Iconic Union Budgets in India's history | Fusion - WeRIndia

As the Prime Minister Narendra Modi-led government gears up to present the first full Union Budget of their third term after the 18th Lok Sabha polls in 2024, it’s a moment to reflect on the historic budgets that have shaped India’s economic landscape.

The upcoming budget will lay the roadmap for the next five years, marking a significant milestone.

Finance Minister Nirmala Sitharaman presented the last budget before the elections. It was a vote on account of the General Elections scheduled from April to May.

The first budget was presented to the British Crown on April 7, 1860, before independence. The first budget after the independence was presented on November 26, 1947, by then Finance Minister R K Shanmukham Chetty.

Here is a list of some iconic budgets in India’s history:

The Black Budget was presented by Yashwantrao B Chavan during Indira Gandhi’s tenure during 1973-74. The budget was termed the Black Budget due to a high fiscal deficit of ₹550 crore, reflecting the nation’s financial hardships at the time.

Finance Minister VP Singh’s budget in 1986 was dubbed the “Carrot & Stick” Budget. It marked a significant move towards ending the licence raj, introducing MODVAT to reduce the tax burden on consumers. At the same time, it also focused on intensifying the fight against smugglers and tax evaders.

Presented by Manmohan Singh in 1991, the Epochal Budget heralded economic reforms that ended the licence raj and ushered in liberalization. It came when India was nearing financial collapse and included reducing customs duty from 220% to 150%.

Former Finance Minister P Chidambaram’s 1998 budget is known for significant tax cuts. The maximum marginal income tax rate was reduced from 40% to 30%, and for domestic companies to 35%. It also introduced a scheme to recover black money and lowered customs duty to 40%.

Yashwant Sinha’s Millennium Budget in 2000 focused on the growth of the Information Technology (IT) industry, phasing out incentives for software exporters. In addition, it also reduced customs duty on items like computers and accessories.

Rollback Budget was presented by Yashwant Sinha for the financial year 2002-03. This budget earned its name for the rollback of several proposals and policies under the Atal Bihari Vajpayee government.

Finance Minister Nirmala Sitharaman’s 2021 budget is called the once-in-a-century budget due to its emphasis on privatization, robust tax collections, and significant investment in infrastructure and healthcare.

As we await the upcoming budget, these historic budgets remind us of the pivotal role they play in shaping the nation’s economic future.

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Image Reference: https://commons.wikimedia.org/wiki/File:Nirmala_Sitharaman_FM.jpg