Union Budget 2026 : Why was Budget presentation date changed to February 1? Here's what we know

The timing of India’s Union Budget is closely linked to the country’s fiscal calendar, which runs from April 1 to March 31. Understanding this connection helps explain why the Budget is presented well before the start of the financial year—and why the timing has evolved over the years.

India used to follow a British-era practice of presenting the Budget on the last working day of February. While this tradition had been in place for decades, it created a practical problem. By the time the Budget was approved and circulated, ministries, businesses, and taxpayers had very little time to implement new policies or adjust to revised tax rules before the new fiscal year began on April 1.

Projects could be delayed, allocations postponed, and tax planning became a race against time. To address this, the government moved the presentation date to February 1, starting with the 2017–18 Budget.

This shift, aligned with the fiscal calendar, provides at least two months for stakeholders to plan, ensuring that policies, spending programs, and tax measures can take effect from the beginning of the financial year. The earlier date also allows ministries to fine-tune their spending plans and ensures better coordination with state governments, public sector enterprises, and private businesses.

The fiscal calendar also influences other aspects of the Budget. For instance, borrowing schedules, revenue collection, and expenditure targets are all planned in line with the April–March cycle. By presenting the Budget early in February, the government sets the stage for smooth financial operations, ensuring that funds are allocated and disbursed in time for key programs like rural development, infrastructure projects, and social welfare schemes.

Timing tweaks in the past, such as moving the Budget presentation from 5 pm to 11 am in 1999, were also motivated by efficiency and public engagement rather than tradition. By aligning the Budget closely with the fiscal calendar, India has created a system that balances parliamentary procedures, media coverage, and economic planning.

In essence, the fiscal calendar is the backbone of Budget planning. The February 1 presentation is no arbitrary date—it is carefully timed to ensure that policies, priorities, and funds are in place right from the start of the financial year, allowing the government and businesses to plan and act without delay.