Did you know that the word 'budget' comes from the French word 'bougette'? The word bougette means leather briefcase. This is why every Finance Minister of India carries their budget documents in a leather briefcase on budget day.
India's annual budget is more than just a financial plan; it shows the nation's priorities, challenges, and goals. Over the last 70 years, it has changed a lot, reflecting the country's journey from post-independence struggles to digital transformation.
Here are 10 interesting facts about the evolution and impact of India's budget, showing how each budget captures the spirit of its time, addressing current economic needs and planning for future growth.
1. India's First Interim Budget (1947)
Source: The Economics Times
India's first budget was presented by the first Finance Minister of India R.K. Shanmukham Chetty soon after the independence of India in 1947. The main aim was to improve the weak economy, dealing with food shortages and high inflation. This budget focused on solving immediate economic problems and planning for future growth, setting the foundation for India's financial management.
2. Budget Leak Incident (1950)
Source: Indian Express
Despite strict security measures, the budget was leaked in 1950, causing a big fuss before its official presentation in Parliament. This incident highlighted the importance of maintaining confidentiality in budget preparations. The leak led to the implementation of stricter protocols to prevent future breaches and ensure the integrity of the budgetary process. It was a reminder of the challenges in managing sensitive financial information and the need for strong protections.
3. Introduction of Hindi in Budget Documents (1955-56)
Source: Wikipedia
In an effort to promote linguistic inclusivity, Finance Minister C.D. Deshmukh started printing the budget in both Hindi and English from the 1955-56 budget. This change made financial information more accessible to a wider audience and recognized India’s diverse languages. By including Hindi, the government aimed to reach out to citizens who didn’t speak English, ensuring a broader spread and understanding of budget policies.
4. First Time a Prime Minister Presented the Budget
Source: Hindustan Times
In 1958-59, Prime Minister Jawaharlal Nehru broke the tradition by presenting the budget himself. This was the first time a Prime Minister took on this role instead of a Finance Minister, emphasising how important economic planning was for the country’s development. Nehru’s decision highlighted his commitment to shaping India’s future and set a precedent for future leaders to take an active role in shaping the country's fiscal policies.
5. Record for Most Budget Presentations
Source: Money Control
Morarji Desai, who was both Finance Minister and later Prime Minister, presented 10 budgets from 1962 to 1969. After him, P. Chidambaram gave 9 budgets, and both Pranab Mukherjee and Yashwant Sinha each presented 8 budgets. Morarji Desai's work was very important in shaping India's fiscal policies. He focused on inflation, promoting savings, and encouraging investments. His long tenure and consistency helped make India's economic policies steady and continuous.
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6. Halwa ceremony
Source: Press Information Bureau
Dating back to 1980, every year, right before the Finance Minister presents the Budget, a unique tradition called the ‘halwa ceremony’ takes place. At this event, a special halwa is prepared and served at the place where the Budget is printed. The Finance Minister and key officials gather for this occasion, which marks the beginning of a ‘lock-in’ period. During this time, the officials involved in printing the Budget are kept inside the finance ministry with no access to the outside world or any communication devices, ensuring complete secrecy until the Budget is revealed.
7. Longest Budget Speech Record (words)
Source: Star Of Mysore
Manmohan Singh's 1991-92 budget speech was the longest speech ever for to content, with 18,650 words. This speech is remembered for its depth and the vast economic reforms it proposed. Singh's speech explained why the liberalisation measures were needed and how they would begin to transform India's economy. This speech marked a big shift in India's economy from protecting local industries to opening up and competing globally.
8. From Briefcase to Bahi Khata
Source: The Economic Times
For many years, Finance Ministers always brought a briefcase to Parliament for the Union Budget presentation. But in 2019, Finance Minister Nirmala Sitharaman switched from the traditional briefcase to a 'bahi khata' (ledger) for the budget presentation. This change showed a blend of old traditions and modernity in handling finances. The 'bahi khata' represents Indian culture and also symbolises transparency and accountability in financial management. People liked this new approach because it connected with how they view budgeting and financial planning.
9. Longest Budget Speech Record (time)
Source: India Today
Finance Minister Nirmala Sitharaman's 2020 budget speech holds the record for the longest budget presentation with respect to time, lasting 2 hours and 42 minutes. The detailed speech covered a wide range of topics, showing detailed discussions on financial plans. The length of the speech showed many different and important topics were covered in the budget, from economic changes to social programs. It also demonstrated the government's commitment to transparency and being detailed about its financial plans.
10. First Paperless Budget (2021)
Source: Affairscloud
In 2021, during the COVID-19 pandemic, with social distancing norms and restrictions on physical gatherings, India switched to a paperless budget presentation. Finance Minister Nirmala Sitharaman broke the tradition of ‘bahi khata’ and delivered the budget digitally, showing the government's move towards technology. This change saved paper and showed India’s openness to modern practices. It marked a new chapter in budget presentations, focusing on efficiency and ease of access.
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Conclusion
India's budget history shows its strength, ability to adapt, and vision for economic growth. From facing early challenges after independence to embracing new technologies, each budget reflects the changing needs of the country. Looking at these milestones helps us understand how India’s economic policies have developed and what might come next. As we approach Budget 2024, knowing this history gives us a clear view of the country's financial priorities and goals. India's budget journey from 1947 to 2024 highlights its progress and commitment to growth, inclusivity, and sustainability.