India’s Union Budget is the government’s yearly financial plan that shows how much money it expects to earn and spend from April 1 to March 31. Think of it like your monthly salary and expense list—it helps run the country smoothly by funding schools, roads, jobs, and defense.
Budget Basics
The Union Budget, mandated by Article 112 of the Indian Constitution, is presented by the Finance Minister in Parliament. It covers estimated revenues like taxes (income tax, GST) and borrowings, plus expenditures on welfare, infrastructure, and salaries. Divided into revenue budget (daily operations) and capital budget (long-term assets like highways), it aims for economic growth and low inflation
Key parts include:
- Revenue Receipts: Taxes and fees (e.g., 22% from income tax).
- Capital Receipts: Loans and asset sales.
- Revenue Expenditure: Salaries, subsidies, interest payments.
- Capital Expenditure: Infra projects like railways.
History Overview
India’s budget tradition started in 1769 under British rule with the East India Company managing regional finances. Post-1858, the British Government took over, presenting the first full budget in 1860 by James Wilson. Independence in 1947 marked modern budgets; R.K. Shanmukham Chetty presented the first on November 26, 1947.
Milestones:
- 1950: First post-independence Parliament budget by John Mathai.
- 1970s-80s: Focus on five-year plans amid crises.
- 1991: Liberalization by Manmohan Singh transformed it into growth-focused.
- 2017: Merged Rail Budget into Union Budget; presentation shifted to Feb 1.
- Now: Digital, with live streams and apps for public access.
Presentation Process
The Finance Minister reads the budget speech in Lok Sabha on February 1 (since 2017), detailing policies, tax changes, and allocations. Parliament discusses (general debate, voting on demands), passes Appropriation Bill (spending approval) and Finance Bill (taxes) by March 31. President signs it into law; halwa ceremony kicks off pre-budget prep in secrecy.
Importance
Budget shapes your wallet—tax slabs affect salaries, allocations boost jobs in agriculture (e.g., PM Kisan) or MSMEs. It targets a fiscal deficit (e.g., 4.4% in 2026) to control debt and inflation. For Assam folks like content creators, it funds education, digital India, and local schemes, impacting APSC jobs and cultural programs.
Types Explained
- Surplus: Earnings > spending (rare, builds reserves).
- Deficit: Spending > earnings (funded by borrowing; 2026 at 4.4%).
- Balanced: Equal (ideal but uncommon).
| Budget Type | Meaning | Example Impact |
| Surplus | Extra money saved | Lower future taxes |
| Deficit | Borrow to spend | Funds infra like roads |
| Balanced | Matches perfectly | Stable economy |
This plan drives “Viksit Bharat” by 2047, balancing growth with welfare in simple, people-first steps.
Also See: Who is Bir Chilarai? How did he help rebuilt the Kamakhya Temple?
