In its seven decade journey since independence, India has witnessed many iconic budgets. One of them was 1973-74’s Union Budget under the leadership of India’s third Prime Minister Indira Gandhi. 1973’s budget is widely known as ‘Black Budget’. But why? Lets find out.
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Who Presented 1973’s Black Budget?
The ‘black budget’ of 1973-74 was presented by India’s then Finance Minister Yashwantrao B Chavan, under the leadership of India’s third PM Indira Gandhi.
When Was The Black Budget Presented?
Yashwantrao B. Chavan had presented the ‘black budget’ on February 28th, 1973.
Why Is 1973’s Budget Called A ‘Black Budget’?
1973’s union budget is widely known as the ‘black budget’ because during this year, the fiscal deficit was as high as Rs 550 crores.
For the unversed, fiscal deficit It is the difference between the total income of the government and its total expenditure incurred. If the income is more than the expenditure, it becomes a surplus. On the other hand, if govt’s expenditure is more than its income, it becomes a deficit.
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Among the key announcements of the ‘black budget’ was the govt announcing Rs 56 crore for the nationalisation of the general insurance companies, Indian Copper Corp and coal mines. This was done to allow uninterrupted supply of coal at a time when there was growing demand for coal in industries like power, cement and steel.
When Did Indira Gandhi Serve As India’s Finance Minister?
During her tenure as India’s third PM from 1966 to 1977, Indira Gandhi also briefly served as the country’s Finance Minister from 16 July 1969- 27 June 1970. Before Gandhi, Morarji Desai was India’s Finance Minister from 13 March 1967- 16 July 1969. And after her, Yashwantrao B. Chavan took over as India’s FM from 27 June 1970- 10 October 1974.
Who Is India’s Current Finance Minister?
Nirmala Sitharaman is India’s Finance Minister
at present. On 31 May 2019, she scripted history by becoming India’s first full time female Finance Minister.
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She is also only the second woman to serve as our country’s FM, with Indira Gandhi being the first one to do so when she served the role briefly in 1969-70.
