INDIA BUDGET HISTORICAL FACTS

Government budget is a financial plan for the government of any country to define its expenditure of a usually fixed resource and sources of income during a financial year. Like for any other country, it it is the most important economic and financial event in India. The budget is usually anteceded by an economic survey which gives the general course for the budget and gives an outlook for the economic performance of the country. It also includes financial projection for the next fiscal year.

The Finance Minister of India presents the Union Budget of India on the last working day of February in the parliament. The Budget has to be passed by both the houses of the Parliament before it can come to effect on April 1st.The Union Budget is also known as the general budget.

The history of Indian budget is unique in its own sense and there are quite a few interesting facts related to it. Here are some of the interesting facts about Union Budget:

·         R K Shanmukham Shetty presented independent India`s first budget.

·         Till date, Morarji Desai has had the longest tenure as FM, 8 years.

·         Desai was FM for 5 years under Nehru and 3 under Indira Gandhi.

·         Morarji Desai presented two Budgets on his birthday  in 1964 and 1968.

·         CD Deshmukh was the first Indian Governor of RBI to have presented the Interim Budget for 195152.

·         Jaswant Singh was FM for 13 days.

·         During Jaswant Singh`s regime, Enron got counterguarantee.

·         Initially, budget papers were printed in Rashtrapati Bhavan. In 1950, budget papers were leaked. This changed the printing venue to Minto Road located security press.

·         Since 1980, budget papers are printed in North Block.

·         A week before the budget is presented, the employees of the press stay in the ministry and have no means of communicating with the outside world.

·         The Budget process has its roots in the Bombay Plan of 1944. Bombay Plan was authored by John Mathai, GD Birla & JRD Tata.

·         Revenue deficit is excess of revenue expenditure over revenue receipts.

·         Revenue expenditure doesn`t result in capital formation (subsidies, salaries).

·         Revenue receipts is money that Govt doesn`t have to return (duties,taxes).

·         The government can borrow from three sources. From the market, small saving deposits & from PSU banks.

·         The govt borrows from the market 3 to 4 times annually Plan Expenditure is the Budget allocation to fulfill 5yr Plan obligations.

·         Plan Expenditure creates new assets for economy.

·         Total Plan Expenditure in 5 yrs should match allocation for a 5yr Plan.

·         Total Plan expenditure in 5 years has always been lower than target .

·         The 1991-92 final and interim Budgets were presented by Finance Ministers of two different political parties. While Yashwant Sinha presented the interim budget, the final budget was presented by Manmohan Singh.

·         The 1965-66 budget contained the first disclosure scheme for black money.

·         Jawahar Lal Nehru was the first Prime Minister to present the budget when he held the Finance portfolio in 1958-59.

·         R Venkataraman was the only Finance Minister who later became the President of India.

·         Three interim budgets were presented in the 1990s. While Yashwant Sinha presented the interim Budgets for 199192 and 199899, Manmohan Singh presented the 199697 interim Budget.