1947:
First Budget of Independent India
R.K.
Shanmukham Chetty – India’s first finance minister, presented the budget on November
26, 1947. The budget was estimated for total revenue of 171.15 Cr of which 15.
Cr was to be contributed by posts and telegraphs department. The total
expenditure was estimated at 197.39 Cr of which 92.74 Cr was to be appropriated
to defense. Increasing export duty of 3% on cotton yarn was the only tax
preposition made during this budget.
1951:
First Budget of Republic India
John
Mathai – Finance Minister in the Congress Government, presented the budget on
February 28, 1950. This budget acted as pathway for the Planning Commission
which was responsible for phasing out budgets with efficient allocation of
resources. Post-independence India experienced high inflation, increased cost
of capital, low level of savings and thus low level of production and
investment. The Commission had to make decisions regarding the areas requiring
greater attention. Explanatory Memorandum was accompanied with the “White
Paper”. This budget reduced the maximum tax rate from 30% to 25%. The tax rate
for income greater than 1.21 lakh was 8.5 annas per rupee and maximum tax rate
was 78% approximately.
1957:
The Krishnamachari-Kaldor Budget
Tiruvellor
Thattai Krishnamachari – Minister of Finance in the congress Government,
presented the budget on May 15, 1957. The highlights of this budget were
restrictions on import licensing, curtailing budgets for non-core projects,
introduction of wealth tax, and increase in excise up to 400%. This was done to
ease pressure on BOP and forex reserves caused by high imports.
1968:
People centric budget
Morarji
Ranchhodji Desai – Deputy Prime Minister and Minister of Finance in the
Congress Government, presented the budget on February 29, 1968. This budget
scrapped the stamping and assessment by the Excise Department with a view to
curb its administrative burden as well as discretionary powers with its
officers. Self-removal of goods was a major relaxation which boosted
manufacturing.
1973:
The Black Budget
Yashwantrao
B Chavan – Minister of Finance in Congress Government, presented the budget on
February 28, 1973. It reserved Rs. 56 Cr for nationalization of general insurance
companies, Indian Copper Corp and Coal mines. The total budget deficit for the
year 1973-74 was Rs. 550 Cr. This was mainly done with a view to ensure
constant supply of coal to cater to the increasing demand in industries like
power, cement and steel.
1986:
The Carrot and Stick Budget
V.P.
Singh – Minister of finance in the Congress Government, presented the budget on
February 28, 1986. This was the first budget where MODVAT credit was allowed
where set off of duty paid on raw materials was allowed against final products
to reduce cascading effect of taxes on the final price of the goods. This
budget slowly saw dismantling of the license raj as it proposed to set up Unit
Trust of India’s mutual fund and Mahanagar Telephone Nigam Ltd for Delhi and
Mumbai.
1987:
The Gandhi Budget
Rajiv
Gandhi- Prime Minister of Congress Government presented the budget on February
28, 1987. This budget introduced provisions related to minimum corporate tax
i.e. Minimum Alternate Tax with an objective of bringing the highly profitable
companies under the tax purview. The expected tax collection through this was
75 crore but it was deemed to be a major source of revenue since.
1991:
The Epochal Budget
Manmohan
Singh- Finance Minister in the Narasima Rao Government presented the budget on
July 24, 1991. As the year 1991 represented the LPG era, this budget also went
for vigorously promoting the exports. It slashed import licensing exposing
India to international trade. The customs was brought down from 220% to 150%.
1997:
The Dream budget
Palaniappan
Chidambaram- Finance Minister in the United Front Government presented the
budget on February 28, 1997. This budget allowed companies to adjust MAT paid
earlier against subsequent tax liability and made moderate tax rate slabs for
companies as well as individuals. It also launched Voluntary Disclosure of Income
Scheme to bring back the black money.
2000:
The Millennium Budget
Yashwant Sinha-
Finance Minister of NDA Government presented the budget on February 29, 2000.
In this budget Sinha made income from software exports tax free for three years
which intended to promote India as a major software development center in the
world. Also in this year transfer pricing regulations were introduced which
played a big role in prevention of erosion of tax base.Thank You
Regards
Kautilya
IBS Mumbai
Comments
Post a Comment