What Is A Government Budget?
A government budget is a report prepared by the government and additionally other political entities introducing its expected duty incomes (Inheritance charge, annual expense, enterprise charge, import burdens) and proposed spending/expenditure (Healthcare, Education, Defense, Roads, State Benefit) for the approaching financial year. In most parliamentary frameworks, the budget is introduced to the governing body and frequently required approval from the legislature. Through this budget plan, the government executes monetary arrangements and understands its program needs. When the budget is supported, the utilization of assets from individual parts is in the possession of the government, ministries, and different organizations. Incomes of the state budget comprise mostly of charges, customs obligations, expenses, and different incomes. The state budget uses to cover the exercises of the state, which are either given by regulation or the constitution. The budget in itself doesn’t appropriate funds for government programs, thus need for extra legislative measures.
- Credible budgets, which are characterized as legal fixed term (for the most part one year) budgets auditable by parliament, were first presented in the Netherlands in 1572, England in 1689, France in 1830, Denmark, Piedmont and Prussia in 1848, Portugal in 1851, Sweden in 1866, Austria in 1867, and Spain in 1876. Credible budgets had two primary impacts:
- They made parliament bound to support new tax collection, and
- They improved wartime military spending and expanded the opportunity of victory in war.
The act of introducing budgets and financial policies to parliament was started by Sir Robert Walpole in his situation as Chancellor of the Exchequer, trying to reestablish the certainty of the general population after the bedlam released by the breakdown of the South Sea Bubble in 1720. Thirteen years after the fact, Walpole declared his fiscal plans to acquire an extract charge on the utilization of an assortment of labor and products, like wine and tobacco, and to decrease the tax assessment trouble on the landed nobility. This incited a flood of public shock, including savage criticisms from the Whig peer William Pulteney, who composed a handout entitled the budget opened, or a response to a leaflet. Concerning the obligations on wine and tobacco – whenever the word ‘first budget’ was utilized regarding the government’s financial arrangements. The proposed Excise Bill was ultimately rescinded.
- The organization of the annual account of the budget advanced into work on during the primary portion of the eighteenth century and had become grounded by the 1760s; George Grenville presented the Stamp Act in his 1764 budget discourse to the House of Commons of Great Britain government programs, henceforth need for extra administrative measures.
Why Do We Need A Budget?
Some of the most significant objectives of the government budget are as per the following:-
- Redistribution of Resources
- Diminishing imbalances in income and wealth
- Monetary Stability
- Management of Public Enterprises
- Economic Growth
- Reducing regional inconsistencies
1. Redistribution Of Resources:-
- Through the budgetary policy, Government means to redistribute assets as per the financial (benefit expansion) and social (public government assistance) needs of the country. Government can impact the allocation of resources through:-
Tax concessions or appropriations: To empower ventures, the government can give tax concession, sponsorship, and so on to the makers. For instance, Government puts the creation of destructive utilization merchandise down (like alcohol, cigarettes, and so forth) through weighty duties and empowers the utilization of ‘Khaki items’ by giving appropriations.
Directly producing goods and services: If the private sector does not take an interest, the government can directly undertake the production.
2. Diminishing Imbalances In Income And Wealth:-
- Economic disparity is an innate piece of each financial framework. Government intends to decrease such imbalances of income and wealth, through its budgetary policy. Government intends to impact the appropriation of income by forcing taxes on the rich and spending more on the government assistance of poor people. It will diminish income of the rich and increase expectation of living of poor people, subsequently lessening disparities in the appropriation of income.
3. Monetary Stability:-
- The government budget is utilized to forestall business fluctuations of expansion or flattening to accomplish the goal of economic steadiness. The government intends to control the various periods of business fluctuations through its budgetary policy. Strategies of the surplus budget during expansion and deficit budget during collapse assist with keeping up with the stability of costs in the economy.
4. Management Of Public Enterprises:-
- There are enormous quantities of public sector enterprises (especially natural monopolies), which are laid out and overseen for the social welfare of the general population. The budget is ready with the goal of making different arrangements for overseeing such endeavors and giving that monetary assistance.
