NEW DELHI: The Union finance ministry is all set to begin its preparation for Budget 2018-19, the first one after the GST roll-out, from the third week of this month. The ministry will issue the schedule during the week, for start of different processes that will culminate with its presentation in February.
The issue of timelines also puts an end to the speculation of an early Budget in December.
The GST Network’s inability to meet the pressure of tax filings has held back the calculations of the ministry and an advanced Budget in December is not a possibility now, sources in finance ministry said.
The finance ministry is scheduled to issue the Budget circular and start consultations with other ministries from October for seeking the details of revised estimates (RE) of expenditure for the current fiscal, sources added.
The ministries will have to provide the actual money spent in 2016-17 along with the estimates for the current fiscal. In addition, they have to give the budget they are expecting for 2018-19 as well, the sources added. Since Budget 2017-18 (April- March) had retained the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers, which were subsumed in the GST, the classifications will undergo change, sources noted.
GST rates are decided by GST Council headed by the Union finance minister and comprising representatives from all states. Hence, Budget 2018-19 will not have any tax proposals concerning excise and service tax levies, finance ministry sources said. Sources added that proposals for changes in direct taxes – both personal income tax and corporate tax, besides customs duty -- are likely to be presented in the Budget along with new schemes and programmes of the government.
It would also be the last full Budget of the Bharatiya Janata Party-led government before the 2019 general elections. India moved to a new Budget presentation date on February 1 against end of February, when Arun Jaitley presented the annual accounts on February 1, 2017. With the advancement of the Budget, ministries are now allocated their budgeted funds from the start of the financial year beginning April.
It gives more time for the departments to allocate the Budget at all levels.