Dr Manmohan Singh's first budget in 1991 is considered to be one of the landmark union budgets presented in the history of independent India.
In 1991, newly appointed finance minister Dr Manmohan Singh was given an India which was on the verge of an economic collapse. With forex reserves running low and the loss of essential imports such as oil and raw materials, the then UGC Chairman took over and averted a financial crisis for the nation.
Dr Manmohan Singh's first budget in 1991 is considered to be one of the landmark union budgets presented in the history of independent India. This budget introduced economic reforms which would push India towards growth it had not achieved before.
In his budget for 1991-92, Finance Minister Dr Manmohan Singh turned the tide for the Indian economy for years to come.
With a focus on liberalisation, privatisation and opening up the economy, Singh presented a budget reminiscent of Rajiv Gandhi's policy of LPG (liberalisation, privatisation and globalisation).
In his , Dr Singh stated that “over-centralisation and excessive bureaucratisation of economic processes have proved to be counterproductive," adding there was a need to expand the operation of market forces.
The former finance minister added that the purpose of the reforms would "increase the efficiency and international competitiveness of industrial production to utilise for this purpose foreign investment and foreign technology to a much greater degree than we have done in the past, to increase the productivity of investment, to ensure that India라이브 바카라 financial sector is rapidly modernised, and to improve the performance of the public sector, so that key sectors of our economy are enabled to attain an adequate technological and competitive edge in a fast-changing global economy".
With this budget, Singh reduced import restrictions and privatised state-owned enterprises. At the time of his speech, India had just 15 days worth of forex reserves left and Singh moved to abolish the license raj system.
"It is essential to increase the degree of competition between firms in the domestic market so that there are adequate incentives for raising productivity, improving efficiency and reducing costs,” said Singh.
Amid the backlash, Singh addressed an impromptu press conference on July 25, 1992, the day after presenting his budget.
Congress leader Jairam Ramesh writes in his book 'To the Brink and Back: India's 1991 Story,' and recalled that the former finance minister held the conference to "ensure that the message of his budget did not get distorted by less-than-enthusiastic officials."
Ramesh added that PM Narasimha Rao left Singh to face the flak "on his own."
"He painstakingly defended the proposals to increase fertiliser, petrol, and LPG prices," he added, stating Singh referred to the landmark budget as a "budget with a human face".
The Congress leader also noted "in the CPP meetings, the finance minister cut a lonely figure and the prime minister did nothing to alleviate his distress." The only MPs to back the 1991 budget were Mani Shankar Aiyar and Nathuram Mirdha.
Dr Manmohan Singh passed away on Thursday at the age of 92. He was rushed to AIIMS Delhi due to age related concerns. Following the demise of the former prime minister, a period of seven day national mourning has been declared.