Union Budget 2026: Historic Budgets That Transformed India’s Financial Landscape

The Union Budget of India is far more than an annual financial statement. It serves as a strategic roadmap for economic growth, guiding the country’s progress and reinforcing its aspirations on the global stage. By outlining policy priorities, the Budget sends crucial signals to citizens, investors, and businesses, shaping long-term economic outcomes and aligning national ambitions with fiscal planning.

Union Budget 2026 is widely expected to prioritise investments in artificial intelligence, infrastructure development, defence preparedness, and measures to support consumption, reflecting India’s evolving economic and strategic needs. In this read, we will look at thehistoric budget in Indian history

1957: Introduction of Wealth Tax

The Union Budget for 1957–58, presented by T.T. Krishnamachari, marked the introduction of wealth tax for the first time in India. To reduce income inequality and expand the tax base, this move broadened the government’s fiscal instruments. Wealth tax remained a part of India’s tax framework until it was abolished in 2015.

1973: The ‘Black Budget’

Presented by Yashwantrao Chavan, the 1973 Budget earned the moniker “Black Budget” as it reflected the country’s severe economic distress. India faced soaring oil prices, food shortages, and a fiscal deficit of ₹550 crore, then considered alarmingly high. The Budget exposed the fragile state of government finances during a turbulent period.

1986: The ‘Carrot and Stick’ Budget

The 1986 Budget, delivered by V.P. Singh, marked an early shift away from the rigid Licence Raj system. Known as the “Carrot and Stick” Budget, it combined incentives for compliance with strict penalties for tax evasion, black marketing, and smuggling. A key reform was the introduction of MODVAT, which reduced the cascading effect of indirect taxes on consumers and businesses.

1991: Manmohan Singh’s Budget

Regarded as one of the most transformative Budgets in India’s history, the 1991 Union Budget was presented by Dr Manmohan Singh amid a severe balance-of-payments crisis and dwindling foreign exchange reserves. The Budget initiated sweeping reforms that dismantled industrial licensing, deregulated sectors, and opened the economy to foreign investment. This era-defining shift towards liberalisation, privatisation, and globalisation fundamentally altered India’s economic trajectory and global standing.

1997: P. Chidambaram’s ‘Dream Budget’

The 1997 Dream Budget, presented by P. Chidambaram, brought a comprehensive overhaul of India’s tax system. By simplifying tax structures and sharply reducing personal and corporate tax rates, the Budget sought to stimulate investment and modernise fiscal policy. It remains a landmark moment that made India more growth-oriented and investor-friendly.

Also Read: Budget 2026: Centre Invites Public Suggestions Through MyGov Platform

2025: Nirmala Sitharaman’s Consumption-Boosting Reforms

Union Finance Minister Nirmala Sitharaman delivered a defining moment with Budget 2025. At a time of slowing consumption, the government introduced sweeping income tax reforms under the New Tax Regime.

Taxpayers earning up to ₹12 lakh annually were exempted from income tax, while salaried individuals benefited up to ₹12.75 lakh, following an increase in the standard deduction to ₹75,000. These measures significantly boosted disposable income, delivering an immediate lift to household spending and revitalising consumer demand.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.