New Delhi:
The country’s first finance minister RK Shanmugam Chetty presented the first interim budget on 26 November 1947. This budget was from 15 August 1947 to 31 March 1948. He presented the first full budget of independent India on 28 February 1948. No new tax was imposed in this budget. This budget was only an account of the Indian economy. The role of Professor PC Mahalanobis, member of the Planning Commission, was important in making it. After this John Mathai became the Finance Minister of India. He presented two full budget. But the 1950-51 budget was leaked before appearing in Parliament. This created a ruckus. Because of this Mathai had to resign. The reason for his resignation was also differences with Prime Minister Jawaharlal Nehru.
When did John Mathai become Finance Minister
John Mathai was made Finance Minister after the resignation of RK Shanmugam Chetty. He presented two Union Budgets in 1949–50 and 1950-51. John Mathai was the same person who prepared a Bombay plan in 1944 under the guidance of big industrialists like JRD Tata, Ghanshyam Das Birla and Kasturbhai Lalbhai. The objective of this scheme was to promote large investment in roads, railways and energy areas in the country.
Photo Credit: Drjohnmatthai.com
After presenting two general budgets, John Mathai had differences with Prime Minister Jawaharlal Nehru. Actually the Mathai was not happy with the growing influence of the Planning Commission. He felt that the Planning Commission is acting like a parallel cabinet. This could reduce the rights of the Finance Ministry. Some experts believe that he resigned from the government on this issue and returned to the Tata Group.
Why Mathai had to resign
It is also said that the 1950 budget was leaked before appearing in Parliament. This incident caused tremendous uproar. John Mathai had to resign due to the budget incident. The tradition of printing the budget of this incident was also changed. By the year 1950, the budget was printed in the President’s building. But after leaking, he started to be printed in the press on Minto Road, New Delhi, but since 1980, the budget is being published from the basement of the North Block.

John Mathai was made Finance Minister after the resignation of RK Satmugam Chetty.
John Mathai was against the formation of the Planning Commission. He felt that an independent body like Planning Commission could weaken the autonomy and power of the Ministry of Finance. At the same time, Nehru wanted to move towards the socialist economic structure. He described the Planning Commission as necessary for the planning and development of the economy. Mathai was in favor of giving more freedom to the free market and private sector, while Nehru used to give priority to socialist models and was a supporter of state controlled development. He wanted the government to play a role in control and planning.
After Mathai’s resignation, CD Deshmukh was made the new Finance Minister. Along with this, the Planning Commission was firmly established. With this, the foundation of the central plan based economy was laid in India.