As India awaits the interim budget presentation on February 1, 2024, by Finance Minister Nirmala Sitharaman, it’s worth reflecting on the historical significance of budget presentations. The upcoming budget marks the interim budget of the Modi government’s second term, generating excitement and anticipation across the nation. Let’s delve into the global history of budget presentations and India’s initiation into this financial tradition.
1. Beginnings in England
- The tradition of presenting budgets began in England.
- However, India witnessed its first budget presentation on April 7, 1860, when James Wilson, a member of the Indian Council of Finance, presented the inaugural budget.
2. India’s First Budget Post-Independence
- Following India’s independence from British rule, the first budget post-independence was presented on November 26, 1947.
- Finance Minister R.K. Shanmukham Chetty took the helm and initiated India’s independent budgetary journey.
3. R.K. Shanmukham Chetty’s Legacy
- R.K. Shanmukham Chetty, a significant figure in India’s financial landscape, hailed from a family involved in making and selling topis (hats).
- Despite his humble background, he rose to prominence as a key figure in shaping India’s economic policies.
4. Attire and Presentation
- On the day of presenting the first budget post-independence, R.K. Shanmukham Chetty wore a black suit with a tie and a white shirt.
- His hands held a briefcase, symbolizing the historical occasion.
5. Etymology of ‘Budget’
- The term ‘budget’ has its origins in the French language, derived from the word ‘Bougeette.‘
- Translated, it means a leather briefcase.
As Finance Minister Nirmala Sitharaman prepares to present the interim budget for the second term of the Modi government, it’s essential to appreciate the historical journey of budget presentations. From England’s initiation of this financial tradition to India’s post-independence budgetary milestones, each presentation is a chapter in the nation’s economic history. The evolution from James Wilson’s budget in 1860 to R.K. Shanmukham Chetty’s historic presentation in 1947 reflects India’s growth and commitment to fiscal transparency. As citizens eagerly await the budget, it remains a testament to the enduring legacy of financial stewardship in the nation’s governance.
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