Key Facts about Union Budget of India

The Union Budget of India is an annual financial statement presented by the government to outline its revenue and expenditure for the upcoming fiscal year. It’s a crucial document that reflects the government’s economic policies and priorities.² Here are some key facts about it:

Historical Significance:

First Budget: India’s first budget was presented in 1860 by James Wilson, a Scottish economist and politician.
Independent India’s First Budget: R. K. Shanmukham Chetty presented the first budget of independent India on November 26, 1947.³

Presentation and Timing:

Presentation: The Finance Minister presents the Union Budget to the Parliament, typically on the first day of February.
Timing Change: Until 1999, the budget was presented at 5 pm on the last working day of February. This was changed to 11 am by Yashwant Sinha.
Date Change: In 2017, the budget presentation was shifted to February 1st to allow more time for budget planning and implementation.

Key Components:

Revenue: The budget estimates the government’s income from various sources like taxes, duties, and other receipts.
Expenditure: It outlines the planned spending on different sectors, ministries, and schemes.
Fiscal Deficit: The difference between the government’s revenue and expenditure is a key indicator of the budget’s impact.
Economic Survey: Presented a day before the budget, the Economic Survey provides an overview of the state of the economy and suggests policy measures.

Budget Process:

Preparation: The budget preparation involves extensive consultations with various ministries, departments, and stakeholders.
Parliamentary Approval: The budget undergoes scrutiny and debate in the Parliament before it is approved.
Implementation: After approval, the budget is implemented by the government through the fiscal year.

Interesting Facts:

Longest Budget Speech: Nirmala Sitharaman holds the record for the longest budget speech, delivered in 2020, lasting 2 hours and 42 minutes.
Shortest Budget Speech: Hirubhai Mulljibhai Patel delivered the shortest budget speech in 1977, consisting of only 800 words.
Paperless Budget: In 2021, the budget was presented in a paperless format for the first time, due to the COVID-19 pandemic.

The Union Budget is a comprehensive financial statement that plays a significant role in shaping India’s economy. It is essential for citizens to understand the key aspects of the budget to participate in discussions about the country’s economic policies and priorities.