Following the Second General Elections, the full Budget 1957-58 paved for the setting up the country’s three major steel plants and financial institutions like IDBI, ICICI and UTI.
Wealth tax, tax on expenditure and tax on railway passenger fee were also introduced for the first time in this Budget. Presenting this budget on May 15, 1957, T.T. Krishnamachari said that it was felt that income as defined by the Income Tax laws and practice in use at the time was an insufficient measure of tax paying capacity creating the need for taxation based on wealth.
This, he said, was likely to be more equitable and hoped that over time it would lead to a reduction in the possibilities of tax evasion. Amongst other items he exempted from this levy were works of art and those archaeological collections that were not intended for sale.
The Ministry of Iron and Steel had been just set up. The Budget reported that the final project report for the first of the three steel plants which it has been decided to set up — that at Rourkela, had been approved and work at site was progressing