PM holds first meet on FY17 Budget

Prime Minister Narendra Modi took a meeting on Budget 2017-18 with key ministers and officials on Wednesday afternoon, amid talk of advancing the traditional end-February presentation date to Parliament. “Preparations for the next budget have already begun. The PM called a meeting to study various aspects of overhaul of the budget making exercise,” said a source, who did not wish to be identified. Finance minister Arun Jaitley and his deputy, Santosh Gangwar, were among those present, the source said.

The finance ministry has proposed advancing the Budget presentation by about four weeks. The aim is to give sufficient time for departments to manage their spending.

The railway ministry's proposal to merge its budget with that of the Union is also being discussed. Indirect taxes could also be taken out of the main Budget, as the new goods and services tax is expected to take effect in 2017-18.

A second official said everyone was in agreement with the broad idea of advancing the Budget presentation but this would require thorough examination and consultation.

The Budget presently requires two-stage parliamentary approval, extending the process to May. Advancing the dates could allow approval by March 31 (when the financial year closes) and do away with the need for an interim vote on account. However, data availability would be an issue. The Budget also comes out with revised estimates for revenues  and expenditure from the year's start, as well as assumptions on economic growth.

Government departments are also mulling whether to advance the pre-Budget meetings with stakeholders to some time in September, as against December.

The government is also  considering advancing Parliament's winter session, from  the current practice of starting it  in November.