Finance Minister Nirmala Sitharaman is set to present the Union Budget in Parliament on February 1. This will be her second full Budget after the BJP-led NDA returned to power for a third term in 2024.
Over the decades, a few Budgets have stood out for their far-reaching impact on the economy and governance.
Here's a look at five such Union Budgets:
Introduction of wealth tax in the 1957-58 Budget
The 1957-58 Budget, presented by Finance Minister TT Krishnamachari, introduced a landmark reform - the wealth tax. For the first time, individuals were taxed on the value of their personal assets. The shift marked a new approach to taxation, aimed at reducing economic inequality by taxing the wealthy. The wealth tax remained in place for decades before it was scrapped in 2015.
The 'Black Budget' of 1973-74
The 1973-74 Budget, presented by Yashwantrao B Chavan, is remembered as the "Black Budget" for its staggering fiscal deficit of Rs 550 crore. India was grappling with serious economic challenges, including rising oil prices and food shortages. The Budget laid bare the country's economic difficulties, and it was a precursor to the political and economic turbulence that followed, including the declaration of the Emergency in 1975.
Economic liberalisation in 1991-92
One of the most landmark budgets in the history of India, the 1991-92 Union Budget, was presented by Manmohan Singh. Faced with a severe balance-of-payments crisis, the government introduced economic reforms, liberalising the Indian economy. The Budget reduced customs duties, slashing them from 220 per cent to 150 per cent, and took significant steps to ease imports and exports. Manmohan Singh also introduced policies to reduce government intervention in business, paving the way for foreign investment and greater economic freedom.
The 'Dream Budget' of 1997-98
Due to its tax reforms, the 1997 Budget, presented by P Chidambaram, came to be known as the "Dream Budget." P Chidambaram lowered the highest personal income tax rate from 40 per cent to 30 per cent, providing much-needed relief to taxpayers. Corporate tax rates were also reduced, and surcharges were eliminated. The Budget aimed to simplify the tax structure and boost economic activity by leaving more money in the hands of citizens.
End of the separate Railway Budget
In 2017-18, Arun Jaitley's Union Budget brought about a change by merging the Railway Budget with the Union Budget, putting an end to a 92-year-old tradition. Since then, presenting a unified budget has been standard practice.
