Budget 2026: From Black Budget to Epochal Budget - A Look at India’s Most Iconic Budgets

As the Union Budget 2026 for the financial year 2026–27 is set to be presented in Parliament on Sunday, February 1, 2026, at 11 am, attention is once again on the role Budgets play in shaping India’s economic trajectory.

Over the decades, certain Union Budgets have stood out as defining moments introduced during crises, transitions or reform phases that altered the country’s fiscal and policy direction. From the “Black Budget” of the 1970s to epochal reform-driven Budgets, these landmark financial statements continue to influence how India approaches economic policymaking today.

One of the most infamous in India’s fiscal history was the “Black Budget” of 1973–74, presented by Yashwantrao B. Chavan. Plagued by rising oil prices, food shortages and a widening fiscal gap, this Budget earned its label because of an unprecedented fiscal deficit of ₹550 crore, underscoring the severity of the economic challenges of the time.

In 1986, the Union Budget delivered by V. P. Singh came to be known as the “Carrot and Stick Budget.” It combined incentives with stronger measures against tax evasion and introduced the MODVAT (Modified Value Added Tax) credit, a precursor to later indirect tax reforms, signalling early efforts to streamline taxation.

A defining moment in India’s economic evolution arrived with the 1991 “Epochal Budget” presented by Manmohan Singh. At a time when the country was grappling with a balance-of-payments crisis, this Budget ushered in sweeping liberalisation, privatisation and globalisation reforms, dismantling the licence raj, easing trade controls and opening the economy to foreign capital. These transformative steps reshaped India’s economy for decades to come.

In 1997, P. Chidambaram presented what came to be called the “Dream Budget.” Inspired by the Laffer Curve concept, it sharply reduced personal and corporate tax rates, simplified excise duties and restructured customs duties. These tax reforms were aimed at boosting investment, improving competitiveness and widening the tax base.

The “Millennium Budget” of 2000, introduced by Yashwant Sinha, focused on nurturing India’s burgeoning technology sector. Cutting customs duties on computers and related equipment and phasing out certain export incentives helped lay the groundwork for the country’s IT industry boom.

Budgets also reflect course corrections. In 2002–03, another Budget under Yashwant Sinha became known as the “Rollback Budget” as several proposals were withdrawn or scaled back following criticism, a reminder that fiscal plans often evolve in response to economic and political pressures.

More recently, the 2021 Union Budget presented by Nirmala Sitharaman was dubbed the “Once-in-a-Century Budget” for its ambitious focus on infrastructure, healthcare and privatisation in the wake of the pandemic. It emphasises a shift toward long-term growth strategies rather than short-term fixes.