Understanding the Term Budget and Its Traditional Briefcase

A budget is a financial plan that helps manage income and expenses. It is used by individuals, businesses and governments to ensure proper money management. Governments present annual budgets to plan spending on public services. A well-planned budget prevents overspending and supports economic growth. The tradition of carrying the budget in a briefcase started in the UK and was later adopted by many countries.

What is a Budget?

A budget is a financial plan that shows how a government earns and spends money in a year. It is an important announcement made by the finance minister of a country. The budget decides how much money will be used for development, welfare programs and other expenses.

Origin of the Word “Budget”

The word ‘budget‘ comes from the French word ‘bougette,’ which means a small leather bag. In history, ministers carried important financial documents in such bags. Over time, the term ‘budget’ started being used for the annual financial plan of a country.

The British Tradition of the Budget Briefcase

In Britain, finance ministers used a red leather briefcase to carry budget documents. This tradition started in 1860 when William E. Gladstone, the British Chancellor, used a red-colored bag with the Queen’s monogram. This bag was called the “Gladstone Box” and became a symbol of the budget.

Why was the Budget Bag Red?

The red color was chosen due to two possible reasons:

• It was Prince Albert’s favorite color, and it matched the royal family’s coat of arms.
• Queen Elizabeth I’s representative once gave a red bag filled with food items to the Spanish ambassador, starting the red color tradition.

Red is also a bright color that grabs attention, making it suitable for an important announcement like the budget.

The Budget Bag Tradition in India

India followed the British tradition of carrying a budget briefcase. The first finance minister of independent India, R.K. Shanmukham Chetty, carried a budget bag in 1947 while presenting the country’s first budget. Over the years, different finance ministers used different styles and colors of bags.

Changes in the Budget Briefcase in India

• 1958: Prime Minister Jawaharlal Nehru used a black briefcase instead of a red one.
• 1991: Finance Minister Manmohan Singh carried a black bag while presenting the economic liberalization budget that opened India’s economy.
• 1998-99: Finance Minister Yashwant Sinha used a black leather bag with straps and buckles.
• 2010: President Pranab Mukherjee, when he was finance minister, carried a red box like the British Gladstone Box.

Nirmala Sitharaman’s Modern Change

Finance Minister Nirmala Sitharaman broke the British-era tradition in 2019. Instead of a leather briefcase, she used a red cloth pouch, known as a ‘bahi-khata,’ which is a tradition Indian ledger. This symbolizes India’s rich heritage.

Introduction of the Digital Budget

In 2021, she introduced a paperless budget by using a tablet inside a red pouch. This step showed India’s move towards digital governance while keeping traditions alive. Since then, she has continued presenting the budget on a tablet.