Union Budget 2024: 5 Most Iconic Budgets of India

Finance Minister Nirmala Sitharaman is set to present the Union Budget for the fiscal year 2024 in Parliament on July ...

Finance Minister Nirmala Sitharaman is set to present the Union Budget for the fiscal year 2024 in Parliament on July 23 or 24. This budget will outline all the planned incomes and expenditures for the year ahead. Since 1947, there have been a total of 73 annual budgets, 14 interim budgets and four special budgets, or mini-budgets. Some are known as Dream Budget, some are Black Budget.

So let’s talk about 5 most iconic budgets of India. The first and the most iconic one is India’s first budget in 1947. RK Shanmukham Chetty presented the first budget of Independent India. This budget covered a short period of seven and a half months, from August 15, 1947, to March 31, 1948. It was notable because it was decided that both India and Pakistan would use the same currency until September 1948. The budget focused on addressing the economic challenges that arose due to India’s independence and partition.

The second one is Black Budget presented in 1973. Yashwantrao B. Chavan presented the 1973-74 Budget under Indira Gandhi’s government. It was called the ‘Black Budget’ because of the high fiscal deficit, which was Rs 550 crore, a very large amount at that time. This budget came during a period of significant economic problems.

The third one is Carrot and Stick Budget The Union Budget of 1986, presented by Finance Minister V. P. Singh, is known as the ‘Carrot and Stick Budget’. This budget combined incentives to boost economic growth with strict measures to tackle tax evasion and black money. It marked the first step towards ending the licence raj in India. The government introduced a new tax called the Modified Value Added Tax (MODVAT) to reduce the cascading effect of taxes, benefiting both manufacturers and consumers. Additionally, it included tough measures against tax evaders, smugglers, and black marketers.

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Budget Presented by Manmohan Singh in 1991 is known as the ‘Epochal Budget’ as it kickstarted the era of economic liberalisation in the country. It is known for its economic liberalization reforms and marked the shift from a closed economy to an open market. Major reforms included reducing import duties, deregulating industries, and devaluing the Indian rupee to boost exports. The budget was presented when India was on the verge of an economic collapse, and it significantly reduced customs duty from 220% to 150% and took steps to promote exports.

The fifth and probaby the best one, the dream budget presented by P Chidambaram in 1997. It introduced several economic reforms, including lowering income tax rates, removing corporate tax surcharges, and reducing corporate tax rates. The maximum marginal income tax rate for individuals was cut from 40% to 30%, and for domestic companies to 35%. The budget also introduced the Voluntary Disclosure of Income Scheme (VDIS) to recover black money. Additionally, it reduced customs duty to 40% and simplified the excise duty structure. These measures marked a significant shift towards economic liberalization and an open market.

So these are the 5 most iconic budgets, but one budget which I will like to mention here is Railway merger in 2017, The Union Budget of 2017, presented by Finance Minister Arun Jaitley, was notable for several key reasons. It was the first budget to be presented on February 1 instead of the traditional date of the last working day of February. Additionally, the 2017 budget merged the Railway Budget with the General Budget and was the first budget post-demonetisation, which aimed to curb black money.