5. Economic Growth:-
- The development of a nation relies upon the rate of saving and investment. For this reason, budgetary policy means to prepare adequate assets for interest in the public sector. Hence, the government makes different arrangements in the budget to raise the general rate of reserve funds and interests in the economy.
6. Reducing Regional Inconsistencies:-
- The government budget intends to lessen regional disparities through its tax assessment and consumption strategy for empowering the setting up of creation units monetarily in reverse districts.
How Government Prepares A Union Budget
The budget is ready by the Finance Minister with the help of a number of counsels and administrators. The Finance Minister looks for the perspective on the industry leaders and market analysts preceding planning. Different accounting and money-related associations send in their perspectives and ideas . The budgeting exercise in India remains mostly the area of administrators to take part and impact the results.
Normally, the budget-making process begins in the second last quarter of the financial year. The budget has four phases’ viz.,
(1) Assessments of expenditure and incomes,
(2) the First gauge of deficit,
(3) Restricting of deficit and
(4) Presentation and approval of the budget.
1. Assessments Of Expenditure And Incomes:
The process starts with different ministries providing initial estimates of plan and non-plan consumption. The ministries examine the arrangement consumption with the Planning Commission. The Planning commission designates resources for proceeding with plan programs and settles on the new projects that can be attempted based on a provisional gauge or assets accessible, that are given to it by the money service. The financial counselors of the ministries set up the non-plan uses. The consumption secretary unites them and after an escalated conversation with monetary counselors, budget gauges are set for the resulting financial year.
Most of the non-plan use is represented by interest installments, endowments (principally on food and composts), and compensation installments to representatives.
Aside from assessing the consumption, an appraisal of expected incomes prone to stream into the government depository needs to do as an alongside exercise. Income receipts are of two sorts – capital and current receipts.
Capital receipts incorporate reimbursement of advances given by the government, receipts from the divestment of public-area value, and borrowings-both homegrown and outside. Current receipts incorporate primarily, charge incomes, receipts via profits from public-area units, and interest installments on credits given out by the local government.
The adds up to be gotten via charge incomes is assessed based on existing paces of tax collection and thinking about the logical development and expansion rate over the following financial year.
On the capital receipts side, designated sums to be acknowledged through divestment of public sector value and sums to be acknowledged via reimbursements of advances are made. Every one of the appraisals is given to the revenue secretary.
2. First Gauge Of Deficit:-
- After the assessments of income and consumption are made, they are matched together. This gives the principal gauge of anticipated that shortage in income should meet projected consumption. The government then, at that point, in counsel with the boss monetary consultant, settles on the ideal degree of borrowings to meet this shortfall. The figure of outer borrowings is known as a significant part of the outside acquiring by the government comprises of two-sided and multilateral help which is known when budgetary plan practices are embraced. The degree of domestic borrowings relies incompletely upon the ideal degree of the monetary shortfall that the government focuses on itself. A piece of the income hole is left unfilled to be met through the issue of impromptu depository bills.
3. Restricting The Deficit:-
- After the objectives for the fiscal deficit and the general budget deficit is chosen, any leftover setback is filled through an update in charge rates if practical, remembering the fiscal incentive structure the government wishes to set up to animate the development in various areas. Following the underlying plans, assuming that any progressions should be made changes to use; normally the arrangement use must be altered. The non-arrangement use includes interest installments, appropriations, and regulatory consumption. Because of the political responsive qualities associated with decreasing sponsorships, non-plan consumption of the government is resolute with regards to transforming it and it is the policy uses that get the hatchet after pre-emption has as of now been made for non-arrangement use.
4. The Budget:-
The introduction of the Budget for the resulting financial year (starting April 1) is typically done on the last working day of February. The Indian constitution has made the Parliament incomparable in financial issues. The Union government, under Article 112 of the constitution, is expected to lay a yearly fiscal summary of assessed receipts and use before the two Houses of Parliament.
