Did you know? The story behind the first 'Black Budget': check interesting facts about Indian budget

Budget 2025: India's first 'Black Budget' was presented in February, 1973, by Finance Minister Yashwantrao Chavan, during Prime Minister Indira Gandhi¡¯s leadership. It got the nickname 'Black Budget' due to a huge fiscal deficit of Rs 550 crore, which was a major concern at the time. This reflected the tough economic conditions India faced after the 1971 Indo-Pak War and the creation of Bangladesh. The budget introduced key measures, like the nationalization of general insurance companies and coal mines, to tackle inflation and resource shortages. The term "Black Budget" not only highlighted the deficit but also an urgent need for economic reforms.

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"28th February, 1973
Dear Diary,

It¡¯s 1973, and the nation stands at a crossroads. The Union Budget reveals a staggering ?550 crore fiscal deficit¡ªthe largest in India¡¯s history. Some call it the "Black Budget," a reflection of the daunting challenges ahead. But beneath the¡­ pic.twitter.com/DkR9p8NoaI

¡ª Value Research (@ValueResearch) January 28, 2025

Did You Know? 10 Interesting Facts About the Indian Budget

The Indian budget is an important document that details the government's financial strategies for the upcoming fiscal year. In 1992, India was facing a serious economic crisis. However, Dr. Manmohan Singh, the Finance Minister at the time, introduced a groundbreaking budget that changed the country's future.

Here are ten interesting facts about the Indian budget, including its historical background and key changes over time:

Dr. Manmohan Singh presented the historic budget that changed India's destiny.

In 1992, India faced a severe economic crisis. But Dr. Manmohan Singh, the Finance Minister, had a vision of reform and growth. pic.twitter.com/DurGAu13f8

¡ª Asma (@asmatasleem13) July 10, 2023

1. First Budget Presentation

The first annual budget of independent India was presented by R.K. Shanmukham Chetty on February 28, 1948. This was just three months after the interim budget was introduced on November 26, 1947, to assess the country's financial situation post-independence.

2. Prime Ministers Presenting the Budget

Only three Prime Ministers have presented the Union Budget in India's history: Jawaharlal Nehru in 1958, Indira Gandhi in 1970, and Rajiv Gandhi in 1987. This highlights the significant role that prime ministers have played in shaping India's fiscal policies during critical times.

The 1991 budget placed our nation in the list of progressive economies when India made a historic decision that transformed the lives of billions.

Today, we remember this prominent step taken by Dr. Manmohan Singh & PM Rao for introducing economic reforms in India. pic.twitter.com/nTB6UYpVH4

¡ª Congress (@INCIndia) July 24, 2023

3. Longest and Shortest Budget Speeches

Nirmala Sitharaman holds the record for delivering the longest budget speech in India, lasting two hours and forty-two minutes during the 2020 budget presentation. In contrast, the shortest budget speech was delivered by Hirubhai Patel in 1977, comprising only 800 words.

#Budget2024 | Nirmala Sitharaman holds record for longest Budget speech in India, while Hirubhai Mulljibhai Patel holds record for shortest Budget speech.https://t.co/2QYi33pNvP

¡ª Mint (@livemint) February 1, 2024

4. Paperless Budget Revolution

In a historic move, India introduced a paperless budget for the first time in 2021. This initiative aimed to promote sustainability and reduce paper waste in government operations.

5. Change of Presentation Time

Traditionally, the Indian budget was presented at 5 PM to align with the British Parliament's schedule. However, this practice changed in 1999 when Finance Minister Yashwant Sinha presented it at 11 AM, marking a significant shift in tradition.

6. Budget Presentation Date Shift

In 2017, the date for presenting the Union Budget was moved from February 28 to February 1. This change was made to ensure that all parliamentary approvals for government spending were completed before the new financial year began on April 1.

7. Merging of Railway Budget

In a landmark decision in 2017, the Railway Budget was merged with the Union Budget for the first time. This change aimed to streamline financial management and enhance transparency in railway funding.

8. Black Budget Introduction

The term "Black Budget" refers to a budget that reveals a significant fiscal deficit or hidden expenditures. The first Black Budget was presented in India during Indira Gandhi's tenure in 1973, shocking many with its details of financial mismanagement.

9. Most Budgets Presented by a Finance Minister

Morarji Desai holds the record for presenting the most budgets as Finance Minister¡ªten times between 1962 and 1969. He is followed by P. Chidambaram with nine presentations and others like Pranab Mukherjee and Nirmala Sitharaman with eight each.

10. Focus on Economic Growth

The upcoming budget for 2025 is expected to emphasise economic growth and development initiatives, particularly aimed at boosting agriculture and infrastructure sectors. This aligns with India's vision of becoming a $7 trillion economy by 2030.

The Indian budget has a rich history, reflecting the country¡¯s economic challenges and growth over the years. From the first 'Black Budget' in 1973, which highlighted India's financial struggles, to the introduction of reforms like the nationalization of industries, the budget has played a crucial role in shaping the nation¡¯s economy.

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