Union Budget 2026: A Lookback At Independent India's First Budget In 1947

As India gears up for Union Budget 2026, it is worth looking back at where it all began: The country's very first Budget after Independence in 1947. 

Like every year, people are looking for relief from inflation, possible tax cuts, and announcements that could ease the burden on households. But in 1947, the priorities were very different.

India's First Budget

India's first Budget was not presented after Independence but during British rule on April 7, 1860. This budget was presented by James Wilson, the finance member of the Indian Council. At the time, the objective of the Budget was less about public welfare and more about meeting the needs of the British administration.

First Budget After Independence

RK Shanmukham Chetty, the first finance minister, presented independent India's first Budget on November 26, 1947. It was an interim Budget.

The 2025-26 Budget projected an expenditure of Rs 50.65 lakh crore. Compared to today's budgets running into thousands of crores, Independent India's first budget was just Rs 171.15 crore.

Looking at the key figures of the first budget, the total expenditure was Rs 197.29 crore, and the fiscal deficit was Rs 26 crore. About half of the total expenditure was spent on defence alone.

Purpose of Independent India's first budget

India had just emerged from nearly 200 years of British rule and was struggling with the immediate challenges of Partition, including food shortages, economic consequences, and large-scale displacement. At that time, the government's focus was on protecting the interests of ordinary citizens.

"Whatever might be the immediate political justification of partition, its economic consequences must be fully appreciated if the two dominions are to safeguard the interests of the ordinary man in both new states," Chetty said at the time.