Archive · 31 Jan 2026
India's 1973 'Black Budget' Reflects Economic Crisis
In 1973, India had a very tough budget called the 'Black Budget'.
It was called black because the country was in a lot of financial trouble.
The government was spending much more money than it was earning.
This happened because India had a war with Pakistan in 1971, a bad drought in 1972, and a big increase in oil prices in 1973.
The budget had to spend a lot of money on helping people affected by the drought and on buying food from other countries.
It also put some industries under government control to try and make things more stable.
This budget is remembered as a difficult time for India's economy.
The 1973-74 Union Budget is known as India's 'Black Budget' due to a high fiscal deficit of Rs 550 crore.
The budget was presented by Finance Minister Yashwantrao B. Chavan during Prime Minister Indira Gandhi's tenure.
Key factors contributing to the economic crisis included the 1971 war with Pakistan, a severe drought in 1972, and the 1973 oil shock.
The budget allocated Rs 220 crore for drought relief and Rs 160 crore for importing food grains.
The term 'Black Budget' reflects the grim economic reality and financial strain faced by the country.
- Who
- Finance Minister Yashwantrao B. Chavan
- What
- Presentation of India's 1973-74 'Black Budget'
- When
- 1973-74
- Where
- India
- Why
- To address severe economic strain due to fiscal deficit, war, drought, and oil shock
- Budget Year
- 1973-74
- Finance Minister
- Yashwantrao B. Chavan
- Fiscal Deficit
- Rs 550 crore
- Prime Minister
- Indira Gandhi
- Key Factors
- 1971 war with Pakistan, 1972 drought, 1973 oil shock
- Allocation for Drought Relief
- Rs 220 crore
- Allocation for Food Grain Imports
- Rs 160 crore
- Allocation for State Control
- Rs 56 crore