January 17 budget adds to better economics

Thiruvananthapuram: Though it has been prompted by the forthcoming Lok Sabha elections, advancing the presentation of budget 2014-15 to  January 17 makes good economic sense. The usual practice of presenting budgets in March or the end of February has invariably delayed the implementation of budget plans.

When budgets are presented in March, the state government is also forced to pass a vote-on-account. This is because it has been found impracticable for the legislature to complete the consideration of the budget and make appropriation for the new financial year before the start of the financial year on April 1.  So grants in advance for certain months (from April 1 until the Appropriation Act is passed) may have to be moved through a vote-on-account.

“A January budget theoretically leaves ample time for the legislature to finish discussion of budget demands before the end of March so that the administration could go ahead with implementing the plans right from April 1,” said public expenditure expert Dr Mary George.

The passage of a budget is a laborious process. Each budget demand will have to be first introduced in the Assembly. Then it will be referred to the  subjects committee for detailed discussion.

The subjects committee, after incorporating its suggestions, will send the demand back to the legislature. Another round of discussion will take place before the demand is passed. There are 46 such demands. (Demand one, for instance, is state legislature. The 46th is social security and welfare.)