The Indian Budget, a pivotal economic document, is a meticulous financial plan unveiled annually by the government, outlining its revenue and expenditure for the fiscal year. Steeped in tradition and evolving with time, this budgetary exercise plays a crucial role in shaping the country’s economic trajectory. Originating from the post-independence era, it has grown to encompass various sectors, reflecting the dynamic needs of a burgeoning economy. From the merger of the Railway Budget to embracing digitalization, the Indian Budget adapts to modern complexities. More than a mere fiscal outline, it stands as a testament to India’s economic resilience and commitment to inclusive growth.
- Oldest Budget Tradition: The Indian budget is one of the oldest budgetary traditions in the world, with the first budget of independent India being presented by R.K. Shanmukham Chetty on November 26, 1947.
- Railway Budget Merger: Until 2016, India had a separate Railway Budget presented a day before the Union Budget. The practice was discontinued, and both budgets were merged to streamline the process.
- Budget Session Duration: The budget session in India typically starts in February and concludes in May. During this time, the government presents the budget and discusses its various aspects in both houses of Parliament.
- Longest Budget Speech: The longest budget speech in the history of India was delivered by P. Chidambaram in 1996, lasting for more than 2 hours and 13 minutes.
- Digital Transformation: In 2017, the Indian government took a significant step towards digitalization by doing away with the traditional ‘Budget Briefcase.’ Instead, the Finance Minister carried the budget speech in a four-fold red cloth, symbolizing the end of the British-era tradition.
- Gender Budgeting: India has been a pioneer in gender budgeting, allocating funds specifically for women-centric programs and schemes to address gender disparities and promote women’s empowerment.
- Economic Survey: The Economic Survey, presented just before the budget, provides an overview of the country’s economic performance. It serves as a precursor to the budget and gives insights into the government’s policy direction.
- Zero-Based Budgeting: The Indian budget follows a system of incremental budgeting, where the budget for each department is based on the previous year’s budget with certain modifications. This is different from zero-based budgeting, where each department’s budget starts from scratch.
- Budget Printing Tradition: The budget documents are traditionally printed in the basement of the North Block, and it is a closely guarded secret until it is presented in Parliament.
- Halwa Ceremony: Before the budget is presented, a unique tradition known as the “Halwa Ceremony” takes place. The Finance Minister participates in a ceremony where a sweet dish, usually halwa, is prepared and served to the entire finance ministry staff, symbolizing the beginning of the printing of budget documents, which are kept secret until the presentation.
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