T. T. Krishnamachari
T. T. Krishnamachari was the Indian Finance Minister from 1956–1958 and from 1964-1966
Krishnamachari was instrumental in setting up the country’s three major steel plants and financial institutions like IDBI, ICICI and UTI. He introduced path-breaking tax reforms during his stint as Finance Minister. Embarking upon measures needed for providing social security, Krishnamachari expanded the pension scheme to cover family members of the deceased government servants by introducing a new Family Pension Scheme in 1964. He planned schemes like the Rajasthan Canal Schemes, Dandakaranya and Damodar Valley Projects. The Neyveli Projects owe their existence to the fillip given by Krishnamachari. He put severe restrictions on imports through an import licensing system; withdrew budgetary allocation for non-core projects, set up Export Risk Insurance Corp to protect exporters against payment risks. Brought in wealth tax, a tax on expenditure and a tax on railway passenger fee. Raised peak excise to 400 per cent. First attempt to distinguish between active income (salaries or business) and passive income (interest or rent). Raised income tax rates. He did it to ease the pressure on the balance of payments and foreign exchange reserves caused by the high imports of food grains and industrial goods effected to check high inflation.