Who is Known as the Father of the Indian Budget? Find Out Here!

Did you know that India’s first federal budget was presented by Scotsman James Wilson on April 7, 1860?

The Union Budget is crucial for the development of India. It outlines the government’s financial plan, detailing how resources will be allocated to various departments. This ensures that funds are used efficiently for the growth of the country.

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Finance Minister Nirmala Sitharaman will present the upcoming Union Budget for the fiscal year 2025-26 in Parliament on February 1.

The Budget has been a mirror of India’s journey, reflecting its challenges and triumphs. It’s not just about spending and saving; it’s about building a legacy.

Speaking of legacy, do you know who presented India’s first-ever budget? In this article, we will explore the history of Indian budgets, the key players involved, and the evolution of the federal budget.

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Who presented India’s first budget before independence?

Source: Wikipedia

James Wilson proposed the first federal budget on April 7, 1860. He was a financial member of the India Council and founder of The Economist newspaper.

He proposed a union budget primarily to address the financial turmoil that followed the Sepoy Mutiny of 1857. Following this rebellion, the British government faced significant financial challenges, including high military spending and debt.

In order to establish a stable tax structure and reform the financial system, Queen Victoria sent Wilson to India. His budget aims to create a sustainable revenue model for the British government in India.

He introduced income tax, which became the main source of revenue, and implemented a new paper currency system. The UK government initially considered introducing direct taxes but was unclear on how to implement them. They also introduced an ill-conceived license tax bill.

However, when James Wilson took office, he abandoned this plan and introduced two streamlined bills: an income tax and a revised license tax.

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In his financial statement, he announced that individuals earning less than Rs 200 per annum will be tax exempt. Inspired by the British system, Wilson also established an appropriation audit to monitor monthly spending accounts.

He was entrusted with solving the financial difficulties in India after the rebellion and made outstanding contributions in a short period of time.

Wilson’s efforts focused on stabilizing the economy and ensuring that the British government could effectively manage India’s finances during turbulent times.

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Who presented the first budget of independent India?

Source: Economic Times

On November 26, 1947, RK Shanmukham Chetty presented the first federal budget of independent India.

The budget comes three months after India gained independence from British rule. As India’s first finance minister, Chetty aims to lay a solid foundation for the country’s economic framework during a period of major transformation and challenges.

His budget focused on pressing issues such as addressing inflation and the need for economic stability, while also outlining revenue and spending plans for the newly independent nation.

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Who is called the father of Indian budget? Let’s take a look!

Source: Politician

Professor Prasantha Chandra Mahalanobis is a renowned Indian statistician and scientist, often referred to as the “Father of Indian Budget”. He is often called the “Father of Indian Budget” for the following reasons:

• He made significant contributions to the statistical methods underpinning economic planning and budgeting in India.
• His work laid the foundation for data-driven decision-making in government policy, particularly in the development of India’s Five-Year Plan.
• Mahalanobis established the Indian Statistical Institute in 1931, which became a center for statistical research and education.
• He played a crucial role in developing large-scale sample survey methods, which provided important data for economic planning.
• His model, known as the Mahalanobis model, played an important role in formulating the Second Five-Year Plan, which emphasized industrialization and economic growth.

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By integrating rigorous statistical analysis into the budget process, Mahalanobis ensured that economic policies were based on reliable data, making him a key figure in India’s financial history and earning him this recognition.

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Who is Prasantha Chandra Mahalanobis?

Prasanta Chandra Mahalanobis was born on June 29, 1893 in Calcutta, India. He was a famous statistician and physicist. He completed his undergraduate studies in Physics from Calcutta University.

He later continued his studies at King’s College, Cambridge, where he developed a keen interest in statistics. His early work laid the foundation for his future contributions to Indian statistical science.

Indian Statistical Institute established

In 1931, Mahalanobis founded the Indian Statistical Institute (ISI) in Calcutta, which became India’s premier center for statistical research and education. Under his leadership, the ISI played a crucial role in shaping the field of statistics in the country and remains influential today.

Contributions to statistics

Mahalanobis Distance: One of Mahalanobis’s most important contributions is the Mahalanobis distance, a statistical measure used to determine the distance between a point and a distribution based on multiple variables. distance.

This concept is important in various fields, including machine learning and cluster analysis. This measure allows comparisons to be made that illustrate correlations between variables, making it a powerful tool in multivariate analysis.

Sample Surveys and Economic Planning: Mahalanobis played an important role in developing large-scale sample survey methods. He established the National Sample Survey (NSS) and the Central Statistical Organization (CSO), which were crucial for collecting and analyzing socio-economic data in India.

His work had a significant impact on India’s economic planning, especially during the formulation of the Second Five-Year Plan (1956-1961) which emphasized industrial development.

Recognition and inheritance

For his pioneering contributions to statistics and economic planning, Mahalanobis received numerous honors, including the Padma Vibhushan, one of India’s highest civilian honors, in 1968.

He has served as Honorary Statistical Advisor to the Government of India and has held various prestigious positions in international organizations, including the United Nations.

Mahalanobis died on June 28, 1972, but his legacy lives on through his fundamental work in statistics and its application to social and economic problems in India.

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