Budget 2026: From liberalisation to reform - The union budgets that made economic history

Finance Minister Nirmala Sitharaman is set to announce the Union Budget for 2026-27 on February 1, 2026. This is the first time since 2000 that a budget has been presented on a Sunday while markets also remain open. 

Not all Union Budgets are created equal. While most fine-tune policy, a few have fundamentally reshaped India’s economic direction. These landmark Budgets introduced reforms that continue to influence growth, markets, and everyday economic life.

1. 1991-92: The liberalisation budget

Presented by Finance Minister Manmohan Singh, this Budget marked India’s shift from a tightly controlled economy to a market-oriented one. It dismantled the licence raj, reduced import tariffs, devalued the rupee, and opened doors to foreign investment. The reforms laid the foundation for modern India’s growth story.

2. 1973-74: Tax reforms and redistribution

Finance Minister Y.B. Chavan’s Budget sought to reduce income inequality through steep progressive taxation. While controversial, it reshaped tax policy debates and expanded the role of the state in redistribution.

3. 1985-86: Technology and modernisation

Under V.P. Singh, this Budget lowered taxes on computers and software, encouraging technology adoption. It played a key role in nurturing India’s early IT ecosystem long before the sector became a global powerhouse.

4. 2008-09: The crisis management budget

Amid the global financial crisis, Finance Minister P. Chidambaram used expansionary fiscal policy to stimulate demand. Increased public spending, tax relief, and social sector support helped India weather the global slowdown better than many economies.

5. 2017-18: Structural reset in budgeting

Presented by Arun Jaitley, this Budget merged the Railway Budget with the Union Budget and advanced the presentation date to February 1. These changes improved fiscal planning and signalled a more streamlined approach to public finance.

Why were these budgets important 

Each of these Budgets went beyond routine accounting. They responded to crises, embraced reform, or reimagined institutions. It significantly shaped India’s economic trajectory for decades and continues to do so.