The First Financial Budget After India’s Independence: A Historic Milestone

India’s first financial budget was presented on 26th November 1947, just three months after gaining independence. The responsibility of presenting this landmark budget fell to R. K. Shanmukham Chetty, the first Finance Minister of independent India. This budget laid the foundation for the nation’s economic planning and development.

Highlights of the Budget

1. Revenue and Expenditure:
   • The total estimated revenue was ₹39.27 crore.
   • The total expenditure stood at ₹24.59 crore.
   • This left a revenue surplus of ₹14.68 crore, a positive start for the newly independent country.
2. Focus Areas:
   • Emphasis on rehabilitation of refugees post-partition.
   • Strengthening of infrastructure for economic growth.
   • Allocation for defense and internal security.
3. Challenges Addressed:
   • Managing the economic impact of partition.
   • Building a financial system for a newly formed nation.

Legacy of the First Budget

The first budget symbolized hope and determination to build a self-reliant India. It marked the beginning of financial planning, which later evolved into India’s Five-Year Plans. This historic step paved the way for modern economic policies.

India has since made significant progress, but the first budget remains a testament to the country’s resilience and ambition in the face of challenges.

Comparing the First Budget and the Latest Budget (2024)

1. Revenue and Expenditure:
   • The first budget estimated revenue at ₹39.27 crore and expenditure at ₹24.59 crore, with a surplus of ₹14.68 crore. In contrast, the latest budget runs into several lakh crores, reflecting the massive growth in the economy and government spending over the decades.
2. Focus Areas:
   • The first budget prioritized rehabilitation and infrastructure building, while the latest budget focuses on modern priorities like technology, sustainability, and digital transformation.
3. Economic Context:
   • The first budget dealt with the immediate challenges of partition and independence, whereas the latest budget addresses global challenges, economic reforms, and long-term growth strategies.

“The secret of getting ahead is getting started.” – Mark Twain