Kerala FM Dr TM Thomas Isaac fixes Budget date on February 2

Thiruvananthapuram: Finance minister Dr T.M. Thomas Isaac had set the ambitious date of January 8 for the presentation of Budget 2018-19. However, he will do so only on February 2. The cabinet on Monday decided to recommend to the Governor to convene the Budget Session from January 22. By presenting the Budget at a relatively early date the objective is to begin the plan implementation process from April 1, the first day of the 2018-19 fiscal.

To facilitate an early budget presentation, the state government had drawn up a tough schedule for departments to submit their revenue and expenditure plans for 2018-19. 

Under the revised time-table, departments had to submit their non-plan revenue expenditure for the next fiscal (which includes salaries, and interest payments) by July 3, and their plan expenditure details, and also details of revenue and other receipts, by August 5. Normally, such details are furnished only towards the end of a year. Advancing budget presentation makes good economic sense. 

The usual practice of presenting budgets in the middle of March or the end of February has invariably delayed the implementation of budget plans. When budgets are presented in March, the 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 top Finance Department source said. 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. 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 a subject committee for detailed discussion. The subject 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.)