Certainly, the question arises: Does time truly hold significance in budget speeches? Opinions on this matter may vary; some argue in favour, while others may oppose the idea. From a general standpoint, there is an expectation for the Finance Minister to provide a detailed overview of the economic condition and plans for the upcoming year.
The ongoing discussion in the media revolves around comparing the record-breaking budget speeches delivered by the nation’s Finance Minister, Nirmala Sitharaman. In 2020, she presented a speech that extended for a remarkable 2 hours and 42 minutes, while in the 2024 Interim Budget, the duration was notably shortened to 58 minutes. Various social media platforms had discussed the length of the budget speech.
On February 1, 2024, at 11 am, Union Finance Minister Nirmala Sitharaman delivered the Interim Budget for the year 2024 before the parliament. The address concluded in a succinct 58 minutes, with no significant tax proposals introduced. Sitharaman emphasised the economic reforms implemented during the past decade of the Modi Government. Notably, this marks her first Interim Budget after presenting five complete budgets.
In 2019, the Finance Minister, succeeding the late Arun Jaitley, delivered her inaugural budget speech, lasting 2 hours and 15 minutes. Here are the subsequent durations of the budget speeches delivered by the current Finance Minister.
2019 2 hr 15 mins
2020 2 hr 42 mins
2021 1 hr 50 mins
2022 1 hr 30 mins
2023 1 hr 27 mins
2024 58 mins
In the year 2020, during Nirmala Sitharaman’s lengthiest budget speech, she advocated for essential modifications to the income tax rates. She put forth a proposal for a novel and streamlined personal income tax regime, aiming to substantially lower tax rates for individual taxpayers who opt to forego specific deductions and exemptions. The budget speech pdf document itself had 72 pages.
Now to the question, Time really matter in a Budget Speech? The present FM, while giving her budget speech in 2020, which is the longest budget speech in history, introduced necessary tax reforms and other projects. For example, the Concessional tax rate for Electricity generation companies, allowed deduction for the dividend received by the holding company from its subsidiary, Tax concession for foreign investments, Concessional tax rate for Co-operatives ..etc. The Finance Minister (FM) also introduced a new income tax regime in 2020.
Therefore, an extended duration for the budget speech signifies significant changes in existing laws or the introduction of reforms. Conversely, a shorter budget speech might suggest a lack of major reforms by the government. Reflecting on Mrs. Nirmala Sitharaman’s previous speeches, her minimum duration was 1 hour and 27 minutes. Hence, the current 58-minute timeframe could be attributed to the interim nature of the budget, with expectations of a full-budget after the upcoming elections.
Longest Speech
The present Finance Minister holds the distinction of delivering the longest budget speech in the history of budget presentations. During the 2020 Union Budget session, she set a remarkable record by addressing the parliament for an impressive 2 hours and 42 minutes.
Looking back in history, the record for the most extended budget speech in terms of word count belongs to the former Prime Minister and Finance Minister, Dr. Manmohan Singh. In 1991, the minister delivered a speech with a word count totaling 18,650 words during the budget session.
Shortest Speech
Former Finance Minister Hirubhai Mulljibhai Patel holds the record for delivering the briefest budget speech. In 1977, Mr. Patel presented the Union Budget with a speech that comprised only 800 words. And now, Mrs.Nirmala Sitharaman with a 58 minute speech.
Highlights of Tax Incentives in the Longest Budget Speech – 2020
Direct Tax
Indirect Tax
Highlights of Tax Incentives in the Shortest (Interim) Budget Speech – 2024
The FM clearly stated in her budget speech that “, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties.”
However, certain tax benefits to start-ups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on 31.03.2024.
Numerous unresolved, small direct tax demands, some dating back to 1962, create distress for honest taxpayers and impede refunds. The minister suggested waiving outstanding direct tax demands up to ₹25,000 for the period up to 2009-10 and up to ₹10,000 for 2010-11 to 2014-15, benefiting approximately one crore taxpayers.
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