The 1991 Budget: The budget that changed India forever
Today, September 26, 2020, marks the birthday of our former Prime Minister – Dr.ManMohan Singh, the man behind the economic reform of India. At Aparnaa World School, the best school in Jharsuguda, we thought to let you know what the man actually did.
1991 Liberalisation Policy: The Master Stroke by Dr.ManMohan Singh
The economic reforms kick-started in 1991 brought about expansion of the services sector helped largely by a liberalized investment and trade regime. They also increased consumer choices and reduced poverty significantly.
A huge culture shift
The new industrial policy electrified the atmosphere leading up to the presentation of the Budget. Dr. ManMohan Singh had helped prepare seven Budgets in the 1970s. But the July 24, 1991 Budget would be the first he would not only conceive and write (most of it, at least) but also actually present.
The Historic 1991 budget
The 1991 Budget ranked as the most historic of all. Dr. ManMohan Singh delivered a hugely moving speech. Its contents, of course, marked a huge paradigm shift in economic thinking and charted out a course that has remained steady for a quarter of a century — a course that has been embraced by all political parties when they have been in power.
The Game Changer
The new industrial policy had been made public four hours earlier. The new trade policy to dramatically change the environment for exporters and ease their access to imports.
It also articulated a new fiscal policy that Dr. Singh unveiled to reorient the nature and pattern of public expenditure with one of his favourite aphorisms — you can’t spend your way to prosperity.
Pros and Cons
The Budget met with its predictable quota of pros and cons. But what unnerved the PM and the FM was the revolt in the Congress party itself.
Aparnaa World School, the best school in Jharsuguda, wishes good health and prosperity to our former Prime Minister-Dr.ManMohan Singh.
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