The Union Budget plays a vital role in India’s economic landscape, with its origins dating back to the colonial era. The Budget outlines the government’s financial plan, covering revenue, expenses, and fiscal policies. Over time, the Budget has undergone significant transformations, adapting to the country’s evolving economic needs and landscape.
Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2025-26 on February 1 in Parliament. With this, she will become the first finance minister of the country to present the Union Budget for the 8th consecutive time.
Let’s dive into history, when the first Indian Budget was presented by James Wilson.
Union Budget 2025: Who Presented The First Indian Budget?
India’s first Union Budget was presented by James Wilson, the finance member of the Indian Council and founder of The Economist, on April 7, 1860. Furthermore, the first Budget was introduced in response to the financial strain on the British administration after the 1857 movement of India’s Independence, during India’s period of British colonial rule.
After the 1857 rebellion, Queen Victoria sent James Wilson to India to overhaul its financial framework. Additionally, he implemented a tax system, introduced paper currency, and established income tax, which remains a crucial revenue source for the government.
As Sabyasachi Bhattacharya’s book ‘The Financial Foundation of The British Raj‘ notes, the government sought to introduce direct taxes but faced implementation challenges. Although they drafted a license tax bill, it lacked clear planning and organization.
According to media reports, upon his arrival in India, James Wilson replaced the existing bill with two new, more effective ones: the income tax and license tax. In his financial statement, Wilson said that individuals with an annual income below Rs 200 would be exempt from paying taxes.
As India’s first finance officer, James Wilson tackled the subcontinent’s financial woes after the rebellion. Furthermore, he introduced an appropriation audit, modeled after the English system, to track monthly expenditure accounts, ensuring greater financial transparency and accountability.
Wilson succumbed in Kolkata in August 1860, merely months after presenting India’s first budget.
