The history of India’s Union Budget is effectively the biography of a nation in transformation. This timeline traces the shifting centre of economic gravity through five decisive phases and how the ‘Briefcase’ has carried India’s destiny — from grain sacks to smartphones — in each Finance Minister’s own words.
Phase 1: The Early Years
Year: 1947-48 | A free nation
The primary focus was for the nation to “consolidate into one unified whole,” dealing with the “setbacks resulting from partition,” and the rehabilitation of refugees. “The estimates include... a lump sum provision of ₹22 crores for expenditure on the evacuation, relief and rehabilitation of refugees from Western Pakistan.”
Year: 1951-52 | Food security
The ‘Grow More Food’ campaign was central. The FM argued that the food situation has deteriorated and as a result imports had to be increased. An additional 2 million tons of wheat were to be procured from the U.S. “Although Government are doing everything possible... the coming year the food position in the country is not likely to be easy.
Year: 1955-56 | The plan era
The last budget of the First Five Year Plan was framed to secure the “orderly implementation of the Plan” and stock-taking of achievements. “The plan was formulated under difficult circumstances with inflation, shortages and the like clouding the economy. The formulation of a plan was in itself a breaking of new ground.”
Phase 2: Middle decades: Defence & Agriculture
Year: 1963-64 | National security
Following the Chinese aggression, the “paramount consideration” became building defence potential. Defence expenditure was increased to ₹867 crore. “Can we afford not to meet the challenge of the Chinese aggression? Would it be prudent to try and meet this challenge by forsaking our aspirations for development?”
Year: 1970-71 | Social justice
A shift towards reducing income disparities. “It is generally accepted that social, economic and political stability is not possible without the growth of productive forces and the augmentation of national wealth. Also, that such growth and increase in wealth cannot be sustained without due regard to the welfare of the weaker sections of the community.”
Year: 1979-80 | Rural focus
Eradicating poverty/unemployment by assigning “pride of place” to agriculture and rural development. “So long as there is great poverty and unemployment, particularly in the rural areas, and agriculture has the largest potential for generating employment, there can be no let up in the task of agricultural improvement. Our objective should be to raise productivity further.”
Phase 3: Turning point: The Reform Era
Year:1991-92 | Liberalisation
Budget was presented during a “fiscal crisis” and “balance of payments” trouble. The focus shifted to “macro-economic stabilisation” and “structural reform” to integrate India with the world. “After four decades of planning for industrialisation, we have now reached a stage where we should welcome, rather than fear, foreign investment.”
Year: 1994-95 | A modern tax system
Focus on restoring the health of the banking and phasing out “ad hoc Treasury Bills” to strengthen fiscal and monetary discipline. “We must accelerate the reform and modernisation of our tax system... structure now proposed goes a long way towards the kind of modern tax system and moderate tax rates and an emphasis on compliance...,”
Year: 1999-2000 | Knowledge economy
“Jai Vigyan” became a tribute to scientists and innovators. “The time has come to unleash the creative potential of our scientists and innovators at grass roots level. Only then we can make India truly self-reliant and a leader in sustainable technologies. I propose a national foundation for helping innovators all over the country.“
Phase 4: Technology in focus: Inclusion & Infra
Year: 2000-01 | Infotech revolution
Acknowledged the potential of IT firms. “Young Indian entrepreneurs are at the forefront of the infotech revolution, whether in Silicon Valley, Bangalore or Hyderabad. They have shown us how ideas, knowledge, entrepreneurship and technology can combine to yield unprecedented growth of incomes, employment and wealth.”
Year: 2005-06 | Rural infrastructure
Launch of a business plan for rural infrastructure, among others. “Bharat Nirman ... has to be implemented over a period of four years, for building infrastructure, especially in rural India. It will have six components, namely, irrigation, roads, water supply, housing, rural electrification and rural telecom connectivity.”
Year: 2008-09 | Debt relief
A massive agricultural debt waiver scheme was a prominent talking point. “Government is conscious of the dimensions of the problem and is sensitive to the difficulties of the farming community ... government estimates that about three crore small and marginal farmers and about one crore other farmers will benefit from the scheme.”
Phase 5: Modern Era: Aspirational India
Year: 2014-15 | Smart Cities & Skill India
“One hundred Smart Cities” and “Skill India” to focus on employability and entrepreneurship. “For this it is proposed to launch a pan India programme ‘Digital India’ ... A National Rural Internet and Technology Mission for services in villages and schools, training in IT skills ... is also proposed.”
Year: 2016-17 | Doubling farmers’ income
A specific target was set to double the income of farmers by 2022. “Access to markets is critical for the income of farmers. The Government is implementing the Unified Agriculture Marketing Scheme which envisages a common e-market platform that will be deployed in selected 585 regulated wholesale markets.”
Year: 2017-18 | Digital economy & GST
“Digital economy” to increase speed and transparency. “Demonetisation has strong potential to generate long-term benefits in terms of reduced corruption, greater digitisation of the economy ... We firmly believe that demonetisation and GST ... will have an epoch making impact on our economy.”
Year: 2021-22 | Health & wellbeing
Following the pandemic, the budget rested on 6 pillars, with ‘health and wellbeing’ as the first. “So far, only three times has a Budget followed a contraction in the economy. All such contractions were as a result of situations typical to India. This time, the contraction in our economy is due to a global pandemic ...,”
Year: 2023-24 | Seven priorities
Seven priorities including Green Growth, Youth Power, and Financial Sector were established. “Our vision for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances ... To achieve this, Jan Bhagidari through Sabka Saath Sabka Prayas is essential ...”
Year: 2024-25 | New definitions
A focus on 4 major castes: ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). A new definition of GDP: ‘Governance, Development and Performance’. “We believe in empowering the poor. The earlier approach of tackling poverty through entitlements had resulted in very modest outcomes.”
