Black Budget vs Dream Budget: India's Economic Turning Points

• The 1973-74 Union Budget, known as the "Black Budget," was presented by Finance Minister Yashwantrao B. Chavan during Indira Gandhi's tenure.
• It revealed a fiscal deficit of Rs 550 crore, a significant sum at the time, reflecting the financial strain from the 1971 war with Pakistan and the Bangladesh refugee crisis.
• The budget allocated funds for nationalizing coal mines and general insurance, drought relief, and food grain imports to address severe shortages and economic hardship.
• The 1997 budget, dubbed the "Dream Budget," was presented by Finance Minister P. Chidambaram, aiming to boost confidence and economic growth.
• It significantly cut personal and corporate income tax rates, introduced the Voluntary Disclosure of Income Scheme, and simplified customs and excise duties, leading to a surge in tax collections over time.

Why It Matters: India's "Black Budget" of 1973 reflected crisis management, while the "Dream Budget" of 1997 spurred growth through tax reforms.