It can require burdens or dispense subsidies just on endorsement in the two places of Parliament. Notwithstanding, the proposition for tax assessment or consumption must be started inside the Council of Ministers- – explicitly by the Minister of Finance. The Finance Minister presents before the Parliament, a budget report itemizing the assessed receipts and consumptions of the focal government for the impending monetary year and an audit of the current financial year.
Under Article 114 of the Constitution, the government can pull out cash from the Consolidated Fund of India just on endorsement from Parliament thus it needs to get the Appropriation Bills supported by Parliament. This approves the leader to burn through cash. Article 265 of the Constitution forbids the government from gathering any assessments without the power of regulation. Thus, the government concocts the Finance Bill. The Bill might require new duties, alter the current expense construction or proceed with the current assessment structure past the period endorsed by Parliament before.
The bills are sent to Rajya Sabha for input. The Lok Sabha, nonetheless, isn’t committed to acknowledging the remarks and the Rajya Sabha can’t postpone the entry of these bills. The bills become regulation when endorsed by the President. The Lok Sabha can’t build the solicitation for reserves presented by the executive, nor would it be able to approve new expenditures.
The recommendations in the budget come into power on April 1. Between the show and successful date, there is a hole of multi-month during which the Lok Sabha can survey and alter the government’s budget proposal. This doesn’t occur more often than not and the Parliamentary investigation of recommendations and the section of the budget get finished in May, well after the initiation of the new financial year. Since the proposed budget must be successful from April 1, the government normally looks for a break endorsement to meet eminent uses that must be brought about forthcoming the endorsement of the spending plan.
This is known as the vote-on-account and the sanctions given by the section of the vote-on-account get consequently superseded once the Budget is endorsed by Parliament.
Budget 2022-23
The Finance & Corporate Minister Smt. Nirmala Sithraman in the Union Budget 2022 speech informed that the Productivity Linked Incentive (PLI) in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received an excellent response, with the potential to create 60 lakh new jobs, and an additional production of Rs 30 lakh crore during the next 5 years.
“We are marking Azadi ka Amrit Mahotsav and have entered into Amrit Kaal, the 25-year-long leadup to India@100,” Sitharaman said.
The budget 2022 shows that India’s current economic growth is estimated at 9.2% to be the highest among all large economies. Under the productivity linked incentive scheme 60 lakh new jobs are to be created in 14 sectors.
Entering Amrit Kaal, the 25 year-long lead up to India @100, the budget provides an impetus for growth along with four priorities:
- PM GatiShakti
- Inclusive Development
- Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action.
- Financing of investments
Budget 2022 Key Highlights:-
- PM GatiShakti: PM GatiShkati National Master Plan
- The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.
- The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity, and logistics efficiency.
- The projects pertaining to these 7 engines in the National Infrastructure Pipeline will be aligned with the PM GatiShakti framework.
1. Road Transport
National Highways Network to be expanded by 25000 Km in 2022-23.
Rs 20000 Crore to be mobilized for National Highways Network expansion.
2. Multimodal Logistics Parks
- Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four locations.
3. Railways
One Station One Product concept to help local businesses & supply chains.
2000 Km of the railway network to be brought under Kavach, the indigenous world-class technology, and capacity augmentation in 2022-23.
400 new generation Vande Bharat Trains to be manufactured during the next three years.
100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during the next three years.
4. Parvatmala
National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
Contracts to be awarded in 2022-23 for 8 ropeway projects of 60 Km length.
5. Agriculture
2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy.
Chemical-free Natural farming to be promoted throughout the county. The initial focus is on farmer’s lands in 5 Km wide corridors along river Ganga.
NABARD to facilitate fund with blended capital to finance startups for agriculture & rural enterprise.
‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and nutrients.
Ken Betwa project
1400 crore outlay for implementation of the Ken – Betwa link project.
9.08 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa link project.
6. MSME
Udyam, e-shram, NCS, and ASEEM portals to be interlinked.
130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS).
ECLGS to be extended up to March 2023.
Guarantee cover under ECLGS to be expanded by Rs 50000 Crore to a total cover of Rs 5 Lakh Crore.
Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
Raising and Accelerating MSME performance (RAMP) program with an outlay of Rs 6000 Crore to be rolled out.
