Historical Figures

71. Sardar Patel opposed the budget presented by the minister of Muslim League

Liaquat Ali, a Muslim League member of the Interim Government, in his budget speech proposed to set up a commission to investigate allegations of non-payment of income tax by industrialists and businessmen and recover old income tax. He declared that these proposals were prepared on the basis of the Congress manifesto. Congress leader, They were not in a position to say anything openly in favor of industrialists and traders.

Liaquat Ali acted very smartly. He had already obtained the approval of the cabinet that the budget should be based on communist policies. He did not give any detailed information to the cabinet regarding taxes etc.

When he presented the budget, the Congress leaders were stunned. Sardar Patel and Rajagopalachari opposed this budget with great anger. As finance minister, Liaquat Ali Khan was given the right to intervene in every department of the government. He either declined every offer

Or would change it. Ministers, Liaquat could not even hire a peon without Ali Khan's permission. Finally, on the request of Congress, Lord Mountbatten spoke to Liaquat Ali and got the rates of taxes reduced considerably.