Right now everyone is eagerly waiting for Union Budget 2025. Finance Minister Nirmala Sitharaman is going to present the country’s general budget on 1 February 2025. People nationwide are optimistic about economic advancement as a result of this budget. However, it is important to note that there was a budget in this country that is famously referred to as the Black Budget. Indeed, you heard correctly.
Black Budget
This budget was introduced during the fiscal year 1973-74, a time when the nation was grappling with a significant economic crisis. It earned the name “Black Budget” due to its status as a deficit budget. The 1973-74 budget was presented under the leadership of Prime Minister Indira Gandhi, with Yashwantrao Chavan serving as the Finance Minister. The economy was in dire straits at that time.
Following the Indo-Pakistani War of 1971, the country experienced severe economic challenges. Additionally, the monsoon failed in 1973, leading to a drought that drastically reduced food grain production. These factors compelled the government to spend beyond its revenue, resulting in a budgetary deficit.
In his presentation of the budget, Finance Minister Yashwantrao Chavan remarked that the economic situation had deteriorated to such an extent that the implementation of a black budget was necessary. The aim was to address the significant shortfall in the treasury, which required cuts to various government programs.
The budget was referred to as the black budget because it represented a significant deficit of Rs 550 crore for the government. It’s called “black” since it highlights a situation where expenses outstrip income. During the presentation, Chavan pointed out that the country was facing tough times due to drought and food shortages, which contributed to this budget shortfall.