'A Rare Privilege': How RK Shanmukham Chetty Presented Independent India's First Union Budget?

Finance Minister Nirmala Sitharaman is set to present the Budget on February 1. It will consist of expenditures, fiscal positions, projects, growth infrastructure and many others for the upcoming fiscal year. Budget 2022 will be a doorway to India's future in the post-pandemic era.

As the country completes 75 years of independence, the Union Budget has shaped India's financial and economic domain in the past. The road to becoming the fastest-growing economy has been challenging, with numerous hurdles in its wake.

In light of this, it is imperative to take a trip down memory lane and look into independent India's first-ever Union Budget presented in 1947.

'Rare Privilege'

The country's first Union Budget was presented on November 26, 1947, three months after India broke itself out of the British empire's shackles. It was presented by the then finance minister, RK Shanmukham Chetty. NDTV quotes his first words, "I rise to present the first Budget of a free and independent India. This occasion may well be considered as a historical one, and I count it as a rare privilege that it has fallen to me to be the Finance Minister to present this budget."

Chetty entered the Parliament and wore a dark pinstripe suit with a tie and white shirt. He carried a leather briefcase and exuded confidence when presenting the independent country's first Union Budget. Two autonomous governments emerged with the country's partitions in Delhi and Islamabad, respectively.

Expenditure And Fiscal Deficit

The statement covered a period of around seven-and-a-half months from August 1947 to March 1948. It had total revenue of ₹ 171.15 crores and the year's total expenditure was Rs 197.29 crores. Also, the fiscal deficit amounted to ₹ 26.24 at that time. Around ₹ 92.74 crores were allocated out of the total money for the defence services.

The Hindu quotes, "It has also been agreed that till the end of September 1948, the two countries will remain under a common currency system, although from April 1, Pakistan will have its coin." In terms of capital outlay, Rs 56.59 crores were allocated, and around ₹ 20.39 crores were kept for various grants to provinces.

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