Interesting Facts oN Union Budget of India

The Indian Budget has started even before Independence. On 18^th February, 1869, James Wilson, then Finance Member of Indian Council, Presented the First Indian Budget. He was also the Founder of The Economist. 

First Budget of Independent India

The first Budget of Independent India was presented on November 26, 1947, by the then Finance Minister (FM) RK Sanmukham Chetty. He was the first Finance Minister who is not a member of Congress.

Chetty’s first words at the Budget presentation were, “I rise to present the first Budget of a free and independent India. This occasion may well be considered an historic one and I count it a rare privilege that it has fallen to me to be the Finance Minister to present this Budget.”

Chetty in his Budget speech used the term “Interim Budget” for the first time. Consequently, all Interim Budget means a budget for a short period, usually presented just ahead of Lok Sabha elections. The Budget statement presented by Chetty covered a period of just seven and half months from August 15, 1947, to March 31, 1948.

Republic India’s First Budget

John Mathai was the First FM to present India’s First Budget of Republic of India. It was the budget which laid down the road map to the creation of the Planning Commission. He took the decision not to read out all the details. He told members that a White Paper with all details was being circulated.

Shortest Speech

In 1977, then FM Hirubhai Mulljibhai Patel presented shortest Buget speech with 800 words

Most Number of Words

In 1991, with 18,650 words then FM Manmohan Singh delivered the longest Budget Speech in terms of words.

Longest Speech in terms of time

Present FM Nirmala Sitharaman deliveered longest speech for 2 hours and 42 minutes while presenting Union Budget on 1^st February, 2020. She cut short her speech with 2 pages remaining. She broke her own record of 2 hours and 17 minutes of speech in July 2019 – which was her first speech as FM.

Most Number of Budgets

Morajai Desai (10); P Chidambaram (9), Pranab Mukherjee (8), Yashwant Sinha (8) and Manmohan Singh (6).

Time of Budget

Till 1999, the presentation of Union Budget was at 5 pm. of last day of February according to the British era practice. This timing was changed in 1999, by then FM Yashwant Sinha to 11 am.  

Change of Date of Budget

In 2017, then the FM Arun Jaitely, moved Budget from the last day of February to 1^st February; departing from British era practice of last working day of that month.

First Women to Present Budget

Indira Gandhi was the First Women to Present Budget in 1970 for the Financial Year 1970-71.

In 2019, Present FM Nirmala Sitharaman became second president to present budget. She done away with the Traditional Budget brief case and carried budget speech as well documents in ‘Bahi-Khata’ with the National Emblem in it.

Merging of Railway Budget

For 92 years Railway Budget was presented separately. In 2017, it was merged with the Union Budget.

Paperless Budget

Covid-19 made the Union Budget 2021-22 paperless budget for the first time in Independent India.

Iconic or Remarkable Budgets

Black Budget – Financial Stress  

The Budget Presented by then FM Yashwantrao B Chavan in 1973 was called ‘Black Budget’ as the Budget showed India’s Fiscal Deficit woud be Rs. 550 Crore in 1973-74. This was due to severe financial stress India was going through at that time.

Carrot & Stick Budget – Rewards & Punishment

On 28^th February, 1986, then the FM VP Singh presented the Union Budget where the first step was taken towards dismantling licence raj in India. It is famously known as ‘Carrot & Stick’ Budget as it offered rewards and Punishment. Introduction of Modified Value Added Tax (MODVAT) credit for lowering the cascading effect of tax that consumers had to pay. This budget also launched an intensive drive against black marketers, tax evaders and smugglers.

Epochal Budget – Economic Liberalisation

In 1991, then the FM Manmohan Singh’s presented a landmark Budget which ended the licence raj and thus began new economic era (i.e., economic liberalisation started).  It is famously known ‘Epochal Budget’. This was at a time where Indian economic was at a brink of collapse. Customs duty during this period was slashed from 220 to 150% and Government took many steps to promote the exports.

Dream Budget – Tax Reforms

In 1997-98 budget, then FM P Chidambaram, used the Laffer Curve principle to increase tax collection by lowering the rates. He slashed the maximum marginal income tax for individuals from 40% to 30%. He also reduced taxes to 35% for domestic companies. Other than these he made many tax reforms which includes Voluntary Disclosure of Income Scheme to recover black money. The Custom Duty also slashed to 40% and many exercise duty structure was simplified. This budget was referred as ‘Dream Budget’.

Millennium Budget – IT Revolution

The road map for the Growth of India’s Information Technology (IT) sector was laid in 2000 in then FM Yashwant Sinha’s Budget. He phased out incentives on software exporters and lowered custom duties on 21 items including computer and its accessories. That’s why it called ‘Millennium Budget’ as it paved for IT’s growth.

Rollback Budget – Withdrawn

The ‘Rollback Budget’ is popular because, in the Financial Year 2002-03, the several proposals presented by then the FM Yashwant Sinha in his budget was withdrawn or rolled back.

Once-in-a-Century Budget – Robust Tax Collections

The present FM Nirmala Sitharam on 1^st February, 2021 presented what she called the ‘Once-in-a-Century Budget’. The budget looked to revive the Asia’s third-largest economy by investing in infrastructure and healthcare. This was relied on an aggressive privatisation strategy and robust tax collections.

The Following are the List of the Finance Ministers of India since Independence