Why Was India’s Budget Traditionally Presented at 5 PM? The Colonial Connection Explained
For decades, India's Union Budget was presented at 5 PM, a practice that continued until 2001. But have you ever wondered why? The answer lies in India’s colonial past. The tradition wasn’t just about governance; it reflected British administrative influence.
For decades, India's Union Budget was presented at 5 PM, a practice that continued until 2001. But have you ever wondered why? The answer lies in India’s colonial past. The tradition wasn’t just about governance; it reflected British administrative influence.
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When the British ruled India, most administrative decisions were synchronized with London. The Indian budget was aligned with the British Parliament’s schedule so that financial markets in the UK could respond appropriately. Since London was about five and a half hours behind India, a 5 PM announcement in India coincided with working hours in Britain.
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Despite gaining independence in 1947, many British-era governance practices remained. The 5 PM budget presentation was one such practice that lingered for over five decades. It was seen as a continuation of the established financial procedures, even though India no longer had to align with London’s market hours.
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A 5 PM budget meant that Indian stock markets and businesses could only react to financial policies the next day. Unlike other major economies where budgets are announced in the morning to allow real-time market adjustments, India’s late-evening presentation led to a delay in economic responses.
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The British financial ecosystem heavily influenced India’s economic planning. Since British investors had a major stake in Indian businesses even after independence, aligning with London’s financial cycle was considered beneficial for ensuring smooth international transactions.
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In 2001, Finance Minister Yashwant Sinha changed the tradition and presented the budget at 11 AM. The decision was made to align with India’s economic needs rather than British-era administrative habits. This allowed the Indian stock markets and businesses to react immediately, making financial decisions more efficient.
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The move to an 11 AM budget presentation symbolized India’s break from colonial influences. It reinforced the idea that India’s economy was now independent, self-sufficient, and driven by its own market needs rather than foreign financial centers.
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A morning budget meant that government officials, economists, and businesses had a full working day to analyze and interpret the policies. It also made it easier for the public to understand budget implications without having to wait until late evening.
Rajni Pandey is a seasoned content creator with over 15 years of experience crafting compelling stories for digital news platforms. Specializing in diverse topics such as travel, education, jobs, science, wildlife, religion, politics, and astrology, she excels at transforming trending human-interest stories into engaging reads for a wide audience.
