DAILY NEWS ANALYSIS

GS-I : Modern History Modern India

14 July, 2020
10 Min Read

Privy Purses

Introduction

With the passage of the Indian Independence Act, of 1947, the British Government granted independence to the areas that were directly under their rule (British India) and left the choice to the princely states to decide their future course of action. Sardar Vallabhbhai Patel persuaded these princely states to join Indian Union after independence.
In consideration of such princely states signing the Instrument of Accession, the Government of India granted to them a ‘privy purse’, which was a specified sum of money that was payable annually to the rulers of such States.

Relevance of ‘privy purse’

The payments of the ‘privy purse’ were made to the former rulers under constitutional provisions of Art. 291 and Art. 362. However, it was often questioned as a relic of the colonial past.
The privy purse conferred ‘special status’ to the ruling class, which continued the British practice of ruler and ruled.
It went against the idea of equality enshrined in the Preamble and Part 3 of the Constitution.
Moreover, ‘privy purse’ was an added economic pressure on a newly born independent nation, that was ridden with poverty, hunger and security challenges.
Therefore, the then Prime Minister, Indira Gandhi, argued the case for the abolition of the privy purse. So, by the 26th Amendment to the Constitution of India in 1971, the ‘privy purse’ was abolished. The amendment leads to the omission of Articles 291 and 362.

Reasons for the abolition of ‘privy purse’

The abolition of privy purse was needed because it went against the idea of equal rights for all citizens, as enshrined under the fundamental rights of the Indian constitution.
The concept of rulership, with ‘privy purse’ and special privileges, was incompatible with principles of democracy, equality and social justice and it was unrelated to any current functions and social purposes.
In order to fulfil the aspiration of a socialistic pattern of society and burgeoning economic pressure, due to the 1971 refugee crisis from east Pakistan, there was a need for the Government to reduce the revenue deficit.

Conclusion

Though the abolition of privy purse was alleged as constitutional fraud by the rulers of princely states, it was in sync with the ethos of egalitarian society, as envisaged by the constitution.

Source: TH

Join Our Telegram

India–Australia Economic Cooperation and Trade Agreem

India–Azerbaijan

05 Apr, 26
SHARE

A year after tensions arising from Operation Sindoor, India and Azerbaijan have taken steps to restore and normalise bilateral relations. The 6th round of Foreign Office Consultations, held in Baku, marked the first such engagement since 2022, signaling renewed diplomatic momentum. Recent Diplomatic Engagement During the consultations, bo

India–Australia Economic Cooperation and Trade Agreem

04 Apr, 26
SHARE

The India–Australia Economic Cooperation and Trade Agreement has completed four years since its signing. Both countries now aim to build on this progress through strengthened collaboration and ambitious targets, including reaching AUD 100 billion in bilateral trade by 2030. What is the India–Australia Economic Cooperation and Tra

ADR Report on Political Funding

03 Apr, 26
SHARE

A recent report by the Association for Democratic Reforms (ADR) analyses donations of ?20,000 or more declared to the Election Commission of India (ECI) by national political parties for FY 2024–25, highlighting transparency and accountability in political financing. Key Findings Massive Funding Surge Total donations to nationa

Maritime Chokepoints

03 Apr, 26
SHARE

Maritime chokepoints are narrow channels along global shipping routes where maritime traffic is concentrated. These points are geopolitically and economically critical, as they handle a large proportion of global trade, especially energy shipments. Current Relevance Over two-thirds of seaborne energy trade passes through a handful o

US-Israel-Iran War

01 Apr, 26
SHARE

Following the launch of Operation Epic Fury (U.S.) and Operation Roaring Lion (Israel), the geopolitical landscape has shifted fundamentally with the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.Iran retaliated through Operation True Promise 4, launching missile attacks against Israel and nearby Gulf states. The escala

Quick Links Testimonials FAQ

Crash Course

Regular Modules 2024

Mains

Optional

Privy Purses

Privy Purses

India–Azerbaijan

India–Australia Economic Cooperation and Trade Agreem

ADR Report on Political Funding

Maritime Chokepoints

US-Israel-Iran War

DNA

05 Apr,2026

Important GS Topics

Toppers

Search By Date

Top Editorials

UPSC Courses

Saarthi Mentorship Programme

Important Tags

Articles:Geography And Environment

Articles: History Culture Society

Articles: Governance & National Issues

Articles: IR & IO

Articles: Economic Development & Economic Issues

Articles: S&T Internal Security

Articles: Ethics & Others

Articles: Others

Newsletter Subscription

SMS Alerts

Important Links