Union Budget 2023-24: Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24 on February 1 present. There will be many new reforms and taxes which will be implemented after that. But there are been many significant budgets in the history of India. Here are the top five budgets you should know about:
1991 Budget: Budget 1991 began the process of economic liberalisation in India. The Budget came in the backdrop of a Balance of Payments crisis which threatened to bankrupt India. The Budget introduced several changes in import-export policy, reduced import licensing and promoted exports. The budget encouraged foreign investment into Indian industry and laid the foundation for Indian companies to face global competition.
1997 Budget: Finance Minister P Chidambaram’s first Budget was noted for its bold reforms amid the political uncertainty around the ruling United Front government. The maximum marginal income tax rate was reduced to 30 per cent from 40 per cent. Taxes on domestic and foreign companies were reduced from 40 per cent and 55 per cent to 35 per cent and 48 per cent respectively. The surcharge on corporate tax was also abolished. 2.
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1986 Budget: The Union Budget 1986 was presented by VP Singh is considered the starting point for reforms in India’s indirect taxation. He introduced MODVAT (Modified Value Added Tax) scheme which allowed the manufacturer to obtain instant and complete reimbursement of the excise duty paid on the components and raw materials. The new tax was also intended to help manufacturers avoid double taxation and tax burden.
1957 Budget: Union Budget 1957 was by TT Krishnamachari and is known for introducing several taxes, especially the wealth tax, which remained in force till 2016. The wealth tax was introduced to curb the possibility of evasion. The Budget also imposed restrictions on imports through an import licensing system in a bid to improve the country’s balance of payment situation.
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1970 Budget: The Union Budget 1970 was presented by the then Prime Minister Indira Gandhi. The 1970 Budget is now known for increasing the tax burden. That year, the Budget increased the marginal tax rate by 11 percentage points to 93.5 per cent on all incomes above Rs 2 lakh.
