Introduction

As India celebrated its Independence on August 15, 1947, the newly formed government faced the daunting task of formulating the first union budget. This budget played a pivotal role in shaping the economic framework of a newly independent nation. In this article, we will delve into the details of the first union budget of independent India, focusing on its budget allocation, expenditure, revenue, and more.

Overview of the First Union Budget (1947-48)

With the establishment of the combined government of independent India, the first union budget was presented for the financial year 1947-48. This budget aimed to address the immediate economic challenges and plan for the future development of the nation. The primary motto was to stabilize the economy and initiate the process of nation-building.

Budget Allocation

Let's break down the budget allocation of the first union budget of independent India.

Expenditure

The expenditure component of the first union budget was Rs. 197 crores. This amount was earmarked for various sectors under the government's purview. The key areas of expenditure included:

Defense Administrative expenses Infrastructure development Public health Education Social welfare programs

Essentially, the budget aimed to balance economic stability with the promotion of social welfare and development.

Revenue

For the revenue component, the budget allocated Rs. 170 crores. This portion of the budget was derived from a variety of sources, including:

Taxation of income, wealth, and estates Tariffs and duties on imported goods Petty revenues Excise duties

A significant portion of the revenue came from trade and commerce, highlighting the importance of the tax system in providing the necessary financial resources for the government's various initiatives.

Population Statistics

As of 1947, the population of India stood at 300 million. At that time, the population was a critical factor in shaping the budget, as government programs had to cater to an extensive populace.

The large population presented both challenges and opportunities. The budget had to be designed with the goal of improving the standard of living for the majority of the population, especially in the rural areas where the majority resided. Programs aimed at literacy and healthcare were given significant attention to enhance the overall well-being of the citizens.

Conclusion

The first union budget of independent India, presented in 1947-48, laid the foundation for the economic policies that would shape the destiny of the nation in the decades to come. The allocation of Rs. 197 crores for expenditure and Rs. 170 crores for revenue marked a significant step towards nation-building. As the newly formed government grappled with the numerous challenges of an independent India, the budget allocation demonstrated a commitment to both economic and social stability.

For a closer look at the budget speech, [Source: ]. This source provides additional insights into the context and specific details of the first union budget.