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Finance Ministry to initiate first post-GST Budget exercise next week

It may also be the current govt's last full-fledged Budget as general elections are due in 2019

Press Trust of India  |  New Delhi 

Arun Jaitley
Finance Minister Arun Jaitley

Work on India's first post-Union 2018-19 will start next week with the ministry issuing timelines for different processes that will culminate with its presentation in February.

It may also be the current government's last full-fledged as general elections are due in 2019.


Even though independent India's biggest reform of was implemented from July 1, the for 2017-18 (April- March), had followed the practice of projections under the heads of customs duty, central excise and service alongside direct numbers.

With excise duty and service being subsumed in the Goods and Services (GST), the classifications will undergo change, an official said.

While a new classification for revenues to be accrued from will be included in the for next fiscal, for the current year two sets of accounting may be presented -- one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for and customs duty.

The official said that since the rates are decided by a Council, headed by Union Minister and comprising of representatives of all states, the for 2018-19 will not have any proposals concerning excise and service levies.

Only proposals for changes in direct taxes -- both personal and corporate tax, besides customs duty -- are likely to be presented in the along with new schemes and programmes of the

This will be Minister Arun Jaitley's 5th in a row.

It would also be the last full of the BJP-led NDA before the 2019 General Elections. As per practice a vote-on-account or approval for essential spending for a limited period is taken in the election year and a full-fledged presented by the new

While P Chidambaram had presented the previous UPA government's vote-on-account in February 2014, Jaitley had presented a full in July that year.

The official said the ministry will next week issue the circular and start consultations with other ministries from October for Revised Estimates (RE) of expenditure for the current fiscal.

The Circular contains the timelines for submission of information of requirements to the Ministry of along with prescribed formats.

The ministries will have to provide the actual money spent in 2016-17 along with the estimates and Revised Estimates for current fiscal.

Along with this, they have to give the they are expecting for 2018-19 as well, the official added.

Scrapping a colonial-era tradition of presenting the at the end of February, Jaitley had for the first time presented the annual accounts on February 1, 2017.

With the preponement of Budget, ministries are now allocated their budgeted funds from the start of the financial year beginning April.

This gives departments more leeway to spend as well as allow companies time to adapt to business and taxation plans.

Previously, when the was presented at the end of February, the three-stage Parliament approval process used to get completed some time in mid-May, weeks ahead of onset of monsoon rains.

This meant departments would start spending on projects only from August-end or September, after the monsoon season ended.

Besides advancing the presentation date, the scrapped the Plan and non-Plan distinction and merged the Railway with it, ending a nearly century-long practice.
What might change
  • The previous Budgets had followed projections under the heads of customs duty, central excise and service This classification will undergo a change
     
  • For the current year, two sets of accounting may be presented — one for actual accruals during April-June for excise, Customs and service tax, other for July-March period for and Customs duty
     
  • for 2018-19 will not have any proposals concerning excise and service levies

First Published: Mon, September 11 2017. 01:16 IST
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