Why is the budget presented only on 1 February?Image Credit source: ai generated
Budget 2026: Preparations for the general budget in the country are now in their final stages. The hustle and bustle in the Finance Ministry has intensified and like every time, this year too the country’s accounts will be presented in the Parliament on 1st February. But have you ever wondered why February 1 is the date chosen to present the budget? This question often arises in the mind of the common man. Apart from this, it is also very important to know what tax relief the employed and middle class families can expect from the upcoming Budget 2026.
How did the traditions of the British era change?
In Indian history, the date of presenting the budget was not always 1 February. Before 2017, the Union Budget was presented on the last day of February. This was a tradition that had been going on since the time of British rule and it was continued like this for decades after independence. But in the year 2017, Modi government decided to break this old tradition.
The then Finance Minister Arun Jaitley laid the foundation of this change and shifted the date of presenting the budget from the end of February to 1 February. The government’s reasoning behind this was very practical. Actually, the new financial year in India starts from 1st April. When the budget was presented at the end of February, the process of discussing it in Parliament and getting it passed took a lot of time. Many times, time would elapse till May or June, due to which there was a delay in releasing money for new schemes. With the presentation of the budget on 1st February, the government gets an additional time of two months, so that all the new provisions and fund allocations can be implemented smoothly from 1st April itself.
Will section 80C limit increase this time?
After the budget date, let us now talk about the issue which is directly related to your pocket. The biggest expectation of taxpayers from the upcoming Budget 2026 is regarding Section 80C. The limit of tax exemption available under Section 80C has remained stable for the last several years, while during this period the inflation graph has continuously gone up. The cost of investment in PF, PPF, ELSS and life insurance premium has increased, but the exemption limit has not increased.
Experts believe that 80C is the biggest support for taxpayers choosing the old tax system. Considering the current economic conditions, the current limit of Rs 1.5 lakh now feels quite low. If the government wants people to stick to the old system of savings and investment, then increasing this limit in this budget can prove to be an important step. This will not only provide relief to taxpayers, but will also encourage them to save more for the future.
Expectations of big relief for investors
Not only Section 80C, but the eyes of mutual fund investors are also fixed on the announcement of the Finance Minister. The organization of mutual fund companies ‘AMFI’ has sent its recommendations to the Finance Ministry for the Union Budget 2026-27. In these proposals, most emphasis has been given on increasing the savings of middle class families.
AMFI has advocated the government to encourage retail investors for long-term investment and provide tax relief. If the government accepts these suggestions, then small and medium investors investing money in mutual funds can get huge benefits. This will not only increase domestic investment in the stock market, but will also provide a better opportunity to the common man for wealth creation to fight inflation.