
How India Funded a Refugee crisis (1971/Bangladesh Liberation War)
In 1971, after a huge influx of refugees from then East Pakistan, India was in need of resources and money to fund their food/clothing/shelter.
To solve this issue, India started issuing 5 paise- Refugee relief stamps. They had to be affixed on all letters/telegrams/money orders, etc.
Postcards/Registered newspapers and a few other categories were exempt.
Additionally, a 10 paise stamp was required for revenue transactions. (Stamp duty)
Refugee relief stamps were generally not printed as separate, rather they were printed on top of general 5 Paise issue stamps as the crisis emerged rapidly. (A 5 paise stamp would be overprinted with "Refugee Relief", no separate stamp was produced in the beginning. Later, specific refugee relief stamps were printed)
Other methods were also used to fund the relief:
- State govts implemented local taxes on transport (buses, etc) (Some transport orgs continued the surcharge long after the war ended.)
- Additional commercial/excise taxes.
- Surcharge on Entertainment. (Cinema tickets, theatre plays, etc)
- Additional taxes on State lottery tickets. (W.B.)
All these taxes/levies eventually strained Indian economy for quite some time to come. The five-year plan was halted and re-written adjusting goals as per the prevailing circumstances. Railways prioritised food/medical supplies/shelter transport, this affected the industries, especially in the eastern states.
These were some of the ways in which India funded the refugee relief during the 1971 war.