Question

Choose the name of the Prime Minister who abolished 'Privy Purse'.

• A. Morarji Desai
• B. Lal Bahadur Shastri
• C. Rajiv Gandhi
• D. Indira Gandhi

Hint:

The abolition of the Privy Purse in 1971 was a key component of Indira Gandhi's popular socialist campaign, represented by the slogan “Garibi Hatao” (Abolish Poverty), aimed at dismantling aristocratic relics.

Answer 1

The Correct Option is D

Step 1: Defining the 'Privy Purse':
During the integration of princely states post-1947, the government of India guaranteed hereditary rulers specific tax-free annual pensions or grants, termed “Privy Purses”, to encourage them to surrender their sovereignty.

Step 2: Ideological Shift in the late 1960s:
Under Prime Minister Indira Gandhi, the ruling party adopted a highly socialist and egalitarian policy platform. Indira Gandhi argued that hereditary privileges and state-funded allowances like the Privy Purse were incompatible with democratic equality, social justice, and economic progress.

Step 3: Constitutional Abolition:
Following a major electoral victory in the 1971 general elections, Indira Gandhi's government successfully passed the 26th Amendment to the Indian Constitution in 1971. This landmark amendment formally abolished the Privy Purse, ending the titles, privileges, and payments to former rulers. This matches Option (D).