Union Finance Minister Nirmala Sitharaman is set to present the Interim Budget for the fiscal year 2024-25 on February 1. Here are 10 interesting facts about the Union Budget.
- Change in Presentation Date: Until 2016, the Union Budget was traditionally presented on the last working day of February. However, this changed with the presentation date now set for February 1.
- Historical Timing Shift: Until 1999, the Union Budget announcement occurred at 5:00 pm, following a colonial tradition. Finance Minister Yashwant Sinha changed the timing to 11 am starting in 2001.
- Halwa Ceremony Tradition: A week before presenting the Budget, a ‘Halwa ceremony’ is conducted where the Finance Minister distributes ‘Halwa’ among ministry officials, marking the beginning of the ‘lock-in’ period.
- Digital Transition: With the adoption of digital methods, the lock-in period has been reduced to just five days from the previous two weeks.
- Briefcase Tradition Discontinuation: The tradition of finance ministers carrying the Budget in a leather briefcase, in practice until 2018, has been discontinued.
- Paperless Budget Innovation: On February 1, 2021, Finance Minister Nirmala Sitharaman introduced the first paperless Budget using a digital tablet.
- Two Parts of the Union Budget: The Union Budget comprises two parts – the Annual Financial Statement and the Demand for Grants. The Annual Financial Statement summarizes the government’s revenue for the upcoming year, while the Demand for Grants outlines estimated expenditures.
- Parliamentary Procedure: The finance minister presents the Union Budget in a speech, which is followed by discussions and voting in the Lok Sabha.
- Mid-Year Review: A ‘mid-year review’ or ‘half-yearly report’ provides updates on the government’s financial performance during the fiscal year.
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Presidential Approval Tradition: Before presenting the Union Budget in Parliament, the finance minister meets the President at Rashtrapati Bhavan to seek approval, a custom followed for many years. Following the Budget speech, the finance minister, along with other ministers, engages in discussions with stakeholders.
Important Questions Related to Exams
- When was the Union Budget traditionally presented until 2016?
- What is the significance of the ‘Halwa ceremony’ in the budgetary process?
- How did the timing of the Union Budget announcement change in 1999, and who initiated this change?
- What marked the historic shift in the presentation of the Union Budget on February 1, 2021?
Kindly share your responses in the comment section.