Budget 2026: Who Introduced India’s Union Budget, From R.K. Shanmukham Chetty to Nirmala Sitharaman

Budget 2026: The Union Budget is the much-awaited annual achievement of India, influencing the country’s economic agenda, outlays, and financial policies. On February 1, 2026, Finance Minister Nirmala Sitharaman will deliver her ninth consecutive budget, nearing the record of ten budgets held by Morarji Desai, who achieved this remarkable record while being both the Prime Minister and Finance Minister of the country. However, this Budget is more than just a list of numbers and it has a rich historical background that dates back to over 160 years.

Who Introduced the Budget in India?

• The first budget in India was introduced on April 7, 1860 by James Wilson, a Scottish economist, during the British colonial period.
• This early budget was presented to the British Crown on behalf of the East India Company and laid the groundwork for structured fiscal governance in India.
• In Independent India, the first Union Budget was presented by R.K. Shanmukham Chetty on November 26, 1947, just months after partition.
• R.K. Shanmukham Chetty is an industrialist and former Diwan of Cochin State, was not affiliated with the Congress party but set traditions such as carrying the budget briefcase to Parliament.

Origins of the Budget Tradition

• The word “budget” comes from the French “bougette”, meaning leather pouch, referencing the traditional briefcase used to carry budget documents.
• This practice originated in the United Kingdom, where the Chancellor of the Exchequer carried a leather Gladstone bag.
• India adopted this ceremonial tradition and the finance minister continues to carry a briefcase while presenting the Budget, symbolizing fiscal responsibility.

First Unified Budget

The first budget covering all of India’s princely states and territories was presented by John Mathai in 1949-50. Mathai innovated by distributing papers instead of reading the Budget aloud, making it easier for Parliament members to access detailed figures. This marked the beginning of the modern and unified fiscal system for independent India.

History of the Union Budget

• Under colonial rule, the budget was a tool for the East India Company and later the British Crown to manage revenue and expenditure.
• After independence, the budget became a tool of economic planning and nation-building, addressing post-partition challenges such as refugee relief, currency arrangements with Pakistan and reconstruction.
• R.K. Shanmukham Chetty’s inaugural budget covered seven and a half months, followed by a new fiscal year starting April 1, 1948.

Record-Breaking Finance Ministers in Budget History

• Morarji Desai holds the record with 10 budgets presented between 1959 and 1969.
• P. Chidambaram has presented nine budgets, while Pranab Mukherjee has delivered eight.
• Other notable finance ministers with multiple presentations include Yashwantrao Chavan, Yashwant Sinha, CD Deshmukh, and Manmohan Singh.
• Sitharaman’s ninth consecutive budget in 2026 positions her among the most experienced presenters in India’s history.

When & Who was the Budget Formally Introduced in India

• 1860: James Wilson, under British rule.
• 1921: Annual budget presentations began in the Central Legislative Assembly.
• 1947: R.K. Shanmukham Chetty presented India’s first independent budget.
• 1949-50: John Mathai presented the first unified budget including all princely states.
• 2017–18: Arun Jaitley shifted the presentation date to February 1, standardizing the modern practice.