Why railway budget presented separately?

Why our budget is presented on 28 Feb ? Needs change ?

• Since very long time the budget is presented in our parliament on 28 Feb why ? Earlier it was for the British rulers but now after 63 years we may think to present it in NOV for making effective from 01 Jan every year. We will be able to calculate every details year wise. Why there is no mood for change in our politicians/ Finance authorities / Industries ? Industries,Public & Govt will be able to do works with ease. What do you think ? In my opinion budget presentation must be done in 3rd week of Nov every year.

• Answer:

  The Financial year of the country, in line with international norm, is from 1st April to 31st March of next year. The amounts sanctioned under various heads for Govt. expenditure has to be spent within 31st March of next year. The Budget is therefore presented one month earlier so that there is sufficient time to discuss in the Parliament (and also the state legislatures for the state budgets) and approve the same before the onset of the next financial year, i.e. 1st April. Any unspent amount will lapse on 31st March. Achievement of targets for both expenditure and revenue, if discussed in Nov.,will be lop sided, as most collection and expenditure take place during the last quarter of the year. Presenting the budget during the middle of the month may not be practical due to vaious constraints like variation ofexcise duty proposals on stored goods etc. Earlier, during the British regime and for a long time after Independence, the budget was presented at 5.30 p.m. on last day of Feb., This was because, the British Parliament met at 11.00 a.m GMT only and the queen's govt. wanted to know the budget presented in India at the same time as it is presented here, counting the time difference of 51/2 hours between GMT and IST. The NDA Govt. dispensed with this practice and changed the budget presentation time as it is now.