7. Skill Development
Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through online training.
Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).
8. Education
‘One class-One TV channel’ program of PM eVIDYA to be expanded to 200 TV channels.
Virtual labs and skilling e-labs to be set up to promote critical thinking skills and a simulated learning environment.
High-quality e-content will be developed for delivery through Digital Teachers.
Digital University for world-class quality universal education with a personalized learning experience to be established.
9. Health
An open platform for National Digital Health Ecosystem to be rolled out.
‘National Tele Mental Health Programme’ for quality mental health counselling and care services to be launched.
A network of 23 tele-mental health centres of excellence will be set up, with NIMHANS being the nodal centre and the International Institute of Information Technology-Bangalore (IIITB) providing technical support.
10. Saksham Anganwadi
Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0.
Two lakh anganwadis to be upgraded to Saksham Anganwadis.
11. Har Ghar, Nal Se Jal
- 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.
12. Housing for All
- 48,000 crores allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.
13. Prime Minister’s Development Initiative for North-East Region (PM-DevINE)
New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
An initial allocation of Rs. 1,500 crore made to enable livelihood activities for youth and women under the scheme.
14. Vibrant Villages Programme
- Vibrant Villages Programme for the development of Border villages with a sparse population, limited connectivity, and infrastructure on the northern border.
15. Banking
100 percent of 1.5 lakh post offices to come on the core banking system.
Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts.
16. Urban Planning
Modernization of building bye-laws, Town Planning Schemes (TPS), and Transit-Oriented Development (TOD) will be implemented.
Battery swapping policy to be brought out for setting up charging stations at scale in urban areas.
17. Atma Nirbharta In Defence
68% of capital procurement budget earmarked for the domestic industry in 2022-23, up from 58% in 2021-22.
Defence R&D to be opened up for industry, startups, and academia with 25% of defence R&D budget earmarked.
Independent nodal umbrella body to be set up for meeting testing and certification requirements.
18. Energy Transition and Climate Action
Additional allocation of Rs. 19,500 crore for Production Linked Incentive for the manufacture of high-efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.
Five to seven percent biomass pellets to be co-fired in thermal power plants:
CO2 savings of 38 MMT annually,
Extra income to farmers and job opportunities to locals,
Help avoid stubble burning in agriculture fields.
Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry
Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.
19. Mobilizing Resources
Data Centers and Energy Storage Systems to be given infrastructure status.
Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystems. Measures are to be taken to help scale up this investment.
Blended funds to be promoted for sunrise sectors.
Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure.
20. Fiscal Management
Budget Estimates 2021-22: Rs. 34.83 lakh crore
Revised Estimates 2021-22: Rs. 37.70 lakh crore
Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore
Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore
Fiscal deficit in the current year: 6.9% of GDP (against 6.8% in Budget Estimates)
Fiscal deficit in 2022-23 estimated at 6.4% of GDP.
21. Parity in National Pension Scheme Contribution
Tax deduction limit increased from 10 percent to 14 percent on employer’s contribution to the NPS account of State Government employees.
Brings them at par with central government employees.
Would help in enhancing social security benefits.
22. Incentives For Start-ups
Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail tax benefit.
Previously the period of incorporation was valid up to 31.03.2022.
23. Scheme For Taxation Of Virtual Digital Assets
The specific tax regime for virtual digital assets was introduced.
Any income from the transfer of any virtual digital asset is to be taxed at the rate of 30 percent.
No deduction in respect of any expenditure or allowance to be allowed while computing such income except the cost of acquisition.
Loss from the transfer of virtual digital assets cannot be set off against any other income.
To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital assets at the rate of 1 percent of such consideration above a monetary threshold.
Gift of virtual digital assets also to be taxed in the hands of the recipient.
24. Litigation Management
In cases where a question of law is identical to the one pending in the High Court or Supreme Court, the filing of appeal by the department shall be deferred till such question of law is decided by the court.
To greatly help in reducing repeated litigation between taxpayers and the department.
Sector-Specific Proposals In Budget 2022
1. Electronics
Customs duty rates to be calibrated to provide a graded rate structure – to facilitate domestic manufacturing of wearable devices, wearable devices, and electronic smart meters.
