Union Budget 2025 Latest News Today: As India gears up for Modi 3.0’s Union Budget for the upcoming fiscal year, there is strong speculation about new relief for the middle class in terms of income tax slabs. In addition, a slew of measures is expected to be announced on February 1, when Union Finance Minister Nirmala Sitharaman presents the Union Budget in Parliament.
With the First Advance Estimates released by the government indicating that India’s GDP is likely to grow by 7.3% in the current financial year (2023-24), industry experts expect Sitharaman’s roadmap to provide key guidance for capital expenditure, among other priorities.
Over the past seven decades, India has witnessed several landmark budget announcements. Among them, one Union Budget was famously dubbed the ‘Black Budget.’ But what was it, when was it presented, and why did it earn that infamous nickname? Let’s find out.
The Union Budget of 1973-74 is referred to as India’s ‘Black Budget.’ Presented by then Finance Minister Yashwantrao B Chavan, it earned this title due to the steep fiscal deficit at the time. India’s fiscal deficit stood at Rs 550 crore, which was considered unprecedented and highlighted the challenging state of the Indian economy.
Fiscal deficit reflects the health of a country’s economy. It is the difference between the government’s total income and total expenditure, serving as a barometer of the nation’s economic condition. A higher fiscal deficit typically indicates tumultuous times for the country, making the Rs 550 crore deficit a significant concern during that period.
In the lead up to the Emergency of 1975, the Black Budget also had some key announcements. The Indira Gandhi government had announced Rs 56 crore fund for nationalisation of coal mines, insurance companies and Indian Copper Corp. The rationale given by the government was that the nationalisation of coal mines will help in the growing demand in the power sector.
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