Budget Trivia (Part I): Did you know which budget introduced different tax slabs for married and single Indians?
Encompassing over 70 years of history of independent India, in our Budget Trivia series, we present to you some of the lesser-known facts about the Budget process
1947-48 | Independent India’s first budget, presented by finance minister RK Shanmukham Chetty, earmarked a total expenditure of Rs 197.39 crore. Nearly half of this (46 percent) or Rs 92.74 crore was allocated for just one department. Which department was this? Ans: Defence Services (In image, Shanmukham Chetty, Finance Minister broadcasting on the Budget presented by him in the Indian Parliament in November 1947; Wikimedia Commons)
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1948-49 | Finance minister R.K. Shanmukham Chetty, in independent India’s second budget, used a term that later became an institutional process for every year the Lok Sabha elections are held. What is this term? Ans: “Interim Budget”. This was the first time Chetty introduced it in his budget speech for 1948-49. Subsequently, Interim Budget began to mean a budget for a short period, usually presented just ahead of Lok Sabha elections. (Finance Minister P Chidambaram arrives at the parliament to present the interim budget in 2014: Reuters)
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1949-50 |This budget abolished a tax that is currently very prevalent and is closely monitored by tax authorities to prevent evasion? What tax is this? Ans: Capital Gains Tax (Reuters)
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1950-51 | This budget formally announced a new body headed by the Prime Minister that was entrusted with the task of steering a defined development programme. What is the name of this body? Ans: Planning Commission (In image, Govind Ballabh Pant with TT Krishnamachari and members of Planning commission in 1957; Wikimedia Commons)
1951-52 | This budget doubled the surcharge to 100 percent in a group of widely consumed agro-based items. Which are these products? Ans: Ale, beer, spirits, and other fermented liquor (Reuters)
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1952-53 | This budget announced the receipt of assistance from a very popular US-based philanthropic organization. Which organization is this? Ans: Ford Foundation (In image, 1956 Ford Continental Mark II; Wikimedia Commons)
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1953-54 | This budget raised the minimum income tax exemption limit for individuals by nearly 17 percent, offering relief to thousands of taxpayers. What was the new limit? Ans: It was raised to Rs 4,200 a year from Rs 3,600 earlier (In image, taxpayers line up to submit their income tax returns in New Delhi; Reuters)
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1954-55 | This budget announced plans to set up a specialized financial institution to offer loans to the industry. Which institution was this? Ans: ICICI (Reuters)
1955-56 | A highly significant income tax change was proposed in this budget. What was it? Ans: It proposed different tax-exempt slabs for married and unmarried persons as part of a plan to create a suitable scheme of family allowances. (Reuters)
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1956-57 | This budget brought back a taxation concept that was only abolished a few years ago. What is it? Ans: Capital gains tax (CD Deshmukh who presented the budget in 1956, Photo Division, GOI)
