
Union Finance Minister Nirmala Sitharaman is all set to present the Union Budget for FY26 on 1st February, 2025. As you may know, each budget sets the course for India's economic status and development while ensuring social justice and equality for all its people. As we eagerly await the budget and its many announcements, why not take a look back at seven iconic budgets we've seen during the course of independent India's eventful history?
7 Black Budget (1973)
If the name gives you a gloomy impression, it’s because the situation India found itself in at the time was certainly gloomy, primarily due to a fiscal deficit that was estimated at Rs. 550 crores at the time. Presented by Yashwantrao B. Chavan in February 1973, the budget allocated Rs. 56 crores for the nationalization of the Indian Copper Corp, coal mines, and other general insurance companies.
6 The Longest Budget Speech (2020)
Perhaps the introduction of the New Tax Regime took time to explain, because the 2020 budget speech, delivered by Union Minister Nirmala Sitharaman, was the longest budget speech on record. Clocking in at a record 2 hours 42 minutes, the 2020 budget also outlined its plans to raise funds via the listing of the LIC and its plans to develop 100 new airports by 2025 via the UDAN scheme.
5 The Carrot and Stick Budget (1986)
Beyond its obviously memorable name, this budget, presented by then Finance Minister VP Singh, is widely remembered for the tough measures it introduced to dismantle the “License Raj” in India. Other significant developments that occurred during the budget was the launch of the drive against tax evaders, smugglers, and black marketers and the introduction of the MODVAT (Modified Value Added Tax) Credit to reduce the tax impact on end consumers.
4 Free India’s First Budget (1947)
Just over three months after India won its independence, R.K. Shanmukham Chetty - a student of economics and the Diwan of Cochin Kingdom from 1935-41 - presented India’s first budget on 26th November 1947. Mr. Chetty was also a crucial contributor to the formulation of key trade and commerce bodies.
Curious about what the financials looked like? The targeted budget revenue was estimated at Rs. 171.15 crores. And while the total expenditure was estimated at Rs. 197.29 crore, the defence services were allocated a whopping Rs. 92.74 crore of that sum.
3 The Millennium Budget (2000)
As the name suggests, this was the first budget of the millennium. Presented by then Finance Minister Yashwant Sinha, the budget was influential for the positive implications it had for the IT Sector. The custom duty for computers and computer accessories was reduced. But more importantly, this budget phased out the incentives enjoyed by software exporters, which helped the domestic IT industry prosper.
2 Dream Budget (1997)
The budget of 1997 was so surprising that the media at the time dubbed it the “Dream Budget”. Delivered by then Finance Minister P. Chidambaram, the budget introduced sweeping tax reforms using the Laffer Curve principle, the core principle of which states that raising taxes beyond a certain degree is counterproductive to generating higher revenue.
Chidambaram believed lower taxes would increase compliance and would result in both citizens and corporations paying more taxes. He also introduced the Voluntary Disclosure of Income Scheme, a scheme that allowed tax defaulters a chance to declare their undeclared wealth, and they would be taxed under the then tax rates.
1 Epochal Budget (1991)
This is remembered as a milestone budget as it led to the economic liberalization of India while the country was reeling on the verge of bankruptcy. Presented by then Finance Minister Dr Manmohan Singh in 1991, the budget led to sweeping changes in the economy, like the slashing of customs duty from 220% down to 150%, making the Indian economy more conducive to global trade. And while the budget is widely remembered for the economic reforms it led to, it also holds the record for being the longest budget in terms of word count. And at 18,650 words long, the budget still holds that distinction almost 33 years since!
And that concludes the list of seven really influential budgets. But the next time the Union Finance Minister says, “I rise to present the Budget,” it would serve us well to pay closer attention. Because the decisions arrived at during the Union Budget have the potential to change the course of the Indian economy.