What is the meaning of Budget ?

Using a realistic budget to forecast your spending for the year can really help you with your long term financial planning. You can then make realistic assumptions about your annual income and expense and plan for long term financial goals like starting your own business, buying an investment or recreation property or retiring.

The precedent for the convention of the budget speech started at 5:00 pm was set by Sir Basil Blackett in 1924. According to him, this was done to give some relief to officials who worked all night to present a financial statement

After Independence, India’s first Finance Minister R.K. Shanmukham Chetty, presented the first Budget at 5 pm on 26th November, 1947

The budget for Indian Railways, now part of the general Budget, has been allocated Rs 1.48 lakh crore as capital expenditure.

35,000 km of tracks will be completed under the Bharatmala project

The Budget is a financial statement made annually by the Chancellor of the Exchequer – currently Philip Hammond – to the House of Commons. It covers the nation’s finances, plans for any tax changes, and forecasts for the economy.

Some measures, such as any changes to the rates of duty on alcohol and tobacco, take effect on Budget day.

The Budget is the most extensive account of Government finances in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year called budgeted estimates

The word Budget comes from an old French word ‘bougette’ meaning little bag. It was customary to bring the statement on financial policy to the House of Commons in a leather bag. The modern equivalent of the bag is the red despatch box or Budget box.

The precedent for the convention of the budget speech started at 5:00 pm was set by Sir Basil Blackett in 1924. According to him, this was done to give some relief to officials who worked all night to present a financial statement

The wooden box was first used in 1860 by William Gladstone and was used consecutively until 1965 when Lord Callaghan used a new box.

After Independence, India’s first Finance Minister R.K. Shanmukham Chetty, presented the first Budget at 5 pm on 26th November, 1947

In 1997, Gordon Brown became the second Chancellor to use a new box.

The word “Interim Budget” was for the first time introduced by R.K. Shanmukham Chetty in his budget speech for 1948-49. From then onwards an interim budget began to mean a budget for a short period

George Osborne used the Gladstone box for his first Budget in 2010 before switching to a new box in 2011.

Planning Commission came into existence while presenting the budget for 1950-51, the first budget for the Republic of India

The Budget usually takes place on a Wednesday after Prime Ministers’ Questions but it can take place on any day of the week.

C.D. Deshmukh, the first Indian Governor of the Reserve Bank of India as well as the Finance Minister, presented an interim budget for 1951-52

Chancellors, unlike Ministers at the despatch box, can drink alcohol during the Budget Speech. The last Chancellor to do so was Kenneth Clarke, whose tipple of choice was whisky.

The longest continuous Budget speech was by William Gladstone on 18 April 1853. It lasted four hours and 45 minutes.

Krishnamachari-Kaldor's 1957 budget featured the first attempt to distinguish between active income (salaries or business) and passive income (interest or rent)

In contrast, Benjamin Disraeli’s 1867 Budget speech lasted only 45 minutes.

With 12 Budget speeches, William Gladstone holds the record for delivering more Budget speeches than any other Chancellor.

Morarji Desai has presented the maximum number of budgets so far- ten. They included five annual and one interim budget in the second tenure when he was both Finance Minister and Deputy Prime Minister

Morarji Desai presented annual budgets for each year from 1959-60 to 1963-64 and the interim budget for 1962-63. The annual budgets for three years between 1967-68 and 1969-70 and the interim budget for 1967-68 were also presented by Morarji Desai