92-year old rule done away with. Now Railway and Union Budgets to be merged

The practice of putting up a separate Railway Budget has been officially ended by the Union Cabinet, by merging it with the Union Budget.

The practice of putting up a separate Railway Budget started in 1924.

Proposals by the Finance Ministry, to reform the entire budgetary process also got a green flag from the cabinet today. It included advancing the date of budget presentation and dropping the plan and non-plan expenditure distinction in the Union Budget.

The Budget date however, will be decided later. So far, the Union Budget was always held in the last 3-4 days of February. The government had earlier said it would like for the Union Budget to be announced in January.

An amount of about Rs. 10,000 cr. will be saved annually in this process.
(image:indiatimes)