India’s financial journey began shortly after gaining independence, with the presentation of its first budget on November 26, 1947. This budget, presented by the then Finance Minister R.K. Shanmukham Chetty, was modest, amounting to just ₹197.1 crore. In stark contrast, the Union Budget for the financial year 2023-24 reached a whopping ₹47.65 lakh crore, reflecting India’s phenomenal economic growth over the decades.
Budget Growth: A 24,000-Fold Increase
From ₹197.1 crore in 1947-48 to ₹47.65 lakh crore in 2023-24, the growth in India’s budget represents an astonishing 24,187.81-fold increase. This transformation highlights the nation’s progress across various dimensions, including infrastructure development, technological advancements, social welfare programs, and population growth.
Changing Budget Presentation Timings
Initially, India’s budget was presented at 5 PM, a tradition inherited from the British era to align with London’s schedule. However, in 1999, Finance Minister Yashwant Sinha shifted the timing to 11 AM, ensuring better accessibility for Indian citizens and the media.
India’s First Budget in 1947
The first budget of independent India was presented by R.K. Shanmukham Chetty on November 26, 1947. This budget focused on addressing the economic challenges posed by the partition and laying the foundation for a nascent economy.
When Prime Ministers Presented the Budget
In India’s history, there have been occasions when the Prime Minister stepped in to present the Union Budget:
- Jawaharlal Nehru:
As Prime Minister and acting Finance Minister, Nehru presented the budget for the financial year 1958-59. - Indira Gandhi:
Following Finance Minister Morarji Desai’s resignation, Indira Gandhi presented the budget for the financial year 1969-70 as Prime Minister. - Recent Example:
In 2019, due to the ill health of Finance Minister Arun Jaitley, the budget was presented by his deputy, Piyush Goyal.
Women Finance Ministers: Breaking Records
Finance Minister Nirmala Sitharaman has made history by presenting seven Union Budgets as of 2024, the highest by any woman in Indian history. Her leadership reflects the increasing role of women in shaping India’s financial policies.
Integration of the Railway Budget
Until 2017, the Railway Ministry had a separate budget. However, it was merged with the Union Budget to streamline administrative processes and eliminate redundancy.
Role of Rajya Sabha in Budget Approval
After the budget is presented in the Lok Sabha, it is also tabled in the Rajya Sabha. However, the upper house does not have the authority to modify or reject the budget. Following discussions in the Rajya Sabha, the budget is sent back to the Lok Sabha for further approval. The process culminates with a debate on grants to various ministries, followed by the guillotine procedure to pass the budget.
Budget: A Reflection of India’s Growth
India’s journey from a modest ₹197.1 crore budget in 1947 to ₹47.65 lakh crore in 2023 exemplifies its economic resilience and aspirations. This growth is not just a matter of numbers; it narrates the story of a nation striving for development, self-reliance, and prosperity.
The Union Budget serves as a blueprint for government policies and directly impacts the lives of millions of Indians. Over the decades, it has evolved to become a powerful tool for shaping India’s future and addressing the needs of its citizens.