The Union Budget for 2017-18 could be a historic one for many reasons, not the least because it will be presented on 1 February instead of the traditional end-of-February ritual. The Cabinet Committee on Parliamentary Affairs (CCPA) today decided on budget presentation on 1 February while advancing the Budget Session of Parliament- it will commence from 31 January this year.
The budget this time is not only expected to assuage the aam aadmi with widely expected income tax sops, the very act of bringing it forward also means each department and ministry of the government will get funds for FY18 by the beginning of the fiscal year. Earlier, the budget proposals were presented at the end of February and cleared by around May. So, funds arrived well late into the fiscal, hampering smooth functioning of ministries. This budget will be historic for another reason as well – after 92 years, there will be no separate Rail Budget. The Rail Budget will be merged into the General Budget. With this merger, the Railways may be exempted from paying the annual dividend for getting gross budgetary support from the government.
So what to expect from a budget which may create history? The biggest expectation from the budget for 2017-18 is some sort of relief for the aam aadmi, who has been reeling under the after-effects of demonetisation. And indications are, the government may oblige with some relief in personal income tax. Finance Minister Arun Jaitley has himself indicated strongly that income tax sops are coming.