Every year on 1 February, when the eyes of the nation turn to Parliament House and the Finance Minister reads the budget speech, very few people know when the budget tradition started in India and how historic and challenging its first chapter was. Today, when the expectations regarding the General Budget 2026 are at their peak, it is interesting to know that the country’s first budget was presented at a time when India was trying to recover from the wounds after independence.
The first budget in India was presented on 7 April 1860 during the British rule. At that time the Finance Minister of India, James Wilson, had kept this budget. This budget was prepared keeping in mind the economic needs of the colonial rule and not the interests of common Indians. But the real historical turning point came when the country became independent and the first Union Budget of independent India was presented.
First budget of independent India
The first budget of independent India was presented on 26 November 1947 by the then Finance Minister Sir R.K. Presented by Shanmukham Chetty. This budget came at a time when the country was facing the tragedy of partition and there was an atmosphere of riots, displacement and economic uncertainty all around. This budget was not made for the entire year, but only for a period of seven and a half months, as the new financial year was to begin from 1 April 1948.
One currency, two countries
A shocking fact related to this first budget is that it was decided that both India and Pakistan would use the same currency till September 1948. At that time, the economies of both the countries were deeply interconnected and it was certain to take time for complete separation.
first budget figures
In this budget, the total estimated income of independent India was kept at Rs 171.15 crore, while the fiscal deficit was Rs 204.59 crore. Despite limited resources and extraordinary circumstances, the government tried to lay the foundation for administration, rehabilitation and development.
Change in Finance Minister
Later Sir R.K. Shanmukham Chetty resigned from the post of Finance Minister and John Mathai took charge in his place. John Mathai presented the budgets for 1949–50 and 1950–51. The special thing is that the budget of 1949-50 was the first budget which was prepared for a united India by including all the princely states.
lessons related to today
Today, when there is talk of tax relief, employment and development in Budget 2026, the story of the country’s first budget reminds us of how India’s economic journey started with difficult circumstances and how today’s strong economy stands on the same foundation.
Latest Business News