Top 5 Union Budgets That Created a Lasting Impact

30 January, 2024

Every year, on 1st February, the Finance Minister presents the Union Budget to the parliament. As per Article 112 of the Constitution of India, a budget must be presented to the parliament before the upcoming financial year which starts from 1st April and ends on 31st March of the next year.

The Union Budget is the Annual Financial Statement (AFS) that comprises estimated expenditures and receipts of the Indian Government for that year. The Union Budget is classified into Capital Budget and Revenue Budget. The Capital Budget includes the government’s capital receipts and payments such as loans from foreign governments or the Reserve Bank of India. Revenue Budget, on the other hand, includes the government’s revenue receipts and payments such as those incurred on services offered to citizens. The Union Budget also talks about how the government will be allocating resources and implementing policies to boost the economy.

Since the long-awaited Budget season is upon us, we look back at the several significant budgets in the history of India. Here are the top five budgets you should know about:

1. 1947 – The First Union Budget of Independent India
   
   November 26, 1947 – The first union budget of the nation was presented by he Finance Minister R. K. Shanmukham Chetty, covered seven and a half months from independence to March 31, 1948. Even though a budget was passed earlier for the same period, the partition meant that it could no longer be implemented.
   
   

2. 1987 – Introduction of MAT
   
   The 1987 budget is commonly known as the ‘The Dream Budget.’ It was presented by Rajiv Gandhi and emphasised improving the rigid and half-baked taxation structure. It introduced MAT (Minimum Alternate Tax), then Minimum Corporate Tax, to prevent companies from deferring their tax liabilities.
   
   

3. 1991 – The Epochal Budget
   
   ‘The Epochal Budget,’ as we commonly know the 1991 budget, was the beginning of the economic liberalisation of the Indian economy. Presented by Finance Minister Manmohan Singh, it slashed customs duty and excise rates. It emphasised additional measures to overhaul the imports and exports of the country.
   
   

4. 2003 – The Infrastructure Push Budget
   
   The 2003 Union Budget presented by Finance Minister Jaswant Singh aimed to push India’s infrastructure to a new level. It allocated ₹75,000 crore for the Golden Quadrilateral. It also showcased the aim to modernise New Delhi and Mumbai (then ‘Bombay’) airports and set up the Hyderabad and Bangalore airports.
   
   

5. 2018 – Impetus on Farmers’ Income Budget
   
   The Union Budget, presented by FM Arun Jaitley, had its focus clear. It wanted to improve rural India. So, it proposed steps to double the farmers’ income by 2022. It also allocated ₹14.34 lakh crore towards creating livelihoods and infrastructure and multiple other measures to boost rural India.
   
   

These were some of the most impactful budgets.

Let's observe the impact of this year's budget as the economy is in need of a much-needed boost.

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