Duty concessions to parts of the transformer of mobile phone chargers and camera lens of mobile camera module and certain other items – To enable domestic manufacturing of high growth electronic items.
2. Gems And Jewellery
Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent; Nil customs duty to simply sawn diamond – To give a boost to the Gems and Jewellery sector
A simplified regulatory framework to be implemented by June this year – To facilitate the export of jewellery through e-commerce.
Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import – To disincentives import of undervalued imitation jewellery.
3. Chemicals
- Customs duty on certain critical chemicals namely methanol, acetic acid, and heavy feedstock are for petroleum refining being reduced; Duty is being raised on sodium cyanide for which adequate domestic capacity exists – This will help in enhancing domestic value addition.
4. MSME
Customs duty on umbrellas being raised to 20 percent. Exemption to parts of umbrellas being withdrawn.
Exemption being rationalized on implements and tools for agri-sector which are manufactured in India
Customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers
Certain Antidumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked – to tackle prevailing high prices of metal in the larger public interest.
5. Exports
To incentivize exports, exemptions are being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes.
Duty being reduced on certain inputs required for shrimp aquaculture – to promote its exports.
Winning And Losing Sector After The Budget 2022
Winning Sectors :-
1. Transport, Infrastructure
- Plans for investments on distant roads, mass travel in urban areas, and 400 new “Vande Bharat” trains in three years will help key foundation players including Larson and Toubro Ltd., GMR Infrastructure Ltd., KNR Constructions Ltd., IRB Infra Ltd., Container Corporation of India Ltd., Allcargo Logistics Ltd. also Indian Railway Catering and Tourism Corp.
2. Metal
- The government’s 600 billion rupee allotment for funneled water to 38 million homes and spending on coordinated operations will help India’s metals makers, including Vedanta Ltd., Tata Steel Ltd. what’s more JSW Steel Ltd.Jindal Stainless Ltd. Pipemakers Jain Irrigation Systems Ltd., KSB Ltd., Kirloskar Brothers Ltd. could likewise benefit.
3. Solar
- Production connected incentives worth 195 billion rupees for solar-based modules to help nearby assembling will turn the attention on development at driving board makers, including Tata Power Ltd., Suzlon Energy Ltd., Adani Enterprises Ltd. also Reliance Industries Ltd.
4. Cement, Construction
- The government’s arrangement to assemble more homes for low-pay workers across urban communities will mean more plans for concrete and development majors UltraTech Cement Ltd., Ambuja Cements Ltd, Birla Corp. also ACC Ltd..
5. Digital Finance
- Digital finance administrations suppliers in India are set to acquire after Tuesday’s budget centered around extending such administrations. These incorporate PB Fintech Ltd., the parent of PolicyBazaar, recently recorded Paytm’s proprietor One 97 Communications Ltd., eClerx Services Ltd. furthermore Paisalo Digital Ltd., which gives more modest advances through its application.
6. Defense Manufacturers
- Organizations fabricating defense equipment hope to profit from Sitharaman’s plan to reserve 68% of the area capex for nearby organizations in the annual budget plan. Gainers incorporate Larsen and Toubro Ltd., Bharat Forge Ltd. furthermore Paras Defense and Space Technologies Ltd. The robot new companies that could benefit incorporate Zeus Numerix, New Space India Ltd, and BotLab Dynamics.
Losing Sectors
1. State-Run Bank
- India intends to begin advanced cash, moving the principles for customary banking in the country as it attempts to stay up with the worldwide advance toward virtual monetary instruments. The move will influence India’s old-fashioned loan specialists State Bank of India Ltd., Bank of Baroda, Canara Bank, Union Bank of India, Bank of India, and Punjab National Bank.
2. Crypto Players
- The choice to require 30% duty on benefits from computerized resource exchanges, including digital currencies and non-fungible tokens, may preclude a sweeping prohibition on such tokens for the present however it will make exchanging them less beneficial. This will likewise influence crypto trades. Players impacted incorporate WazirX, Zebpay, CoinDCX, and Coinswitch Kuber.
