The Privy Purse was the amount paid to the former royal families of Indian princely states after their merger into the Indian Union following independence in 1947. It was essentially a form of pension for the royal families who lost their territorial sovereignty. The Privy Purse system was abolished by the then Prime Minister of India, Indira Gandhi, in 1971.
Background:
- When India became independent, several princely states had opted to join either India or Pakistan. In return for their allegiance, the Indian government assured these royal families a Privy Purse.
- This amount was meant to preserve the privileges of the erstwhile rulers, including allowances for their lifestyle and families.
Reason for Abolition:
- In 1971, under the leadership of Indira Gandhi, the Indian government felt that paying the Privy Purse was a financial burden on the state.
- Indira Gandhi argued that the Privy Purse system was anachronistic and did not align with the ideals of the newly independent India.
- The government abolished the Privy Purse through the 26th Constitutional Amendment Act.
Conclusion:
The abolition of the Privy Purse by Indira Gandhi marked a significant step in reducing the influence of former royal families and consolidating power under the Indian republic. It was part of the broader socio-economic reforms that sought to modernize India and eliminate vestiges of the colonial past.