Government not allowed to reveal schemes for poll-bound states in budget, here’s why

When it comes to the Union Budget, the Government can go ahead with presenting it on February 1st even though elections will be held in five states over the next two months.

However, the government will need to follow the Model Code of Conduct and not announce any scheme or incentive for the poll-bound states, a government official told ET.

"Election code of conduct will have to be followed and there cannot be any announcement specific to the states that are going to polls,” the official said.

On February 1st, the Government is likely to present a merged general and railway budget in line with a plan to complete the process before the new financial year starts on April 1st, so that spending starts immediately.

Under the current timeline, spending starts almost after the first quarter of the financial year is over.

The Election Commission, while announcing the dates, said that it will review the decision to present the budget on February 1. Polls in some of these states start on February 4.

Political parties, including the Congress, the Left parties and the Samajwadi Party, have asked the Commission not to allow the Central government to present the budget as scheduled because sops that could be announced may influence voters.

"The Commission has received one representation sent by some political parties. This representation is with regards to presentation of the budget. The Commission is examining this representation and in due course of time will take a call on this,” Chief Election Commissioner Nasim Zaidi said.

"This is a constitutional requirement...There is no tradition like that,” said Arun Jaitley.

He said if demonetisation was not so popular, political parties shouldn't be worried. He said the object of an early budget is so that spending can start from April 1.