Why is the Union Budget presented on February 1 every year: Key things to know
FM Sitharaman is set to present her record 9th consecutive budget today at 11 am. She will present a statement of the estimated receipts and expenditure of the Government of India for the year 2026-27.
Union Finance Minister Nirmala Sitharaman and MoS Pankan Chaudhari arrived at the Kartavya Bhawan on Sunday ahead of the presentation of the Union Budget 2026-27 in the Lok Sabha during the ongoing Budget session of Parliament. FM Sitharaman is set to present her record 9th consecutive budget today at 11 am. She will present a statement of the estimated receipts and expenditure of the Government of India for the year 2026-27.The Finance Minister will also lay on the table two statements under Section 3(1) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.
Notably, Sitharaman presents Union Budget every year on February 1 at 11 am. This year also, Finance Minister Nirmala Sitharaman will present the Union Budget for fiscal year 2026-2027 on February 1, despite it being a Sunday. This marks the first time in India's history that the budget is being presented on a Sunday, emphasising the government's commitment to the February 1 timeline. Here is why the first day of February was selected for the presentation of the Budget:
The Union Budget is presented on February 1 each year to ensure timely parliamentary approval and smooth implementation at the start of the fiscal year on April 1. However, this was not always the case. During the British Raj, the Union Budget was presented on the last working day of February. However, this made late approval of the schemes and the policies announced in the Budget before the starting of the financial year on April 1. Moreover, other departments of the governments and businesses had very less time to make plans or adjust to the new policies announced in the Budget.
Earlier, the Union Budget was presented at 5 pm for convenience of the British Raj. However, in 1999, India decided to changed the timing of the presentation of the Budget to 11 am. Earlier, Finance Minister Yashwant Sinha, who first presented the Budget at 11 am, said that adapting to the British time was not required.
Later, Arun Jaitley in 2017 presented the Budget for the first time on February 1. Since then, the government has kept the early date. The objective is to give everyone more time to plan before the new fiscal year begins.
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