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Cabinet’s formal nod to be sought for Budget on Feb. 1 (Relevant for GS Prelims and Mains Paper II)

Presentation of Budget on Feb 1
The Finance Ministry has settled on February 1 as the new date for the presentation of the Union Budget, with the decision expected to be placed before the Cabinet for formal approval “soon.

Reason for advancing date
The idea behind bringing forward the Budget date, according to the government, is so that ministries and state governments can begin disbursing funds from the beginning of the financial year. 

At the moment, with the Budget being presented at the end of February, several processes, including the vote on account, result in disbursement of funds to various States only by late May.

Advancing the Budget date will allow funds to be released to States by April.

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