5 Landmark Budgets That Shaped India's Economy: A History

The Union Budget of India has a rich history, dating back to 1947 when RK Shanmukham Chetty presented the first budget after independence.

5 Landmark Budgets That Shaped India's Economy: A History

The Union Budget has a rich history, dating back to 1947.

Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23 at 11 am in the Lok Sabha. The budget session will commence on July 22 and continue until August 12, 2024.

The Union Budget has a rich history, dating back to 1947 when RK Shanmukham Chetty presented the first budget of independent India. Since then, the country has seen several landmark budgets that have transformed the country's economy.

5 Landmark Budgets of India

1957-58

TT Krishnamachari's Budget for 1957-58 introduced groundbreaking tax reforms, including wealth tax. This tax was levied on the total value of personal assets, marking a significant shift in India's tax policy. The wealth tax remained a part of the Indian tax system in various forms until it was abolished in 2015.

1991-92

The Union Budget of 1991 presented by Manmohan Singh aimed to address the severe economic crisis facing the country. Mr Singh, an economist, leveraged his expertise to reform India's economy. He drew upon his experience as Chairman of the Planning Commission and Chief Economic Advisor to revamp the import-export policy.

Mr Singh's budget slashed customs duty from 220 per cent to 150 per cent, making Indian trade more globally competitive. He, under Prime Minister PV Narasimha Rao's government, also introduced groundbreaking liberal policies, reducing government control and promoting economic freedom.

This landmark budget had a profound impact, improved India's reputation worldwide and ended the "Licence Raj". This budget also attracted foreign investment, boosted economic confidence, and paved the way for India to become a major economic power.

1997-98

P Chidambaram, who worked under Manmohan Singh in the Narasimha Rao cabinet, showcased his economic and financial expertise in his Budget presentation of 1997 when he was the Finance Minister.

The Budget, labelled the "Dream Budget" by experts, was significant for reducing personal income tax and corporate tax. P Chidambaram introduced significant cuts in both personal and corporate taxes, reducing the highest personal income tax rate from 40 per cent to 30 per cent. This move, grouped with the elimination of surcharges and reduced royalty rates, provided significant relief to taxpayers and is considered as one of India's finest Budgets.

2000-01

Yashwant Sinha delivered a landmark Budget under Atal Bihari Vajpayee's regime. Sinha's Budget revolutionised the IT sector by lowering customs duty on 21 items, including computers. This led to a boom in the industry, making India a hub for IT growth.

2016-17

Arun Jaitley's Budget in 2017-18 marked a historic shift by merging the Union Budget and Railway Budget presentations, ending a longstanding tradition of 92 years. As Finance Minister, Arun Jaitley streamlined the process, presenting a unified budget, which has since become the standard practice.

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