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Budget Planning: Every year when the time of presenting the Union Budget comes, discussions intensify across the country. Will taxes increase or decrease, what will be the impact on inflation, whether the common man will get relief or not. But amid all this speculation, the actual preparation of the budget takes place in strict secrecy. This process, which lasts for months inside North Block, remains completely away from the eyes of the common people.

Why is it important to keep the budget secret

Budget is not just a statistical document, but it reflects the economic thinking, policies and priorities of the government. If any information to the budget comes out before time, it can have a direct impact on the stock market, business and investment. This is the reason why the budget is kept completely secret before presenting it in Parliament.

The first budget after independence and the big controversy of 1950

Very few people know that the first budget of independent India was presented on 26 November 1947. But the importance of secrecy of the budget was understood when the budget was leaked in the year 1950. At that time, the budget of the then Finance Minister John Mathai had come out before being presented in the Parliament. This leak damaged the government’s image and created a stir in the market. The situation became so bad that John Mathai had to resign from his post.

Strict rules changed after 1950

After this incident, the government decided to make the budget process more secure. The printing of the budget was shifted from Rashtrapati Bhavan to the government press located first at Minto Road and then at North Block. Along with this, budget work was limited to only selected officials. It is from here that the tradition of lock in period started.

What is lock in period?

Lock in period is the strongest link to the secrecy of the budget. As soon as the final draft of the budget begins to be prepared, the officials associated with the Finance Ministry and the printing press are locked in a confined premises. During this time, their contact with the outside world almost ends.

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No permission to go home, no mobile facility

Officers cannot go home during the lock-in period. Use of mobile phones, internet, personal phones and electronic devices is completely prohibited. There are very limited and controlled arrangements even for talking to the family. This situation continues until the Finance Minister gives the budget speech in Parliament.