Unified Expense Account

Finance Minister will ‘present’ Rail Budget from next year

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In a major financial sector reform, India on Wednesday decided to do away with a 92-year-old legacy of separate general and railway budgets by unifying them, a tradition that has been continuing since British colonial times. The budget presentation date in all likelihood is being advanced to February 1 every year, from the last day of February as was the norm.

“From the coming year, the railway and the general budgets will be amalgamated. There will be only one budget. And secondly, distinction between plan and non-plan expenditure will be ended from next year. Consequently there will be only one appropriation bill,” Finance Minister Arun Jaitley said. Jaitley said over the years the general budget expenditures have gone up than the railways, and added that ministries like defence have more expenditures than railways but form part of the general budget.