India’s Historical Budgets: The Budgets That Changed the Nation’s Economic Landscape

New Delhi: Since India gained independence in 1947, presenting the annual budget has been a key tradition. This year, the budget will be presented on 1st February, which falls on a Sunday. Union Finance Minister Nirmala Sitharaman will unveil it in Parliament at 11 AM. Over the years, certain budgets have stood out for their transformative impact on India’s economy. Let’s take a look at some of these historic budgets.

Budget 1947
India’s first budget after independence was presented by Finance Minister R.K. Shanmukham Chetty on 26th November 1947, covering the period from 15th August 1947 to 31st March 1948. At that time, India faced the huge challenge of rehabilitating refugees from East and West Pakistan. Despite limited resources, the budget provided measures to address this urgent issue.

Budget 1951
Presented by Finance Minister John Mathai on 28th February 1950, this was the first budget of democratic India. It paved the way for the establishment of the Planning Commission, which planned resource allocation and development priorities for the country. This budget also introduced the first detailed budget document and imposed a “super tax” of 8.5% on incomes above ₹1.21 lakh per year.

Budget 1957
During Jawaharlal Nehru’s tenure, Finance Minister T.T. Krishnamachari presented the budget on 15th May 1957. It made import licensing mandatory, reallocated funds from non-core projects, introduced a wealth tax, and increased excise duties up to 400%.

Budget 1968
Presented by Finance Minister Morarji Desai on 29th February 1968, this was called India’s first “people-sensitive budget.” It eliminated the mandatory stamping and assessment of goods at factory gates and introduced self-assessment, boosting manufacturing efficiency in the country.

Budget 1973
Finance Minister Yashwantrao B. Chavan presented this budget on 28th February 1973. It allocated ₹56 crore for the nationalization of general insurance companies, the Indian Copper Corporation, and coal mines. Due to coal mine nationalization, the budget for 1973-74 projected a deficit of ₹550 crore—the largest structural reform in the mining sector at that time.

Budget 1991
One of the most revolutionary budgets in Indian history, it marked the beginning of liberalization, privatization, and globalization (LPG reforms). Presented by Finance Minister Manmohan Singh on 24th July 1991, India was facing a severe balance-of-payments crisis. The budget ended the “license raj,” opened major sectors to domestic and foreign investment, and implemented major import-export reforms.

Budget 2005
Known as the “common man’s budget,” Finance Minister P. Chidambaram reduced corporate tax and customs duties. It also announced key social measures, including MNREGA and the Right to Information (RTI) Act, which helped curb rural migration by providing employment opportunities locally.

Budget 2017
Presented by Finance Minister Arun Jaitley, this budget introduced the Goods and Services Tax (GST)—a landmark reform in India’s indirect tax system. GST replaced multiple state and central taxes with a single tax network, benefiting businesses and consumers alike.

Budget 2020
Finance Minister Nirmala Sitharaman delivered the longest budget speech in history. This budget introduced the new personal income tax regime, simplifying the tax structure for millions of taxpayers.

These budgets not only shaped India’s economic policies but also transformed the nation’s financial landscape, setting the course for growth, reform, and development.