union budget 2023-24, Dhirubhai Ambani was in a quandary … Finance Minister VP Singh’s move after which Rajiv Gandhi snatched the chair
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The story begins after the 1984 general elections. No interim budget had been presented since the elections held in December 1984. After the eighth general elections, VP Singh presented the annual budgets for 1985–86 and 1986–87. He was then the Finance Minister in the Rajiv Gandhi government. Rajiv Gandhi wanted a reduction in the License Raj. VP Singh was slowly taking steps towards realizing his idea.
VP Singh was forced to remove
Smuggling of gold declined when VP Singh was the finance minister. He had cut the gold tax during his time. Also decided to give some part of the seized gold to the police. He also gave unprecedented powers to the Enforcement Directorate (ED) of the Finance Ministry. Under this, ED was instructed to act openly against tax evaders. After this many high profile personalities including Dhirubhai Ambani and Amitabh Bachchan were raided here. Rajiv Gandhi became very angry because of this. He was forced to remove VP Singh from the chair. The reason behind this is believed to be that many raids took place at the industrialists who had earlier supported the Congress.
Congress was not the first finance minister to present the budget, why did Nehru give a chance to a critic?
Dhirubhai did not have good relations with VP Singh
Everyone knew that Dhirubhai’s relations with VP Singh were not good. In May 1985, VP Singh suddenly banned the import of purified terephthalic acid. This was necessary as a raw material for making polyester filament yarn. This made it difficult for Reliance to run operations. Reliance had to struggle a lot to continue the operations.
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