Budget on February 26

Finance Minister Pranab Mukherjee has conveyed to Prime Minister Manmohan Singh that he wants to present the Union Budget on February 26.

The Budget is usually tabled in Lok Sabha on the last day of February. This year, February 28 is Sunday. Government managers had initially planned to table the Budget on February 27 but Prophet Mohammad’s birthday falls on the same day, which makes it a public holiday. Mukherjee is cautious and doesn’t want to hurt religious sentiments by making it a special working day of Parliament. The minister doesn't want a special sitting of Parliament on Saturday either as he wants a quick reaction to the budget from the stock markets.

He discussed the Budget timetable with Parliamentary Affairs Minister Pawan Bansal over lunch today. “We are living in a globalised economy. So we should try to present the Budget on a day when the stock market is open. The reaction of the market is an important thing as far as the government’s Budget is concerned,” Mukherjee told Business Standard .

According to him, the Budget could have been presented in March but the first day of March is also a holiday because of Holi. Mukherjee also doesn’t want to stretch the process further and wants the Finance Bill to be passed as early as possible. “In 1976, the Budget was placed before Parliament in mid-March so there is precedence. But I also had to keep in mind that there is a 75-day window to pass the Finance Bill after the Budget has been table. I don’t want to drag this schedule,” Mukherjee said. On 23 occasions since Independence, the full Budget has not been presented on the last day of February.

Government managers are planning to call the Parliament session on February 22 (Monday). President Pratibha Patil will deliver the customary speech to the joint session of Parliament on that day. The Railway Budget is likely to be placed on February 24, followed by the Economic Survey the next day.

Mukherjee has started his pre-budget consultations with the various interest groups and these meetings are likely to continue for the next two weeks. Apart from meeting the industry associations, Mukherjee has also met farm lobbies and construction sector representatives. He is yet to meet trade unions and economists. Mukherjee has also made a special “Dak file” to enlist petitions and letters sent by post from various parts of the country.