Jaitley may not read out proposals on new trains, lines after budget merger
Finance minister Arun Jaitley may do away with the age-old practice of reading out lengthy proposals on new railway lines and trains once the 92-year-old colonial practice of a separate Railway budget is scrapped and merged with the general Budget.business Updated: Aug 22, 2016 19:47 IST
Finance minister Arun Jaitley may do away with the age-old practice of reading out lengthy proposals on new railway lines and trains once the 92-year-old colonial practice of a separate Railway budget is scrapped and merged with the general Budget.
Instead, these will be put in the form of an annexure in the Budget.
As part of a larger exercise of Budget overhaul, the government is looking at advancing the dates of presentation by a month to January-end to ensure the whole process is completed before the beginning of the next financial year.
“Advancing the date of Budget presentation to January-end is a suggestion. There are some data-related issues. We are seeing (it),” a top finance ministry official said.
The official added that advancing the general Budget presentation by a month to January-end will streamline expenditure.
“Currently, as the full Budget gets passed by May, most of the expenditures currently happen in the third or fourth quarter (of the financial year). If the Budget happens in January, expenditure can be streamlined,” he said.
While the Constitution does not mandate any specific date for presentation of the Budget, it is usually presented on the last working day of February and the two-stage process of parliamentary approval takes it to mid-May.
On merger of the railway budget with the general one, he said a decision is yet to be taken.
“Even if it happens, the finance minister will not read the proposal of laying new lines or new trains (in his Budget speech in the Lok Sabha),” the official said, adding that it would be put in the Budget as annexure.
Railway minister Suresh Prabhu has favoured scrapping the tradition of having a separate railway budget. He wants it to be merged with the general Budget like it happens in all other ministries, including the all-crucial Defence.
The finance ministry has also constituted a 5-member committee to work out the modalities for the merger. The committee has been asked to submit its report by August 31.
Another official said the finance ministry is considering advancing Budget presentation by a month to January-end. “But that doesn’t signal changing financial year soon,” he added.