Why Budget only on 28th Feb?

The Union Budget is the biggest event for the stock markets; it is like the Oscars for the movie industry. And the markets start moving almost one month before the budget, in anticipation of the sops which could come. The pre-budget rally is as important as the Budget itself. And the day of the Budget, the market has this palpable, almost tangible excitement, with stocks poised for take-off or landing.

But this year, we have a predicament; the biggest event of the stock market comes on a Saturday. 28^th Feb, the date of the Budget is a holiday and this is like such a big letdown for all the traders and marketmen. The BSE and NSE are supposedly in talks with SEBI to allow trading on 28^th though no word yet on the same.

And that makes us wonder – why is the Budget always on 28^th of Feb? If this fell on a Saturday, why was it not held on 27^th, which is a Friday or on 3^rd which is a Monday’; all such confusion could have been avoided. Well, 28^th Feb is a tradition as the Lok Sabha needs one month to review and modify the Budget proposals. The new fiscal begins on 1^st April and most Budget proposals come into effect from that date and that’s why the pressure to have it on 28^th. Even then, holding it on 27^th would have not have caused any harm. Would that have required too much courage; to do things differently or for the convenience of the markets?