With new budget, chance for new vision for India

In most advanced economies, the annual budget is a non-event. In emerging markets, on the other hand, the budget presentation has special significance. In the case of India, the budget is a legacy inherited from colonial times to the extent that the timing of the presentation was also aligned with British time. Why does the budget hold so much importance? The answer lies in its modified purpose. While the budget was primarily meant for accounting in the British empire, it has since Independence meant to lay out the administration’s vision for the economy. Budget announcements at the beginning of a government’s term are even more important. This is because economic agents, market participants, and citizens expect the announcement to lay out the vision of policymakers over the term of the government, typically five years.