Know all about landmark budgets instrumental in transforming Indian Economy

The Union budget for the financial year 2016-2017 is all set to be presented on February 1 by Finance Minister Arun Jaitley. This year's Budget has greater significance as five states are going to polls plus Railway Budget will also be presented with the union budget for the first time.

There have been some landmark budgets which have shaped up the course of the Indian economy.

Landmark Budgets which transformed the Indian Economy

1. 1951: The first Budget of the Republic of India

Presented By: John Mathai, Finance minister in the Congress governmentPresented On: February 28, 1950

Highlights of the Budget: 

This budget laid down the roadmap for the creation of the Planning Commission. The Commission was entrusted with the responsibility of making phased plans for effective and balanced use of economic resources.

Rationale behind decision: 

The Indian economy was crippled by high inflation, increased cost of capital, low level of savings and thus low level of investment and production since independence. The Commission was to be instrumental in making assessments of available resources and identifying areas requiring greater attention.

2. 1957: The 'Krishnamachari-Kaldor' Budget

Presented By: Tiruvellore Thattai Krishnamachari, Minister of Finance in the Congress Government

Presented On: May 15, 1957

Highlights of the Budget: 

Severe restrictions on imports through an import licensing system

Withdrawal of  budgetary allocation for non-core projectsExport Risk Insurance Corp formed to protect exporters against payment risks. 

Introduction of wealth tax, a tax on expenditure and a tax on railway passenger fee. 

3. 1968: People-oriented Budget

Presented By: Morarji Ranchhodji Desai: Deputy Prime Minister and Minister of Finance in the Congress Government

Presented On: February 29, 1968

Highlights of the Budget: 

Put an end to the stamping and assessment by the Excise Department authorities of goods right at the factory gateIntroduction of a system of self-assessment by all big and small manufacturers.

Rationale behind decision:

To reduce administrative burden on the Excise Department and curb discretionary powers with its field officers.

4. 1973: The Black Budget

Presented By: Yashwantrao B. Chavan, Minister of Finance in the Indira Gandhi led Congress Government

Presented On: February 28, 1973

Highlights of Budget:  

Nationalisation of the general insurance companies, Indian Copper Corp and coal mines done with a corpus of Rs 56 crore.

Rationale behind decision: 

Uninterrupted supply of coal in line with the growing demand for coal in various industries like power, cement and steel was an absolute must at the time.It was also believed that the interest of mine workers would be best served in a government-run set-up.

5. 1986: The carrot & stick Budget

Presented By: V.P. Singh, Finance Minister Congress Govt

Presented On: February 28, 1986

Highlights of Budget: 

Introduced MODVAT credit. This allowed credit/ set-off of duty paid on raw materials against the duty on final products. 

Rationale behind decision: 

To reduce the effect of taxes on the final price of goods.

6. 1987: The Gandhi Budget

Presented By : Rajiv Gandhi, Prime Minister in the Congress government

Presented On: February 28, 1987

Highlights of Budget: 

Introduction of provisions related to minimum corporate tax, better known today as MAT or Minimum Alternate Tax.

Rationale behind decision: 

It was brought in with the primary objective of bringing highly profitable companies that were legally managing to avoid paying income tax into the tax regime 

7. 1991: The Liberalisation Budget

Presented By: Manmohan Singh, Finance Minister in the Narasimha Rao government

Presented On : July 24, 1991

Highlights of Budget:

Overhauled the import-export policy, slashed import licensing and went for vigorous export promotion and optimal import compression to expose Indian industry to competition from abroad. 

Began rationalisation of duty structures by pruning the peak customs duty from 220 per cent to 150 per cent.

Rationale behind decision: 

India had an adverse balance of payments and any further postponement of long overdue external debts would have been detrimental to the economy. It helped in the liberalisation of the Indian economy.

8. 1997: The dream Budget

Presented by: Palaniappan Chidambaram, Finance Minister in the United Front Government

Presented On: February 28, 1997

Highlights of Budget:

Tax rates made moderate for individuals as well as companies. Allowed companies to adjust MAT paid in earlier years against tax liability in subsequent years. Launched the Voluntary Disclosure of Income Scheme or VDIS, to bring out black money. Phased out ad hoc treasury bills used for financing the budget deficit.Rationale behind decision: 

A little over one per cent of the population had been for income tax so far. Budget aimed at wideneing the tax base. 

9. 2000: The Millennium Budget

Presented By: Yashwant Sinha, Finance Minister in the NDA Govt 

Presented On: February 29, 2000

Highlights of Budget:

Income from software exports made tax-free for three yearsExtension in tax holiday to perpetuity in Budget 1995.

Rationale behind decision: 

To improve the ratio of taxes to GDP or gross domestic product. To promote India as a major software development centre in the world.