Wealth Tax was introduced in Budget 1957-58, presented by T T Krishnamachari. Levied on the total value of personal assets, it remained in the picture in one form or the other till Finance Minister Nirmala Sitharaman abolished it in 2015, her maiden Budget. During his next stint as finance minister, Krishnamachari, in his interim and Union Budgets of 1965-66, introduced the first voluntary disclosure income scheme (VDIS) against black money — it was the first such effort.
T T Krishnamachari (centre) presiding over the State’s Finance Minister’s Conference in New Delhi on November 18, 1957
The 1973-74 Budget, presented by Y B Chavan, came to be called the “Black Budget”. The 1971 India-Pakistan war and a failed monsoon had caused severe economic distress in India. The Budget had a deficit of Rs 550 crore — hence "Black Budget", though the term usually refers to a Budget where funds are set aside for classified work. Further, it came under criticism for setting aside Rs 56 crore for the nationalisation of coal mines, general insurance companies and Indian Copper Corporation.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU