Budget 2024: Some Amazing Facts about India’s Union Budget

In anticipation of the upcoming Lok Sabha polls, Finance Minister Nirmala Sitharaman is set to present the interim budget on February 1, 2024, which is today. As this pre-election budget unfolds, it would be interesting to see how the finance minister strikes a balance between populism and fiscal prudence, aiming to meet the expectations of the populace while ensuring responsible financial management.

The interim budget is a critical tool for the government to address the needs and concerns of the public, especially in the run-up to elections. Striking this delicate balance involves implementing measures that resonate with the masses while also maintaining fiscal discipline to ensure the long-term economic health of the nation.

As we await the budget announcement, it’s worth reflecting on some amazing facts about India’s Union Budget, shedding light on the intricate financial workings of the country. This annual financial exercise not only outlines the government’s revenue and expenditure but also serves as a roadmap for economic development.

Here are some amazing facts about India’s Union Budget:

Over 160-Year-Old Legacy:

The first Indian Budget was presented 160 years ago in 1860 by a Scottish economist named James Wilson. After Independence, the first Indian Budget was presented on November 26, 1947, by the then Finance Minister, Mr. RK Shanmukham Chetty. The budget provided a basic overview of India’s economy and did not include any changes or proposals.

Halwa Ceremony:

In the Indian tradition, it is customary to consume something sweet before embarking on auspicious endeavors. This practice is observed even during budget presentations. Ten days before the budget is presented, a ‘Halwa’ ceremony takes place at the Ministry of Finance. During this ceremony, ‘Halwa’ is prepared and served at the location where the budget is printed. This ritual signifies the commencement of the budget printing process and is joyfully celebrated by government officials engaged in the budget-making process.

Prime Minister Presented the Budget in 1958:

While the finance minister is typically responsible for presenting the budget each year, there have been occasions when the Prime Minister assumed this role.

In 1958, Pandit Jawaharlal Lal Nehru became the first Prime Minister to present the budget following the resignation of Finance Minister Mr. TT Krishnamachari. In 1970, the then Prime Minister, Mrs. Indira Gandhi, took on the task of presenting the budget after the resignation of Finance Minister Mr. Morarji Desai. Similarly, in the fiscal year 1987-88, the then Prime Minister, Mr. Rajiv Gandhi, presented the budget in the absence of Finance Minister Mr. VP Singh, who had resigned.

To get the Budget 2024 live update, click here.

The One Man Behind the Budget:

Perhaps not widely known, Prof. Prasanta Chandra Mahalanobis played a pivotal role in conceptualizing the Union Budget. A distinguished Indian scientist and statistician, he served as a key member of the Planning Commission of India. Recognized as the father of modern statistics in India, PC Mahalanobis wielded significant influence in shaping the budgetary framework of independent India.

Digitalization in India: From Briefcase to Tablet:

Finance Minister Nirmala Sitharaman played a key role in modernizing the presentation of the Union Budget, transitioning from the traditional briefcase to a tablet. In 2019, she introduced a distinctive touch by replacing the conventional ‘budget briefcase’ with a ‘bahi khata’ for a more traditional feel. During her initial Budget announcement in 2019, Sitharaman presented the budget using a red-colored ‘bahi khata’ instead of the traditional briefcase. Subsequently, amidst the COVID-19 pandemic, there was a shift towards a paperless budget presentation, and for the Union Budget of 2021-22, Finance Minister Nirmala Sitharaman presented the budget using a digital tablet.

Maximum Number of Budgets Presented by:

Former Prime Minister Morarji Desai holds the record for presenting the highest number of budgets in India, having presented the budget on ten occasions. However, with the upcoming interim budget, Finance Minister Nirmala Sitharaman is poised to become the minister who has consecutively presented the maximum number of Union Budgets, marking a significant milestone in her tenure.

This Time the Budget Was Leaked:

Despite the high security maintained during the printing of the Union Budget, it was leaked in 1950 when the then Finance Minister, John Mathai, was scheduled to present the Union Budget in Parliament. Following the leak, the printing of the Budget was shifted from Rashtrapati Bhawan to Minto Road. After 1980, the budget printing process shifted to the North Block basement.

To get the Budget 2024 live update, click here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.