Question

Discussion on budget cycle change: only a move of convenience

Answer 1

Budget circle means the life of a budget from its creation until it's evaluation. Similarly, small scale business cannot use the term "budget circle". The budget cycle however, is common to government agencies that are expected and charged with the responsibility to use transparent budgeting processes, hence, the concept is easily adapted to the needs of businesses. The budget cycle in most cases promotes due accountability and diligence and decisions are written at each stage.

Answer 2

The government of india has decided to advance the presentation date of the union budget by  month from february to january with an objective to get all allocations at different tiers dissaminated t budget holders, before the financial year begins in April 1.

The move of the government however not only breaks the established practice but is also considered fraught with number of issues which could hinder the correct or nearly correct estimation of expenditure and income of next year as well as the scrutiny issues.