Budget 2026: The Union Budget of India is not just a mere document — it is a blueprint for the country’s economic growth and helps the nation achieve its path to excellence in the global stage. The Budget also signals policy direction to citizens, investors and businesses to chart a map for long-term gains, furthering India’s economic goals.
Union Budget 2026 is expected to focus on AI, infrastructure, defence and support for spending.
The first Budget of independent India was delivered by RK Shanmukham Chetty on 26 November, 1947, laying the foundation for India’s fiscal policy. Over the years, finance ministers of India have delivered some of the most historic budgets that have reshaped the country’s economic landscape. Here is a list of five such budgets that are considered key in strengthening India’s financial situation.
Introducing wealth tax (Budget 1957)
The Union Budget presented in 1957-58 by then Finance Minister TT Krishnamachari introduced the wealth tax for the first time in India’s history. This was done with an aim to reduce inequality and broaden the tax base. With the 1858 Budget, the government expanded its fiscal toolkit. It remained part of India’s tax law until it was abolished in 2015.
Black Budget (1973)
The 1973 Budget presented by Yashwantrao Chavan came to be known as the ‘Black Budget’, and was presented at a time when India was undergoing an economic crisis. That year, the limit of government finances came into light with a large fiscal deficit of ₹550 crore, rising oil prices, and food shortages.
Carrot and Stick Budget (1986)
Budget 1986, presented on 28 February that year by VP Singh under the Congress government was the first step towards abolishing License Raj in India. The Budget, which provided both incentives and punishments, was dubbed the “Carrot and Stick” Budget as it came down heavily on tax evaders black marketers, and smugglers. This Budget also implemented the MODVAT (Modified Value Added Tax) credit to bring down the cascading tax impact on consumers.
Manmohan Singh’s Epochal Budget (1991)
One of the most important Budgets in India’s history, the 1991 Union Budget was presented by Dr Manmohan Singh when he was the Finance Minister of the country. India was struggling with a balance of payments crisis and low foreign exchange reserves and the government introduced major reforms to overcome the situation. The Epochal Budget, as it is now dubbed, ushered an era of liberalisation, privatisation, and globalisation by removing restrictive licenses, deregulating industries and opening up the Indian economy to foreign investments. The aim was to move India from a state-controlled economy to a more competitive and open one. The changes boosted India’s economic growth, brought in foreign capital and changed India’s position in the global economy.
P Chidambaram’s Dream Budget (1997)
The Dream Budget of 1997 was presented by P Chidambaram, one of the most famous Finance Ministers of India. In this Budget, Chidambaram overhauled India’s tax system by simplifying it, reducing income tax and corporate tax. The Dream Budget aimed to boost investment, modernise fiscal policies, and make India’s tax system more competitive. It is still remembered as the Budget that made India more growth-oriented and investor-friendly.
Nirmala Sitharaman and her income tax reforms in Budget 2025
Union Finance Minister Nirmala Sitharaman already has quite a few Budget records up her sleeve, like presenting the most consecutive Budgets ever and making the longest Budget speech. However, her 2025 Budget will definitely go down in history as one of the most important Budgets that reshaped India’s consumption. At a time when India’s consumption was going down, Sitharaman came in right on time with her Budget that benefitted millions of taxpayers — especially the middle class. The FM introduced new tax slabs, and lowered income tax liabilities under the New Tax Regime. Taxpayers earning up to ₹12 lakh per year were required to pay zero taxes now, while the limit increased to ₹12.75 lakh for salaried people as standard deduction was increased to ₹75,000. This gave almost instant results, boosting consumption as taxpayers were now getting more money in hand.
