Skip to content
Question

Q.Choose the name of the Prime Minister who abolished 'Privy Purse'. (A) Morarji Desai (B) Lal Bahadur Shastri (C) Rajiv Gandhi (D) Indira Gandhi

CBSECBSE Class XII Board 2026MCQ· 1mImportance★★★★★
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Indira Gandhi abolished the privy purse in 1971, ending the guaranteed annual payments to India's former princely rulers.

The privy purse was a constitutional guarantee introduced at independence to ease the integration of India's 565 princely states into the Union. When these rulers agreed to merge their territories with India in 1947–49, they surrendered sovereignty but retained certain privileges: tax-free annual payments from the central government, personal property rights, and symbolic titles. The privy purse was meant to compensate them for the loss of their kingdoms and ensure a smooth transition without resistance.

By the late 1960s, however, this arrangement had become politically contentious. The Congress party under Indira Gandhi was moving leftward, adopting socialist policies and championing the cause of economic equality. The privy purse—amounting to millions of rupees paid to a few hundred former rulers—was increasingly seen as an anachronism, a feudal relic incompatible with a democratic republic committed to social justice. Public opinion, especially among progressive and left-leaning groups, demanded its abolition.

Indira Gandhi first attempted to end the privy purse through a constitutional amendment in 1970. Parliament passed the bill, but the Supreme Court struck it down on technical grounds, ruling that the government had not followed proper procedure in obtaining presidential assent. Undeterred, Gandhi took a bolder step: she issued an executive order derecognizing the princes, and then called for fresh elections in 1971. Her campaign slogan, "Garibi Hatao" (Remove Poverty), resonated with voters, and she won a landslide victory. …

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.