Union Budget

Union Budget top facts: These events represent key milestones in the evolving history of India’s economic planning and fiscal policy. Each of these reforms had a long-lasting impact on the country’s economic landscape. Let's read in detail about key events in India Union Budget from 1947.

Pandit Jawaharlal Nehru – First PM to present the Union Budget (1958-59)
Jawaharlal Nehru, the first Prime Minister of India, was the first to present the Union Budget on 28th February 1958 for the fiscal year 1958-59. It marked a significant shift as the responsibility was taken up by the finance minister rather than the President of the country. Nehru’s budget presentation was also notable because it laid the foundation for India's planned economic growth.

Budget Published Only in English till 1955
Until 1955, the Union Budget of India was presented in English only, which made it accessible primarily to the elite and English-speaking population. The language barrier was addressed later by introducing translations and summaries in various regional languages, making the budget more inclusive.

First Union Budget of Independent India by R.K. Shanmukham Chetty (1947)
On November 26, 1947, R.K. Shanmukham Chetty, the first Finance Minister of independent India, presented the Union Budget of India for the financial year 1947-48. It was a historic moment as it was the first time an independent Indian government was setting its own budget after gaining freedom from British rule.

Morarji Desai – Record Number of Budget Presentations (10 times)
Morarji Desai, who later became the Prime Minister of India, holds the record for presenting the Union Budget the most number of times, having presented it 10 times. He was the finance minister from 1958 to 1963 and again from 1967 to 1970, significantly influencing the country's fiscal policies.

Indira Gandhi – First Woman to Present the Budget (1970)
Indira Gandhi became the first woman to present the Union Budget of India in 1970. As Prime Minister, she made history not only for being the first woman but also for her substantial influence on economic policies that contributed to shaping India’s economic framework. Nirmala Sitharaman, more recently, became the second woman to do so.

Finance and Rail Budgets Merged in 2017
In 2017, the Finance and Rail Budgets were merged after 92 years of being presented separately. The date for presenting the Union Budget was also changed from the traditional 28th February to 1st February, streamlining the budgeting process and allowing for better planning and execution of financial policies. This move aimed to integrate the railways’ financial planning with the national economic framework.

Nirmala Sitharaman – First 'Paperless Budget' (2021)
On February 1, 2021, Finance Minister Nirmala Sitharaman introduced the first-ever "Paperless Budget" in the history of India. The budget was presented digitally in a bid to reduce paper wastage and promote sustainability. It was also a significant milestone in terms of adopting digital tools in the Indian government.

GST Introduced by P. Chidambaram in 2006 Budget
On February 28, 2006, Finance Minister P. Chidambaram presented the proposal for the Goods and Services Tax (GST) in his Union Budget. The proposal aimed to simplify the Indian tax structure, eliminating the cascading effect of taxes, and creating a unified tax system for the entire country. The GST was finally implemented in 2017 after years of discussion.

Longest Budget Speech by Nirmala Sitharaman (2020)
Nirmala Sitharaman created a record in 2020 by delivering the longest-ever Union Budget speech, lasting 2 hours and 42 minutes. The speech covered extensive policy announcements, focusing on reforms in the economy, infrastructure, agriculture, and social welfare. The lengthy address reflected the comprehensive nature of the budget.

Budget Timings Changed from 5 PM to 11 AM (1999)
Prior to 1999, the Union Budget was presented at 5 PM. In that year, the timings were changed to 11 AM by the then Finance Minister, Yashwant Sinha, to bring about greater transparency and allow for the stock markets to react before closing. The change aimed to bring the presentation into the working day, making it more accessible to the public and media.

First Budget After Independence Was a Deficit Budget (1947)
The first Union Budget of independent India (presented by R.K. Shanmukham Chetty) was a deficit budget. It revealed that the new government was faced with financial challenges due to the aftermath of independence, partition, and the need for extensive rebuilding. It marked the beginning of India’s focus on economic planning.

Introduction of Planning Commission (1950)
In 1950, the Planning Commission was established, a key milestone for India's planned economic development. The Commission’s focus on five-year plans laid the foundation for systematic resource allocation, and economic budgeting was aligned with national priorities for the first time.

Nationalization of Banks (1969)
In the 1969 Budget, Finance Minister Indira Gandhi announced the nationalization of 14 major banks, a bold move that would change the banking landscape in India. This aimed at making credit more accessible to the underprivileged and facilitating economic growth in rural areas.

Economic Liberalization (1991)
The 1991 Union Budget, presented by Finance Minister Manmohan Singh, was a turning point in India's economic history. It marked the beginning of economic liberalization, with the introduction of market reforms, devaluation of the rupee, and measures to attract foreign investment. These reforms paved the way for India’s integration into the global economy.

Introduction of Direct Tax Code (2010)
The introduction of the Direct Tax Code (DTC) in 2010 aimed to simplify the taxation system in India. Although it has not yet been fully implemented, the proposal represented a shift towards making tax laws more transparent and efficient, thereby encouraging greater compliance and economic growth.

Introduction of 'Make in India' Initiative (2014)
The 2014 Budget, presented by Finance Minister Arun Jaitley, saw the launch of the 'Make in India' initiative, which aimed to boost the manufacturing sector and create job opportunities in India. The initiative focused on promoting manufacturing and foreign direct investment (FDI) in various sectors.

Demonetization and its Impact (2016)
Although not part of the Union Budget, the demonetization announcement made by Prime Minister Narendra Modi on November 8, 2016, had a major impact on the Indian economy. The government’s intent was to curb black money, counterfeit currency, and corruption, though it faced significant challenges during implementation.

Introduction of Insolvency and Bankruptcy Code (2016)
The Insolvency and Bankruptcy Code (IBC), introduced in the 2016 Budget, aimed to improve the resolution process for distressed companies. The IBC is a crucial reform to improve the ease of doing business in India by providing a structured and time-bound mechanism for debt recovery.

Corporate Tax Rate Cut (2019)
In 2019, Finance Minister Nirmala Sitharaman announced a major reduction in corporate tax rates, from 30% to 22% for domestic companies and 15% for new manufacturing companies. This move was aimed at boosting investment and making India more attractive to businesses.

Focus on Health and Infrastructure (2020-2021)
The 2020 Union Budget placed a strong emphasis on healthcare and infrastructure, especially in the wake of the COVID-19 pandemic. Nirmala Sitharaman announced an increase in healthcare spending, with a special focus on sanitation, medical infrastructure, and the launch of a National Digital Health Mission.

The highest budget ever announced in the history of India's Union Budget was in 2023-24, with FM Nirmala Sitharaman presenting a budget of INR 45 Lakh crore. This led to increased expenditure on infrastructure development in a country and starting a fast pased journey from being developing nation for 75 years to becoming a developed nation by 2050.