Budget 2017: How Can Early Budget Help Better Implementation?

We heard about several New Year’s message from Narendra Modi this year. It seems that Narendra Modi is not just the one giving out New Year’s messages. On Thursday, Pranab Mukherjee delivered his New Year message to the Governors as well as lieutenant governors. The message talked about the extra carefulness that should be used to alleviate the sufferings of the poor. This message came just after the protest of the opposition parties against demonetization and Early Budget. Let me also tell you that the protest is against holding the budget on 1^st February.

• Reason for the change of budget from 28^th to 1^st:

The budget was scheduled to be released on 28^th February. But now, it has shifted from 28^th to 1^st of February. We also know that after three days itself, the state assembly polls will start. Initially, demonetization was speculated to be the reason for this change. But now, the opposition parties are worried that the release of budget at this time will help BJP to get benefitted from this. Well, if we listen to President’s words, he says that the budget date, demonetization and the state assembly elections must not be mixed up.

• Will This Really Help In Better Implementation?

If we listen to the opposition parties, this change in the date has been done so as to get benefit from the state assembly polls. While, if we listen to the government, this change was made so that it could help give approvals to annual spending in well defined time. This move would also help in giving tax proposals well within time.

Let me also tell you about what experts think of this shifting of dates. Well, experts believe that this advancement made in the budget announcement date will help the entire budgetary to be over by April. Also, the Finance Bill could be passed as well as implemented from April onwards. The above mentioned two procedures were earlier completed by June. Hence, due to this move, the companies and the households can plan out their savings, tax as well as investment plans.

It is also known that the Finance Bill and Appropriation Bill are passed in May. There are several tax proposals that can be passed only after the Finance Bill is passed. Hence, if the Budget is released one month prior, then the government will definitely get ample time.

• Final Conclusion:

If the budget is released on 1^st February, then obviously productive days will not be wasted. Also, the government will get more than one month period of time for the implementation part. This can also help the entire process to be completed by 31^st of March. Tax proposals as well as expenditures can be implemented from the beginning of the new fiscal itself. All of this would mean better implementation. But to really see whether this change in the dates of release of Budget announcements is of any use or not, we have no other option than to wait and see.