Prime Minister of India the dissolution of the Soviet Union, India was on the brink of bankruptcy, so, Rao took steps to liberalise the economy, and appointed Manmohan Singh—an economist and a former governor of the Reserve Bank of India—as finance minister. Rao and Singh then took various steps to liberalise the economy, these resulted in an unprecedented economic growth in India. His premiership, however, was also a witness to the demolition of the Babri Masjid, which resulted in the death of about 2,000 people. Rao, however, did complete five continuous years in office, becoming the first prime minister outside of the Nehru—Gandhi family
Prime Minister of India exercise some control over affairs of the parliament. Article 75 of the Constitution of India confers the parliament with the power to decide the remuneration and other benefits of the prime minister and other ministers are to be decided by the Parliament. and is renewed from time to time. The original remuneration for prime minister and other ministers were specified in the Part B of the second schedule of the constitution, which was later removed by an amendment. In 2010, the prime minister's office reported that he/she does not receive a formal salary, but was only entitled to monthly allowances.