3. Coal and Thermal Power
- The organizations to watch after India’s incentives for solar-based power and plans to involve biomass pellets in nuclear energy stations in a bid to depend less on coal incorporate Coal India Ltd. Singareni Collieries Co., Adani Enterprises Ltd. These organizations are providers of imported coal.
4. Stainless Steel
- India has made plans to deny a few enemies of unloading and balancing obligations on hardened steel, covered steel level items, bars of amalgam steel and rapid steel, given the ascent in metal costs. This is relied upon to influence the greatest maker Jindal Stainless Ltd. also Tata Metaliks Ltd.
5. Automobile Makers
- Vehicle producers, which got little consideration from the money serve, keep on reeling under a worldwide semiconductor crunch. The S&P BSE Auto Index was the most exceedingly awful entertainer among 19 sectoral checks after Tuesday’s budget declaration. Organizations to watch incorporate Maruti Suzuki India Ltd., Tata Motors Ltd, Mahindra, and Mahindra Ltd.
How Does The Union Budget 2022 Affect General Public
Prime Minister Narendra Modi on Tuesday termed the Union Budget similar to a “people-friendly and progressive budget” and one that gets new expectations and opens doors for individuals. In a broadcast explanation after the show in Parliament, he praised Union Finance Minister Nirmala Sitharaman and said the Budget tended to both long-haul economic development goals and reliefs for poor people.
“It strengthens the economy; it’s full of ‘more infrastructure, more investment, more growth, and more jobs. There is also a new provision of green jobs; Budget ensures a bright future for youth,” Mr. Modi added. The Prime Minister brought up that distributions in the Budget for drinking water and for homes under the Pradhan Mantri Awaas Yojana were pointed toward aiding poor people. “Every poor person should have a pucca house, water available in taps, availability of toilets and gas facility, and all these have been given special attention,” he said.
Apart from government assistance plans for poor people, availability has likewise been given full significance, he said. Without precedent for the country, he added, the Parvatmala plot has been sent off for regions, for example, Himachal, Uttarakhand, Jammu and Kashmir, and Northeast to improve the network.
Top 13 Interesting Facts About Budget 2022-23
The word Budget has come from the French word ‘Bougette’ which means ‘small bag’.
Budgets auditable by parliament were first presented in the Netherlands in 1572, England in 1689, France in 1830, Denmark, Piedmont and Prussia in 1848, Portugal in 1851, Sweden in 1866, Austria in 1867, and Spain in 1876.
The first budget of colonial India was introduced on 7 April 1860 by the East India Company to the British legacy.
After Independence first budget in India was presented on November 26, 1947.
The first budget of independent India was presented by Finance Minister R.K. Shanmukam Chetty.
The first budget was a review of the Indian economy and no new taxes were brought up. It is to be noted that almost 46% of the Budget or Rs. 92.74 crore were allocated for the defence services department.
Current Finance Minister Smt Nirmala Sitharaman holds the record for delivering the longest budget speech. She spoke for 2 hours and 42 minutes while presenting the budget for 2021-22.
The record of the shortest Budget speech was set in 1977 by then finance minister Hirubhai Mulljibhai Patel. It had 800 words.
In India, Morarji Desai has presented 10 budgets in his service period which is the highest.
For the Financial year 1973-74, the Budget was introduced by the then Finance Minister Yashwantrao B. Chavan and is called as ‘Black Budget’ due to a high budget deficit of Rs 550 crore– the maximum until that time. The Budget followed the Indo-Pak war of 1971 and failed during the monsoon season.
The Budget prepared and introduced by the then Finance Minister Manmohan Singh for the FY 1991-92 is known as ‘The Epochal Budget’– a budget that changed India forever as it marked the economic liberalization of the nation.
On 5 July 2019, Finance Minister Nirmala Sitharaman became the second woman to have presented the Budget after former PM Indira Gandhi. She is the first full-time woman Finance Minister of India.
In the history of independent India, the budget of 2021-22 was the first paperless budget introduced.
Sparsh Jugran
Writer
13angle
