The Indian Union Budget is one of the most critical events in the country’s financial calendar, and it serves as a roadmap to the nation’s economic development. This annual event is keenly watched by the citizens, businesses, and policymakers because this event spells out government spending, tax policies, and economic priorities.
But did you know that there are many lesser-known and intriguing facts about the Union Budget that make it even more fascinating? Let’s take a look at some of them:
1. A 160-Year-Old Tradition
The first-ever Indian Budget was presented way back in 1860 by James Wilson, a Scottish economist working with the East India Company. After gaining independence, the first budget of the new republic was presented on November 26, 1947, by Finance Minister RK Shanmukham Chetty. It was an interim budget that covered just 7.5 months up to March 1948. It was made with the idea of overcoming economic problems in newly independent India.
2. The Concept of the Union Budget
The concept of a union budget was first introduced by Professor Prasanta Chandra Mahalanobis, an Indian statistician and scientist. He was also a key member of the Planning Commission. PC Mahalanobis played a significant role in shaping India’s budgetary framework and is often regarded as one of the fathers of modern statistics in India.
3. When Prime Ministers Present the Budget
Although the Finance Minister traditionally presents the budget, there have been instances where the Prime Minister took on the responsibility. This happened in 1958, 1970, and 1987, when Prime Ministers like Jawaharlal Nehru, Indira Gandhi, and Rajiv Gandhi presented the budget due to resignations of their Finance Ministers.
4. Record Budget Presenters
The record for presenting the maximum number of budgets is held by former Prime Minister Morarji Desai, who presented 10 budgets between 1962 and 1969. Other notable finance ministers include P Chidambaram, Pranab Mukherjee, and Yashwant Sinha, who have presented several budgets during their careers.
5. The ‘Halwa Ceremony
One of the most charming traditions associated with the Indian Union Budget is the ‘Halwa Ceremony’. About 10 days before the budget is presented, the Ministry of Finance holds a ceremony where a special sweet dish, Halwa, is prepared and served to all officials involved in the budget-making process. This ceremony marks the printing of the budget documents and is a lighthearted tradition before the intense task of presenting the budget.
6. Longest and Shortest Budget Speeches
The length of budget speeches differs every year. The shortest budget speech was given by Finance Minister Hirubhai Mulljibhai Patel in 1977, with only 800 words. In contrast, the longest speech was given by Union Finance Minister Nirmala Sitharaman in 2020, which lasted 2.42 hours. In terms of word count, the longest speech was given by Manmohan Singh in 1991, with more than 18,600 words!
7. The Railway Budget Was Separate Till 2017
The Railway Budget was presented separately from the Union Budget for 92 years. However, in 2017, Finance Minister Arun Jaitley merged the two budgets, ending a tradition that dated back to the British colonial era.
8. A Paperless Budget
In 2021, for the very first time in the history of India, the Union Budget went paperless because of COVID-19. That marked an important shift for Indian government functions to go digital and become green.
9. Union Budget in Both Hindi and English
Until 1955, the Union Budget presentation was done only in English. However, in the year 1955, Finance Minister CD Deshmukh introduced the budget presentation in both English and Hindi, which continues till today.
10. The Time of Presenting the Budget Changed
The Union Budget had been presented in the past traditionally at 5:00 pm on the last working day of February. Since 1999, Finance Minister Yashwant Sinha brought it forward and started presenting at 11:00 am, while in the year 2017, the budget was presented again on February 1st for every year.
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