Union Budget 2017
New union budget is about to introduce and the people are expecting more concrete budget as they are facing problems after the demonetization of currency notes. Union Budget 2017 seems to change the tradition of colonial-era in which the presentation of the union budget takes place on February 28 every year. On 26 October, Prime Minister Narendra Modi had given an indication that this time the budget 2017 would be introduced on 1 February. Apart from this, there are some Key Expectations in Union Budget 2017-18 Announcements likely to be occur according to the experts and the government. These changes in the union budget 2017 will balance the economic conditions of India more efficiently.
Union Budget 2017
Will the decision influence the Financial Year?
From many decades, the financial year runs from 1 April to 31 March. But as the new rules are expected to hold space in the near future, the possibility to make changes in such period is likely to occur. The government has been considering change the financial year coincide with the calendar year. So, the possibility is high to form new financial year, possibly 1 January to 31 December. This change will align India with the World Bank and International Monetary Fund and also with many countries.
As per a finance ministry source, “NITI Aayog has expressed the need to amend the financial year for better budget planning and 1 January to 31 December will be the best suited as most of the countries across the world follow it,”
On 6 July, under the supervision of Dr Shankar Acharya, former Chief Economic Advisor, the government constituted a four-member committee to scrutinize the need and effects of making changes in the financial year. By 31 December, the committee has to submit its report after considering over the issue. This has made it clear that this time the whole scenario of union budget goanna change.
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Union Cabinet to consider presenting Union Budget for 2017-18 on Feb 1
On 21 September, the Union Cabinet determined to terminate the tradition of the colonial-era of presenting the union budget on February 28 (29 February in case of leap year). It has decided to present the new budget on 1 February so that the legislative could speed up the approval for annual spending plans and tax proposals before running the new financial year that takes place on 1 April every year. This is not the first time that this change has occurred, during the rule of Atal Bihari Vajpayee’s NDA 1.0 government such change took place by the Finance Minster.
Benefits Of Advancing Budget Date
Experts have given clues about pros and cons regarding such decision, according to them, this will speed up the entire process of approval for annual spending plans & tax proposal, resulting in implementing the Finance Bill from 1 April instead of June.
Let’s Take A Look At What Expert Arun Kumar Said Regarding This Issue
“The advantage here is that the Finance Bill will be passed in the Parliament in the next two months — February and March, and expenditures can begin from 1 April, unlike now. As per the traditional practice, after presenting the Budget in Parliament on the last day of February, the Cabinet has the last month (March) left to get all the legislative approvals for the annual spending and tax proposals before the beginning of the new financial year on 1 April. Early presentation of Budget will help the entire exercise to get over by 31 March, and expenditure as well as tax proposals can come into effect right from the beginning of new fiscal, thereby ensuring better implementation,”
“Data for the current year is important for the formulation of budget. In the case of 28 February, we get quality data of nine to 10 months. By advancing the budget announcement date by a month, we’ll have a month’s worth of less data. Moreover, budget preparations have to be ready by December, so there is a need to speed up the data-availability process. It might lead to chances of substantial error, which is a matter of concern”
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Key Expectations In Union Budget 2017-18 Announcements
The cabinet is likely to merge the Railway Budget with General budget and may also take up the suggestion separation of the Budget into plan and non-plan expenditure, and replace it with Capital and Revenue expenditure.
However, the government will also focus on enhancing technology, raising infrastructure and will also lay focus on solar power, wind power, highways, employment and educational facilities.
Digital and cashless transactions are the area of concern after the government implemented demonetization of high currency notes, 500 Rs. & 1,000 Rs. notes. Cashless transactions will be given more privilege in the country. New and safer technologies for such transactions may access the country. According to Bhardwaj, “Demonetization has given us the biggest jhatka.” “Now, they have only two options: shut down or shift to the formal economy (where cashless transactions can be resorted to)”.
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