Narendra Modi’s tenure

Decades-old budget traditions changed during Narendra Modi's tenure

Budget 2022: Union Finance Minister Nirmala Sitharaman will present the Narendra Modi government’s 10th Union Budget today (February 1). Meanwhile, you’ll need to brush up on your budgeting knowledge. We’ll tell you about the changes in budget traditions from the BJP-led Atal Bihari Vajpayee government to the Narendra Modi government at the centre.

The general Budget 2022 due date has shifted.

Before the Narendra Modi government took office in 2014, the budget was presented on the 28th or 29th of February, the month’s last day. However, the Modi government broke with tradition and moved the date of the general budget presentation from the end of February to the beginning of March. That is to say, the budget was first presented on February 1st. This was a significant shift in budgeting practises.

combining the railway and general budgets

In the race to change traditions, the Narendra Modi government worked to change the rail budget tradition, which had been in place since 1924, in the year 2016. Before 2016, the Railway Budget was presented separately a few days before the General Budget, but in 2016, then-Union Finance Minister Arun Jaitley mixed the Railway Budget and the General Budget together. The country’s first railway budget was presented in 1924, which is significant.

shattered the red briefcase tradition

If we look back at budget history, the country’s general budget has been presented in a red briefcase in Parliament since 1947. In 2019, Prime Minister Narendra Modi’s government changed this tradition, and instead of a red briefcase, the budget was wrapped in a red cloth and carried in the form of a ledger. On this change, Finance Minister Nirmala Sitharaman stated that the budget of the country is actually the country’s book, and that she has changed the nature of the budget.

The nobles were subjected to a surcharge by Modi.

The Modi government made yet another significant change, breaking many budgetary traditions. This change was the removal of the country’s nobles’ wealth tax and the imposition of a surcharge instead. The government increased the surcharge on the rich earning more than Rs 1 crore from 12% to 15% in the 2016 budget.

In the Vajpayee government, time had passed.

The BJP-led Atal Bihari Vajpayee government, which preceded the Narendra Modi government, had also changed an old budget tradition. Before 1999, all budgets were presented at 5 p.m., but in 1999, then-Finance Minister Yashwant Sinha defied tradition by presenting the general budget for the first time at 11 a.m. Since then, the budget has been presented at 11 a.m. in the Lok Sabha.