Black Budget of 1973 – This one is definitely memorable. This budget presented by Finance Minister Yashwantrao Chavan was called the “Black Budget”, mainly due to its focus on tackling India’s poor financial situation and rising inflation. This is why it was called the Black Budget.
The term “black” comes from the huge budget deficit India faced at the time, which was caused by a combination of factors such as the 1971 war with Pakistan, the 1973 oil crisis, and rising defense expenditure. All of these put India’s finances under strain, leading to a massive fiscal deficit in the budget.
Chavan was forced to raise taxes significantly in the 1973 budget. Income tax rates were increased, and customs duties were hiked, which led many to see it as a budget that placed too heavy a burden on the common man. The deficit was so high that people saw the budget as a response to an economy in very serious trouble, hence the term “black”.
So, the “Black Budget” of 1973 was not just a tough budget – it was also a reflection of how India was trying to deal with the economic storms.
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