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The 1973-74 Union Budget, offered by Union Finance Minister Yashwantrao Chavan, exposed an unmatched financial shortage of Rs 550 crore, an incredible quantity for that age
The 1973-74 budget plan offered already Finance Minister Yashwantrao Chavan exposed financial shortage of Rs 550 crore. (News 18 Hindi File)
The Union Budget of India will certainly exist in Parliament on February 1. Union Finance Minister Nirmala Sitharaman will certainly supply the budget plan speech and supply an account of the country’s financial resources.
In this context, allow us recall at the 1973– 74 budget plan, which holds a well-known difference in the background of Indian spending plans as the‘Black Budget’ This budget plan showed the substantial financial difficulties of the moment and the federal government’s plans, which exceptionally influenced the nation’s monetary scenario.
After the India-Pakistan War in 1971, the Indian economic situation dealt with substantial pressure. War costs had actually diminished the federal government treasury. Exacerbating the scenario, the nation experienced all-natural catastrophes, consisting of dry spell, which significantly influenced farming manufacturing. This convergence of occasions brought about a decrease in federal government income and a synchronised rise in expense, inevitably causing a broadening deficit spending.
The 1973-74 budget plan offered already Finance Minister Yashwantrao B. Chavan exposed a stunning financial shortage of Rs 550 crore, an enormous amount at the time and extraordinary in range. This discovery subjected the precariousness of India’s financial scenario. During his budget plan speech, Chavan connected the shortage to the dominating dry spell, specifying, “the scenario in the nation has actually aggravated as a result of dry spell, there has actually been a big decline in food grain manufacturing, which has actually boosted the deficit spending.”
The government also made some important announcements in that budget. These included a provision of Rs 56 crore for the nationalisation of coal mines, insurance companies, and the Indian Copper Corporation. The government argued that nationalising coal mines would help meet the increasing demands of the energy sector. The ‘Black Budget’ had a profound impact on the country’s economic policies and plans, prompting the government to cut expenses and adopt financial discipline.
Expectations from the 2025 Union Budget
India is gearing up for the first Union Budget presentation of the Narendra Modi 3.0 government, for the upcoming financial year (FY 25-26). Finance Minister Nirmala Sitharaman will present the budget in Parliament on February 1, 2025.
Anticipation surrounds this budget presentation, with discussions taking place across various sectors. Individuals from different industries are putting forth a range of demands. Experts are advocating for income tax exemptions, while industry stakeholders are seeking relief measures.
There are reports that there might be relief for income tax payers. Moreover, the first estimates released by the government indicate that India’s GDP is likely to grow by 7.3 per cent in the current financial year (2023–24).
