INDIAN BUDGET

INDIAN BUDGET

The word budget is derived from bowgette, which means a ‘leather bag’ in French. The budget is announced to disclose the government’s future expenditures intended to strengthen the nation’s economy and consolidate economic stability through tax proposals.

Our budget follows the UK Budget in many ways, including for many years, timing, since it used to be held at 5:30 pm which was noon in the UK.

The budget was first introduced in India on 7^th April, 1860 by the East-India Company to the British Crown. And the first Indian Budget was presented by James Wilson on 18^th February, 1869. James Wilson was a largely self taught man who had worked in his family occupation making and selling hats, before becoming a scholar and a writer largely based on his brilliance and knowledge of economics and commerce.

Shanmukham Chetty, first Finance Minister of India presented the budget on 26^th November, 1947 without any tax proposals. RK Shanmukham Chetty served as the finance minister in Jawaharlal Nehru’s Cabinet between 1947 and 1949. Before Shanmukham Chetty, Liaquat Ali Khan was the finance minister of the All India Muslim League from October 1946 to independence in 1947.

Chetty was succeeded by John Mathai who in 1949-50, delivered the most lucid budget speech as he took the decision not to read out all the details telling members that as white paper with all the details was being circulated. John Mathai then gave a mini lecture on inflation and economic policy. It was the first budget for a really united India since it included the financial statements for former princely states and where the biggest news was the news of forming of Planning Commission and the need for having five years plan.

After John Mathai, CD Deshmukh presented the budget in the newly formed Indian Parliament. Deshmukh was the first Indian RBI governor and finance minister from 1950 to 1956. Budget papers in Hindi were being printed from 1955 onwards.

So, this was the brief look on the history of our Indian Budget.