Three major changes were introduced by government:
- Advanced budget presentation date to 1st of February.
- Finished separate Railway Budget.
- Plan and Non Plan distinctions have been removed.
- Advancement of presentations date would lead to passing and release of funds earlier in year, this would lead to better funds utilization and policy implementation before Monsoon which hindered investments especially in physical infrastructure activities.
- Would help in better planning by business, both domestic and international.
- More time to utilise funds would help in preventing March rush (unnecessary spending before start of next financial year).
- Merger of Railway budget would save time and resources taken for extra exercises.
- Would help in better policy implementation, especially when India aims to achieve multi modal connectivity.
- Removing Plan and Non Plan classification would help reign in Populism, as there was always pressure on government to declare more plan expenditure than previous year.
- No distinction between Plan and Non Plan expenditure provides better overview of government’s revenue and expenditure and it is an international best practice.
There were some necessary reforms recommended by several high level committee like that of C. Rangarajan.