Budget 2026: Who presented the first Union Budget of India and in which year?

India’s journey as an independent nation began in August 1947, and one of the earliest and most crucial steps in shaping its economic future was the presentation of its first Union Budget. Framed at a time of political transition, refugee rehabilitation, and economic uncertainty, the first budget of independent India set the tone for fiscal policymaking in a newly sovereign country. 

When was India’s first budget presented after Independence? 

India’s first Union Budget after Independence was presented on November 26, 1947, barely three months after the country became free from British rule. 

Unlike today’s annual budgets, this was a short-term budget, covering the period from August 15, 1947, to March 31, 1948, as the new government worked to stabilise finances during the transition. 

Who presented the first budget of independent India? 

The first budget of independent India was presented by RK Shanmukham Chetty, who served as India’s first Finance Minister. 

A respected economist and constitutional expert, Chetty faced the daunting task of managing a fragile economy marked by Partition-related disruption, food shortages, and limited foreign reserves. 

India’s first budget after Independence was presented before the Constitution came into effect on January 26, 1950. At the time, India was governed under interim constitutional arrangements while foundational institutions were still being built. 

This made the 1947 budget both symbolic and practical — it reflected India’s sovereignty while operating within a transitional legal framework. 

Why was the first Union Budget of independent India introduced? 

The first post-Independence budget was introduced to ensure financial continuity and stability during a period of unprecedented upheaval. Its primary objectives included: 

• Managing the economic impact of Partition and refugee rehabilitation 
• Maintaining continuity in revenue collection and public expenditure 
• Funding essential government services and defence 
• Laying the groundwork for long-term economic planning 

Rather than announcing sweeping reforms, the budget focused on stability, prudence, and administrative continuity. 

What are some lesser-known facts about India’s first post-Independence budget? 

• It was a mini or interim budget, not a full-year financial statement. 
• The budget did not introduce major new taxes, reflecting the government’s cautious approach. 
• R.K. Shanmukham Chetty resigned soon after, reportedly due to differences within the Cabinet. 
• The first full Union Budget of independent India was later presented in 1948 by John Mathai. 
• The early budgets laid the foundation for India’s later shift toward planned economic development, culminating in the First Five-Year Plan in 1951. 

India’s first budget after Independence was more than an accounting exercise. It was a statement of intent by a fledgling nation — focused on survival, stability, and the slow rebuilding of an economy emerging from colonial rule and national division.