When will we say No to Union General Budget?

Indian Fiance Minister Arun Jaitley will move the second General Budget on 28th February 2015. The first one he introduced was only a few days him taking over finance portfolio and possibly many of the promises made in the BJP (read NDA) manifesto could not be included.

Now that the finance minister has set up a group of chosen bureaucrats for making the budget exercises, including a new chief economic adviser, who has been drafted from  academics and has an orientation in multilateral organizations.  Newspapers, specific lobby groups, trade unions  etc, will be active in the coming days in pouring their views and suggestions. Also, the new regime is actively encouraging every citizen to participate in the budget making. In all such suggestions, there will be a post script that  the measures are meant to revitalize the economy.

 Interestingly, in today's Times of India, there is an edit page article written by one NY Krishnakumar, who has introduced himself as a money manager titled " Disrupt and Grow". He has alluded to disruptive innovation of budget process and tax procedures to improve financial transparency and tax terrorism. He has also suggestions for disrupting the government departments to make them more functional.

I eagerly went through his suggestions whether he has made any exhortation on abolishing the Budget. There is no such suggestions expressed. I do not know whether he intended one. If he has suggested that measure, I would have completely agreed with him, Because the Budget exercise has become mundane and more ceremonial than anything else.

I do not know presentation of General Budget by the union government is a constitutional provision or not. Assuming that it is a constitutional provision, Budget means only presentation of accounts that is Revenue and Expenditure for the next year. it should not be clubbed along with announcement of slew of measures supposedly to kick start the economy. Many had voiced this view several times. But the Budget exercise continues as it is, though  with some cosmetic changes.

Let me talk about one of  of the cosmetic changes that have been effected over the years. A few years back, the Budget was presented on the last day of February barring a Sunday  and the Budget proceedings would start sharp at 5 PM. I used to often wonder why at 5 PM? No one could give me a proper explanation. Later, I came to know that it was something followed by the British to synchronize Indian time  with he British since   some of the tax proposals in India was eagerly  awaited  across the continent particularly by the so called FERA companies.  A lot of speculative activities were carried out  in anticipation of the Budget. Thankfully, we had snapped the bonds with that heritage. Could we now de-link our major decision making process  from the Union Budget and take them at our will and when needed. The government that did away with Planning Commission can do this also. Are the Prime Minister and Finance Minister listening?

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