In which year did James Wilson present the first Indian budget under British rule, laying the foundation of the modern Union Budget system?

Introduction / Context:
This question concerns the financial history of colonial India. The annual budget is a key instrument of economic policy and public finance. Under British rule, a formal budget for India was first presented by James Wilson, a Scottish economist and finance member of the Viceroys Council. Knowing the correct year of this first budget helps you track how the present day Union Budget evolved from colonial practices.

Given Data / Assumptions:
- The person named is James Wilson, the first Finance Member in British India.
- The event is the presentation of the first Indian budget.
- The options list several years in the eighteen fifties and eighteen sixties.
- The task is to identify the specific year in which this first budget was presented.

Concept / Approach:
The core concept is the timing of institutional reforms after the Revolt of 1857. The Crown formally took over rule from the East India Company in 1858. To reorganise finances, the British government sent James Wilson to India. He presented the first budget in 1860, two years after the formal transfer, setting out revenue and expenditure in a modern format. When faced with similar dates, it is important to tie them to major events such as the revolt and the transfer of power, which cluster around this period.

Step-by-Step Solution:
Step 1: Recall that the Revolt of 1857 led to the end of company rule and the beginning of direct Crown rule in 1858.Step 2: Recognise that the British needed a new financial system for the reorganised administration.Step 3: Remember that James Wilson, as Finance Member, was sent to India to stabilise finances and that he introduced the first budget in 1860.Step 4: Look at the options and identify 1860 as the year that fits this narrative and is mentioned in standard references.Step 5: Mark 1860 as the correct answer and reject the other nearby years as distractors.

Verification / Alternative check:
You can verify this by connecting the date with other milestones. The Government of India Act of 1858 reorganised administration and created the office that James Wilson later filled. His budget in 1860 came at the start of this new phase of direct Crown rule. If you see 1860 and 1859 in the options, remember that it took a short time after 1858 to set up the budget system, which points more strongly to 1860 than to earlier dates.

Why Other Options Are Wrong:
- 1859: This is very soon after the transfer of power and before the first formal Union level budget is recorded in most standard accounts.
- 1863: By this time the budget system was already in operation, so this year does not match the description of the first budget.
- 1865 and 1867: These dates refer to later financial years within the ongoing budget system and are included only to confuse candidates who do not remember the exact year.

Common Pitfalls:
Students sometimes memorise that the budget was introduced sometime in the early eighteen sixties but get lost among close dates. Others confuse the first Indian budget with later budgets of independent India. A good strategy is to remember a simple chain revolt in 1857, Crown rule in 1858, then first budget soon after in 1860 under James Wilson. Fixing these three dates together makes it easier to recall the correct answer in the exam hall.

Final Answer:
The first Indian budget under British rule was presented by James Wilson in the year 1860.