Should budget
date be advanced?
Fifteen years
back, the Union Budget was advanced by six hours from 5 p.m. on the last
working day of February, the Centre is contemplating unveiling it a month or
more ahead. Although the Budget is tabled before the commencement of a new
financial year in April, its provisions often do not become the law of the land
till some time in May, when Parliament passes the Finance Bill. There is little
action till, say, June.
In the past two
years public investment has been the government’s mantra to revive growth, and
is likely to remain the key determinant of the economy’s direction for a while. In our country middle income group people are more when compared with
higher with higher income and lower income people. Every year they are eagerly
waiting for relaxations in income tax provisions and exemptions. But, our
financial budget will be finalized into act only during May/June every year
instead of April month. Due to this the tax payers are unable to take a
decision and plan their statutory savings well before the starting of financial
year. Hence, it is better if our budget turns into act every year on first
April itself.
Any work done
for the goodwill of citizens is a commendable and appropriate for good
governance. After all budget is for the people. At the same time ITRs to be
filed also be finalised immediately after the
budget is approved so that one can file the same immediately after the
financial year is over. This will save a lot of time in completing the
assessments at an earlier date.
At best the
advancing the budget date will only make a marginal impact. At times funds
already available for a project remain unspent. Moreover, too much tinkering with
the rates of taxation is not good for business as it makes investments in long
term projects difficult for the private investors.
Life would
become so much simpler if the government also adopted the calendar year as its
financial year.
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