Budget news: A look at landmark Union Budget announcements in the past

From the introduction of wealth tax to economic liberalisation to privatisation, here is a look back at landmark Union Budgets

India Budget 2024: As Union Finance Minister Nirmala Sitharaman presents Modi 3.0’s Union Budget for FY25 in the Lok Sabha today, expectations are riding high on some major announcements aimed at providing relief for both the middle class and industry bodies.

The spate of high expectations from the Budget has a long history in post-independent India, with finance ministers announcing radical steps to tame the Indian economy's outliers.

Here’s a look at some of the significant announcements made in the Union Budgets since independence

Wealth tax in Union Budget 1957-58

Finance Minister TT Krishnamachari's 1957-58 Budget introduced transformative tax policies, including the introduction of wealth tax. This tax was applied to the total value of personal assets and remained part of the Indian tax system in various forms until it was abolished in 2015 due to high administrative costs, increased litigation, and low revenue yield.

 

The 'Black Budget' 1973-74

In the lead-up to the Emergency, Yashwantrao B Chavan presented the 1973-74 Budget under Indira Gandhi's government, which was dubbed the Black Budget due to a high fiscal deficit of Rs 550 crore. The country was experiencing severe financial difficulties during this period.

Carrot and stick Budget 1986-87: The end of Licence Raj

The 1986 Union Budget, presented by Finance Minister VP Singh, was known as the ‘Carrot & Stick’ Budget because it marked the beginning of dismantling the Licence Raj in India. The government introduced the Modified Value Added Tax (MODVAT) credit to reduce the cascading effect of taxes while also launching a crackdown on smugglers, black marketers, and tax evaders.

Economic liberalisation in Budget 1991-92

Under Finance Minister Manmohan Singh, India embarked on significant economic reforms to liberalise the economy. This Budget marked the end of the Licence Raj, reduced import tariffs, and welcomed foreign investments, fundamentally transforming India's economic framework. Known as the ‘Epochal Budget,’ it was presented during a period of economic crisis, with significant reductions in customs duty and measures to promote exports.

Dream Budget 1998-99

In 1998, Finance Minister P Chidambaram presented a Budget that included notable tax cuts, reducing the maximum marginal income rate for individuals from 40 per cent to 30 per cent and for domestic companies to 35 per cent. This was intended to stimulate economic growth and enhance compliance. The government also introduced a voluntary income disclosure scheme to recover black money and reduced customs duty to 40 per cent.

End of Railway Budget 2017-18

Arun Jaitley's 2017-18 Budget marked a historic change by combining the Union Budget and Railway Budget presentations, ending a 92-year tradition. As Finance Minister, Jaitley streamlined the process with a unified Budget, now the standard practice.

Once-in-a-century Budget, 2021-22

Finance Minister Nirmala Sitharaman’s 2021 Budget is often referred to as the ‘once-in-a-century Budget’ due to its strong emphasis on privatisation, increased tax collections, and substantial investments in infrastructure and healthcare. The Budget included significant plans for privatising several public sector undertakings (PSUs), including Air India, BPCL, and LIC, signalling a major shift in the government's strategy for managing state-owned enterprises.