ISAS Briefs

The Indian Government has taken three important decisions regarding the budget process: (i) to merge the railway budget with the main budget; (ii) to advance the budget presentation by a month from end February to end January; and (iii) to remove the distinction between plan and non-plan expenditures. Although not transformative, these three changes are positive developments, and together with the expected roll out of the goods and services tax (GST) starting next fiscal year, imply a significant overhaul of the budget process. This paper evaluates these changes