The Union Budget of India is an important annual document presented by the government, detailing how the country plans to manage its finances for the upcoming year. It outlines the expected revenues and expenditures, helping shape the nation’s economic policies and priorities. The budget plays a vital role in deciding how resources will be allocated to critical areas such as education, healthcare, infrastructure, defence, and social welfare, all of which are essential for the country’s growth and development.

The Union Budget for 2025-26 will be presented by Finance Minister Nirmala Sitharaman in Parliament on February 1.

James Wilson was sent to Queen Victoria to India to reform the financial system to establish a tax structure and introduce a new paper currency following the failed rebellion. One of his major contributions was the introduction of income tax which remains a vital source of government revenue today.

The British government had considered introducing direct taxes but wasn’t sure how to implement them. Further, they also had a plan for a poorly designed license tax. When James Wilson arrived, he scrapped this idea and introduced two clear measures: an income tax and an updated license tax. In his financial statement, he made it clear that those earning less than Rs 200 a year would not have to pay taxes.

James Wilson also set up an appropriation audit based on the English system to monitor monthly spending. With the goal of tackling India’s financial challenges after the revolt, he made notable contributions in a short time.

The first Union Budget of independent India was presented on November 26, 1947, by RK Shanmukham Chetty, who was the country’s first Finance Minister. Since 2019, Nirmala Sitharaman has been presenting the Union Budget, and this will be her eighth consecutive one.

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