We have come a long way since Independence

'The Finance Minister devoted a lot of time to explaining the difficult balance of payments position and rapid depletion of foreign exchange reserves', says the author

As we step into the seventy fifth year after our independence, it is worthwhile taking a look at where we started.

The first Union Budget presented on November 26, 1947 by the Finance Minister RK Shanmugam Chetty of the Justice Party, envisaged total expenditure of Rs 197.39 crore and revenue of Rs 171.15 crore. The net deficit was Rs 16.24 crore but the Finance Minister said the deficit could be higher because the actual amount required for meeting the expenditure in connection with the relief and rehabilitation of refugees was still very uncertain.

The defence expenditure at Rs 92.74 crore took away