Union Budget 2026: From survival to scale - Iconic budgets that shaped India’s economy

The Union Budget is more than an annual account of revenues and expenditures; it is a policy document that captures India’s economic priorities and vision at a given moment in time. From managing crises and correcting structural flaws to enabling reforms and future-ready growth, successive budgets have played a decisive role in shaping the country’s economic trajectory.

A few landmark Union Budgets stand out for the way they responded to their historical context and altered India’s economic direction, together tracing the nation’s journey from post-Independence nation-building to a modern, reform-driven economy.

Nation-building and crisis management (1947–1973)

India’s earliest Union Budgets reflected the challenges of a newly independent nation finding its footing. The first Budget of 1947 prioritised stability, defence, and administration to support governance in a fragile economy.

Years later, the 1973 “Black Budget” responded to inflation, fiscal stress, and global shocks, reinforcing the government’s role in managing economic crises and safeguarding strategic sectors.

Correcting the system and opening the economy (1986–1991)

By the mid-1980s, the focus shifted toward fixing structural inefficiencies. The 1986 “Carrot and Stick” Budget introduced reforms, such as MODVAT (Modified Value Added Tax), to reduce tax distortions and improve compliance. This reformist phase reached its turning point with the 1991 Liberalisation Budget, which dismantled regulatory controls, encouraged private enterprise, and opened India to global trade and investment.

Riding the technology and reform wave (2000–2017)

As India entered the new millennium, Union Budgets began aligning with emerging growth drivers. The 2000 Millennium Budget recognised technology and services as key engines of growth, promoting digital adoption through lower duties on IT equipment. This reform momentum continued with the 2017 GST-enabling Budget, which unified multiple indirect taxes into a single national framework, transforming business operations across India.

Building for the future (2020 and Beyond)

Recent budgets have focused on long-term structural transformation. The 2020 Union Budget introduced an optional new personal income tax regime while placing strong emphasis on infrastructure development and regional connectivity.

Together, these landmark budgets trace India’s journey from post-Independence survival to reform, innovation, and scale, highlighting the enduring role of the Union Budget in shaping the country’s economic future.