Indian Budget History

The Union Budget is a financial plan that shows the government's expected income and spending for the year, as stated in Article 112 of the Indian Constitution. It covers the period from April 1 to March 31 each year and is divided into two parts: (a) revenue budget and (b) capital budget.

The Union Budget for 2017-18 was special in many ways. For the first time, the budget was presented on February 1 instead of the end of February. Also, the Railway Budget was combined with the Union Budget starting in 2017.

History of the Union Budget In  India 

• India’s first budget was presented on April 7, 1860, during British rule by Finance Minister James Wilson. 
• The first Union Budget of Independent India was presented on November 26, 1947, by Finance Minister Sir R.K. Shanmugham Chetty. 
• The first post-independence budget was presented amidst riots due to India’s partition. 
• This budget was for seven and a half months, and the next budget would be presented on April 1, 1948. 
• It was also decided that both India and Pakistan would share the same currency until September 1948. 
• Sir R.K. Shanmugham Chetty resigned, and John Mathai became the new Finance Minister.
• John Mathai presented the next two budgets for 1949-50 and 1950-51. 
• The 1949-50 budget was the first one for a united India, including all princely states.

Budget: Printing, Formalities, Ceremonies, and Utmost Secrecy

The Union Budget documents are kept very secret because any leak of the official numbers could cause serious problems. These documents are so secret that even the Finance Minister isn’t allowed to keep the Blue Sheet, which contains key information used to prepare the budget. Only the Joint Secretary (Budget) is allowed to have it.

Until 1950, the budget papers were printed in the Rashtrapati Bhavan, but a data leak forced the government to move the printing to a press on Minto Road until 1980. Since then, the budget papers have been printed in a basement at the North Block, where the Finance Ministry is located.

The Halwa Ceremony is a well-known event that marks the beginning of printing the budget documents. During this ceremony, officials working on the budget documents are locked down in the basement. Even the Finance Minister is not allowed to carry a mobile phone in this area.

How Union Budgets Can Change the Course of the Future?

Union Budgets have a significant impact on a country's future. Here are five simple pointers explaining how they can shape it:

Economic Growth: The budget outlines the government's spending and investment plans. By investing in sectors like infrastructure, education, and health, it can stimulate economic growth and create jobs.

Policy Shifts: It can introduce new policies or change existing ones. For example, reforms in taxation, subsidies, or trade can influence business climate and consumer behavior, shaping the economy in the long run.

Social Welfare: The budget allocates funds for social programs like poverty alleviation, healthcare, and education. Increased investment in these areas can improve the quality of life for citizens, reduce inequality, and promote social stability.

Debt and Deficit Management: How the government handles its finances, such as managing debt and deficits, determines the country's fiscal health. A balanced budget or controlled deficit helps maintain economic stability and investor confidence.

Incentives for Innovation: The budget can allocate funds for research and development, innovation, and green technologies. This can lead to advances in sectors like science, technology, and renewable energy, driving the future growth of the economy.

Conclusion
Some of the particulars connected with the Union Budget continue to be practiced today. Briefcases have been used since the introduction of the first budget in 1860. The Union Budget outlines the government's projected revenue and expenditures for a certain fiscal year. Lately, many investors have turned to a stock market app to track the impact of the budget on market trends and financial outcomes.