Finance Minister Nirmala Sitharaman is poised to match the record set by former Prime Minister Morarji Desai as she prepares to present her sixth consecutive budget on February 1st. Sitharaman, the first full-time female finance minister of India, has already presented five full budgets since assuming office in July 2019 and is now set to deliver an interim or vote-on-account budget next week.
With this upcoming presentation, Sitharaman will surpass the previous records held by notable predecessors such as Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha, all of whom presented five budgets in a row during their tenures.
Desai, during his tenure as finance minister, delivered five annual budgets and one interim budget between 1959 and 1964. Sitharaman’s forthcoming interim budget for the fiscal year 2024-25, to be presented on February 1st, will serve as a vote-on-account, granting the government the authority to allocate certain sums of money until a new government assumes office following the April-May general elections.
Given the impending parliamentary elections, Sitharaman’s interim budget is not expected to feature any major policy changes. During an industry event last month, Sitharaman clarified that no “spectacular announcements” should be anticipated in the interim budget, as it will primarily function as a vote-on-account prior to the general elections.
Following the formation of the new government, expected around June, a final budget for the fiscal year 2024-25 will be presented, likely in July. While interim budgets typically do not include significant policy announcements, the government remains empowered to address urgent economic issues as necessary.
Since assuming office in 2014, Arun Jaitley, under the Modi government, presented five consecutive budgets from 2014-15 to 2018-19. It was during Jaitley’s tenure in 2017 that the tradition of presenting the budget on the last working day of February was shifted to the 1st of the month.
After the 2019 general elections, Sitharaman took charge of the finance portfolio in the Modi 2.0 Government, becoming the second woman to present the budget after Indira Gandhi, who did so for the financial year 1970-71.
India aims to achieve a $5 trillion economy by 2027-28 and a $30 trillion economy by 2047. Morarji Desai, holding the record for presenting the maximum number of budgets (10), including six consecutive ones, remains a notable figure in India’s fiscal history.
