Are Budget announcements effective immediately ?
No. All changes in policies and levies need to be made through the passing of the Finance Bill by both houses of Parliament. Some important changes (increase in fuel rates, for example) are made effective soon after the Budget through the issue of an ordinance by the President. However, these need to be later passed in the Finance Bill. The changes announced in the Budget which concern other Ministries are made effective when those Ministries issue notifications announcing them. For example, an initiative targeted at the textile industry will be taken up by the Ministry of Commerce and Industry. The Government also makes some statements of intent, which give broad direction to policy and may not necessarily translate into developments on the ground. An example of this would be the Government’s intent to disinvest its stake in public sector units. This may or may not result in the sale of the Government’s stake actually happening during the year. Last year, the Government planned to bri
