As India prepares for the Union Budget 2026 on February 1st, looking back at the origins of this tradition reveals how much the nation’s priorities have shifted—from serving a colonial empire to building a sovereign welfare state.
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1. The First Budget of Colonial India (1860)
The concept of a formal budget was introduced to India by the British East India Company to stabilize finances following the massive expenditures of the 1857 War of Independence.
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Date: April 7, 1860
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Presented By: Jam
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y: Unlike modern budgets centered on “Viksit Bharat” (Developed India), this colonial version was designed strictly for the economic survival of the British administration.
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Also R
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es Wilson, a Scottish economist and the first “Finance Member” of the Viceroy’s Council.
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Key Focus: Wilson’s primary goal was to find new revenue streams for the British Crown. Notably, he introduced the Income Tax to India through this very budget.
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2. Independent India’s First Budget (1947)
The first budget of a free India was presented under extraordinary circumstances, just months after the trauma of Partition.
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Date: November 26, 1947
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Presented By: Sir R.K. Shanmukham Chetty, India’s first Finance Minister.
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Nature of the Budget: It was an Interim Budget covering only seven and a half months (August 15, 1947, to March 31, 1948).
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The Shared Currency: A fascinating fact from this budget was the decision that India and Pakistan would share the same currency until September 1948 to ensure economic stability during the transition.
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Financial Snapshot:
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Estimated Revenue: ₹171.15 crore
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Fiscal Deficit: ₹24.59 crore (though initial reports often varied slightly, this was the finalized baseline).
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Top Priority: 47% of the total budget was allocated to Defense, reflecting the immediate security challenges of the time.
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3. Interesting “Budget Firsts” & Trivia
| Milestone | Details |
| First Budget of the Republic | Presented by John Mathai on Feb 28, 1950, after the Constitution was adopted. |
| Hindi Inclusion | Until 1955, budgets were in English only. In 1956, Hindi was introduced. |
| First Woman FM | Indira Gandhi (1970), who held the portfolio as Prime Minister. |
| Paperless Shift | Nirmala Sitharaman presented the first digital budget in 2021 due to the pandemic. |
| Time Change | Until 1999, the budget was at 5:00 PM (British tradition). Yashwant Sinha moved it to 11:00 AM. |
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