Union Budget 2024: Historic budget announcements since 1947 that changed India's financial landscape
Union Budget 2024: In the 1991 budget, Manmohan Singh opened India's market through the LPG (liberalisation, privatisation and globalisation) policy. He introduced trade policy reforms, focused on increasing forex reserves and reducing the fiscal deficit. He also revised income tax slabs twice during his tenure.
Union Budget key announcements since 1947, Finance Minister Nirmala Sitharaman presents Budget 2024: The budget is one of the most-awaited government events in India. Every year, crores of taxpayers, from the layman of a hamlet to the top bureaucratic to business magnet, keenly glue to information sources to listen to the announcements of the finance minister. They are curious to know if any announcement will change their lives—income tax slabs, industrial policy, or the relaxation of trade taxation. The speech of finance minister Nirmala Sitharaman, when she presents her seventh consecutive budget today (Tuesday, July 23, 2024), will be no different. People from all walks of life will be keen to know whether any action by the finance minister will change the path they chart in the future. There have been many occurrences since independence in 1947 when budget announcements have produced key events that changed the history of India. Here, we are discussing a few of them.
First budget and introduction of planning commission
RK Shanmukham Chetty presented the first budget in independent India on November 26, 1947. The planning commission was introduced during his tenure.
First income tax slab revision
The first income tax slab revision was done by John Mathai in 1949-50. The first five-year plan was also introduced during his tenure.
T. T. Krishnamachari introduced wealth tax
He introduced the expenditure tax and the wealth tax. For the first time in history, he introduced the voluntary disclosure of concealed income schemes.
Morarji Desai sows seeds of Green Revolution
He holds the record for presenting the most number of budgets at 10. He established the Indian Council of Agricultural Research and sowed the seeds of the Green Revolution. He also introduced the Gold Control Act of 1962. Desai resigned after Indira Gandhi nationalised 14 major banks without consulting him.
Tax slab revision by YB Chavan
In 1974–75, finance minister YB Chavan cut the maximum marginal rate from 97.75 per cent (the highest-ever) to 75 per cent. The highest tax slab was kept at 77 per cent.
Chidambram Subramaniam introduces EPF, ESI
During his tenure from October 10, 1974, to March 24, 1977, social security schemes such as ESI, EPF, and the family pension were announced.
R Venkatraman exempts excise duty on medicines
During his tenure from January 14, 1980, to January 15, 1982, Venkatraman removed excise duty from life-saving medicines, sewing machines, cycles, and pressure cookers. He removed the licence fee on radio.
Rajiv Gandhi introduces corporate tax
In his brief stint as finance minister in 1987, he introduced the corporate tax, later known as the Minimum Alternate Tax.
Manmohan Singh introduces LPG
In the 1991 budget, he opened India's market through LPG (liberalisation, privatisation and globalisation). Introduced trade policy reforms and focused on increasing forex reserves and reducing the fiscal deficit. He also revised income tax slabs twice during his tenure.
P Chidambaram changes tax slabs, introduces MGNREGS
During his tenure in 1997-1998, he presented 'Dream Budget', which presented the roadmap for economic reforms. He also changed income tax slabs. In his stint between May 23, 2004 and November 30, 2008, he also introduced MGNREGS, which was a 100-day employment guarantee programme for rural labourers. He also introduced the Direct Benefit Transfer (DBT) Scheme.
Pranab Mukherjee introduces the Food Security Bill and changes tax slabs
Jaitley introduced the Food Security Bill. Income tax slabs were also changed twice during his tenure in 2010–11 and 2012–13.
Nirmala Sitharaman introduces new tax regime
Nirmala Sitharaman took the historic decision of introducing a new tax regime in 2020-21. It became a default setting for new taxpayers in the 2023-24 budget.