Thread by @ICICI_Direct

Independent India has seen
🔶 73 annual budgets,
🔶 14 interim budgets and
🔶 4 special budgets or mini-budgets

Here are top 5 Iconic Budgets which shaped the economic future📈of India🇮🇳

A thread🧵👇

#BudgetKiBaatein #ICICIDirect

1. Budget, 1986 by Sh. V.P. Singh [Input Credit]

🔶 Input credit of Excise wasn't available to manufacturers till 1986

🔶 This led to cascading effect, i.e., 'Tax on Tax'

🔶 Introduced MODVAT: Allowed for this credit

🔶 Thereby, reducing end cost & increasing consumption

2. Budget, 1991 by Dr. Manmohan Singh [Liberalisation]

🔶 India had a Balance of Payment crisis having just 3 weeks’ worth of foreign reserves

🔶 Gold reserves were sold & emergency fund was raised from IMF

🔶 But after the Budget 1991, the country never looked back

Contd..👇

3-pronged strategy was initiated to put the economy back on track:

🔶Liberalisation: FDI was allowed in 34 sectors

FDI in India increased from $97 Mn in '91 to $81,722 Mn in '21

🔶Trade: Rupee depreciated by 20% to encourage exports

🔶Industrial: License Raj curtailed

3. Budget, 1997 by Sh. P. Chidambaram [Tax Relief]

🔶 Reckoned as 'Dream Budget' by Indian Media

🔶 Personal Tax slabs were expanded, std deduction was increased by up to 33%

🔶 Dividend tax at individual level was abolished

🔶 Corp Tax: Surcharge was abolished, rates reduced

4. Budget, 2000 by Sh Yashwant Sinha [Enabled IT Boom]

🔶 Budget theme promoted the:
👉 Telecom and
👉 Information Technology (IT) Industry

🔶 Custom Duty was slashed on:
👉 Computers,
👉 Semi-conductors,
👉 Various IT products

Tax break was introduced on export of TV software

5. Budget, 2021 by Smt. Nirmala Sitharaman [Infra]

🔶 Allocation of ₹5.54 Lakh Cr to enhance infra sector (up 34.5% YoY🔼)

👉 Set up Development Financial Institution to fund Infra sector
👉 Launched various Road & Rail projects
👉 Power, Ports, Metro, Bus projects announced

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TL;DR

5 Iconic Budgets of Independent India🇮🇳:

1. 1986 by Sh. V.P. Singh [Input Credit]
2. 1991 by Dr. Manmohan Singh [Liberalisation]
3. 1997 by Sh. P. Chidambaram [Tax Relief]
4. 2000 by Sh. Yashwant Sinha [Enabled IT Boom]
5. Budget, 2021 by Smt. Nirmala Sitharaman [Infra]

Do you think any other great budget we missed?

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