Union Budget 2023-24: Summary of some of the most important Budgets in history

Union Budget 2023-24: As the country awaits Finance Minister Nirmala Sitharaman to present her sixth Budget in the Parliament on February 1, 2024, here is a summary of some of the most important Budget presentations in history. These seven Budgets have contributed the most in shaping the economy of India:

2018 Budget: Union budget 2018 was presented by Arun Jaitley. Budget 2018 was aimed at improving the economy of rural India. So, it proposed steps to double the farmers’ income by 2022. It also allocated Rs 14.34 lakh crore towards creating livelihoods and infrastructure and multiple other measures to boost rural India. 

1991 Budget: Budget 1991 began the process of economic liberalisation in India. The Budget came in the backdrop of a Balance of Payments crisis, which threatened to bankrupt India. The Budget introduced several changes in import-export policy, reduced import licensing and promoted exports. The budget encouraged foreign investment into the Indian industry and laid the foundation for Indian companies to face global competition.

1997 Budget: Finance Minister P Chidambaram's first Budget was noted for its bold reforms amid political uncertainty around the ruling United Front government. The maximum marginal income tax rate was reduced to 30 per cent from 40 per cent. Taxes on domestic and foreign companies were reduced from 40 per cent and 55 per cent to 35 per cent and 48 per cent, respectively. The surcharge on corporate tax was also abolished.

1986 Budget: The Union Budget 1986 presented by VP Singh is considered the starting point for reforms in India's indirect taxation. He introduced MODVAT (Modified Value Added Tax) scheme which allowed the manufacturer to obtain instant and complete reimbursement of the excise duty paid on the components and raw materials. The new tax was also intended to help manufacturers avoid double taxation and tax burden.

1957 Budget: Union Budget 1957 was presented by TT Krishnamachari and is known for introducing several taxes, especially the wealth tax, which remained in force till 2016. The wealth tax was introduced to curb the possibility of evasion. The Budget also imposed restrictions on imports through an import licensing system in a bid to improve the country's balance of payment situation.

1970 Budget: The Union Budget 1970 was presented by the then Prime Minister Indira Gandhi. The 1970 Budget is now known for increasing the tax burden. That year, the Budget increased the marginal tax rate by 11 percentage points to 93.5 per cent on all incomes above Rs 2 lakh.