Indian Budget from 1947 to 2019
The union budget of India mostly in the month of february. In the early time of budget is last working day of february. The first budget was by Finance Minister of India R K Shanmukham Chetty. He is industrialist, erstwhile Diwan of Cochin state and Constitutional Adviser to the Chamber of Princes. He had been a member of the pro-British Justice Party.
Let us go to the Budgets
- First budget of India covered just 7-1/2 months, from August 15, 1947, to March 31, 1948.
- The main highlight of the first budget was the decision to pass the budget.
- Partition and the consequent destabilisation were the core factors that determined the budget provisions.
- The three major expenses in the budget were on food grain production, defence services and civil expenditure.
- Food production was low, and therefore, self-sufficiency in food grains was accorded highest priority.
- The targeted budget revenue was Rs 171 crore (approx).
- Of this, Rs 15.9 crore was expected from the posts and telegraph department.
- The expected revenue expenditure was Rs 197 cr (approx), of which defence was allocated Rs 92.74 crore.
- The increase in expenditure was on account of expenses allocated for stabilisation, refugee relief and rehabilitation.
1951: The first Budget of the Republic of India
John Mathai, Finance minister in the Congress government presented the Budget on February 28, 1950. This budget laid down the roadmap for the creation of the Planning Commission. High inflation, increased cost of capital, low level of savings and thus low level of investment and production had marked the years following Independence.A large part of the blame or the credit – whatever way it is looked at – for the Indian growth model goes to the Planning Commission.
1973:Yashwantrao B. Chavan,
Yashwantrao B. Chavan, Minister of Finance in the presented the budget on February 28, 1973
Provided Rs 56 crore for the nationalisation of the general insurance companies, Indian Copper Corp and coal mines. This was a huge sum: the estimate for the budget deficit for 1973-74 was Rs 550 crore.
It is argued that nationalisation of coal mines had an adverse impact on coal production in the long run. The coal assets were bundled together under a single government-owned entity with no scope for market competition. There was little incentive for deployment of efficient production techniques and introduction of new technologies. India has been a net importer of coal over the past 40 years.
1991: Manmohan Singh
Manmohan Singh, Finance Minister in the Narasimha Rao government presented the Budget on July 24, 1991
Overhauled the import-export policy, slashed import licensing and went for vigorous export promotion and optimal import compression to expose Indian industry to competition from abroad. Began rationalisation of duty structures by pruning the peak customs duty from 220 per cent to 150 per cent.India is today the second fastest growing economy in the world.
Manmohan Singh is the most reticent of men, but in his first Budget Speech of 1991 he made some uncharacteristic personal remarks that recalled his own history: “I was born in a poor family in a chronically drought prone village which is now part of Pakistan. University scholarships and grants made it pos-sible for me to go to college in India as well as in England.This country has honoured me by appointing me to some of the most important public offices of our sovereign Republic. This is a debt which I can never be able to fully repay. The best I can do is to pledge myself to serve our country with utmost sincerity and dedication. This I promise to the House.”
1997: Palaniappan Chidambaram
Palaniappan Chidambaram, Finance Minister in the United Front government presented the Budget on February 28, 1997Made tax rates moderate for individuals as well as companies. Allowed companies to adjust MAT paid in earlier years against tax liability in subsequent years. Launched the Voluntary Disclosure of Income Scheme or VDIS, to bring out black money. Phased out ad hoc treasury bills used for financing the budget deficit.
India had a peak income tax rate in the late 1960s and early 1970s of 97.5 per cent. The moderation in rates improved overall compliance as those who used to find rates prohibitive earlier began to pay up instead of hiding their incomes. Since 1997-98, personal income tax collections have gone up from Rs 18,700 crore to Rs 100,100 crore during April 2010- January 2011. The VDIS garnered about Rs 10,000 crore. Higher disposable income in the hands of taxpayers helped generate demand. The incremental tax revenues were leveraged into developmental public expenditure on social welfare and the infrastructure sector.
2000: Yashwant Sinha,
Yashwant Sinha, Finance Minister in the NDA govt presented on February 29, 2000Phase out of Manmohan Singh’s incentive for software exporters. In Budget 1991, Singh had made income from software exports tax-free for three years , and then extended the tax holiday to perpetuity in Budget 1995.Singh had intended to promote India as a major software development centre in the world. The introduction of this tax holiday to software export sector was followed by exceptional growth in Indian IT industry. At the same time, no industry can remain dependent on tax incentives in perpetuity. So while the credit for India emerging a major global software hub goes to Singh, Sinha, perhaps contributed a great deal to infusing confidence in it.
2019: Nirmala Sitharaman.
Nirmala Sitharaman the first women finance Minister after Indira Gandhi.In her Budget vision is 10 years
- Fully automated GST Refund module shall be implemented; multiple tax ledgers to be replaced by one; invoice details to be captured in a central system
- Basic customs duty on certain items to be increased to promote the cherished goal of Makein India. Import of defence equipment not manufactured in India are being exempted from basic customs duty.
- The government today increased customs duty on gold. According to the Budget proposals, import duty to be hiked on gold and precious metals to 12.5%, from current level of 10%.
- Nirmala Sitharaman opened her speech with a target of making India a 5-trillion-dollar economy. She said that the goal was “imminently achievable” in the next few years. She said India took 50 years to become a $1 trillion economy. The Indian economy was at $1.85 trillion five years back, she added. “We have now reached the $2.7-trillion-mark and would become a $3 trillion economy in the current year,” she said.
- Provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed upto 31 March 2020 for purchase of house up to ₹45 lakh.
- Public sector banks to be provided 70,000 crore rupees to boost capital and improve credit.
source: the economic times,business todaylivemint.com