After 48 years, it’s the same old story

Font Size

Print

Feedback

Email

Discuss

Bookmark this Page

Digg

My Yahoo

Fark

del.icio.us

Newsvine

Reddit

: During the 10960s, when the economy was going through a difficult phase, Budgets were closely associated with Morarji Desai. He presented nine of the total twelve Budgets — including both interim and final. In the past two years, the government has repeatedly emphasized that growth is faster than the national records show. Desai had the same problem.

In 1960-61 Budget, he referred to industrial growth of 7.4%, an “increase in production of iron, steel and aluminium which together accounted for over a third of the rise in the index of industrial production”. Referring to the problem that arises during periods of such rapid growth, Desai claimed that “actually, the increase in industrial production has been larger than the index would suggest, as the industries which have come into existence after 1951 are not included”.

Budget for 1961-62 was formulated with the objective of raising resources for the 3rd Plan, which aimed at increasing the ratio of tax revenue to national income from 8.5% to 11%—not much below 11.4% in 2006-07. The tax policies were aimed to “discourage imports and encourage exports” and also to “discourage consumption and encourage investment.” Desai admitted that “There can be no respite from sweat and sacrifice”. That theme has gone away with the vestiges of socialist raj, but the bit about more exports and less imports is still.

For 1962-63, Desai presented an interim Budget in view of the elections. Thereafter, he detailed the final Budget, briefly explaining some of the important variations with respect to the interim one. One such instance was a provision of Rs 25 lakh for railway freight equalisation subsidy to promote location of industries at great distances from coal fields.