Some Budgets have the potential to change the country forever and leave behind long-term benefits. As we wait for Finance Minister Nirmala Sitharaman to present the Union Budget 2023 on 1 February, let’s take a look at some of these revolutionary Budgets.
1.First Budget of Independent India
The historic first budget of independent India was presented on 26 November, 1947 just 3 months after we got independence. It was presented by RK Shanmukham Chetty, the first Finance Minister of India.
To present a Budget right after gaining freedom was an audacious and applause-worthy move! In the 75 years between the first budget in 1947 and the latest in 2022, the size of India’s Union Budget has ballooned nearly 20,000 times. It has jumped from ₹197 crore in 1947 to nearly ₹40 lakh crore in 2022. This shows how far the country has truly come.
2.The ‘People-Centric’ Budget
Morarji Desai’s ‘People-centric Budget’ in 1968 ended the need for excise department officials to assess and stamp each good leaving the factory gate. It saved a lot of time as the system of self-assessment was introduced for all big and small manufacturers. It boosted manufacturing and is practiced even today.
Fun fact: Mr. Morarji Desai holds the record for presenting the most number of Union Budgets in India. A total of 10!
3. The 1991 Budget
The 1991 Budget by Dr. Manmohan Singh was nothing short of ICONIC. It not only liberated India from the License Raj but also introduced the term Liberalisation.This reform-centric Budget opened the gates for foreign companies to invest in India, promoted exports and brought down import licensing.
This brought foreign technology to India and made Indian manufacturers competitive. It helped India avert a major economic crisis triggered by currency overvaluation and the current account deficit. It is the reason why today we are one of the fastest-growing economies.
Fun fact: The National Stock Exchange or NSE was established via a 1991 Budget provision.
4. The ‘Dream Budget’
The 1997 Budget presented by P. Chidambaram was considered the 'Dream Budget’. It lowered the personal Income tax rate from 40% to 30% and also reduced corporate tax rate. It even introduced the Voluntary Disclosure of Income Scheme.
Not only was this the original plan of unearthing black money way before demonetisation came into play, it also made India FII-friendly.
5. The Digital Payments Budget
(Or the Budget which taught India to swipe and pay). The law to link one’s PAN card with their Aadhaar card was introduced in Budget 2017 by Arun Jaitley. A merchant version of Aadhaar Enabled Payment System called Aadhaar Pay was also launched to promote digital payments.
The Govt also announced incentives to promote the BHIM payment app. All this helped create a digital payment ecosystem without which life today is unimaginable.
So the next time someone tells you Budgets are all about taxes, you can show them how it’s not, right?
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