By J. F. J. Toye
Of the various other ways within which economists have attempted to examine public expenditure, the main suitable to Indian fiscal improvement is that which hyperlinks the extent of public expenditure with the speed at which the kingdom can gather capital. The summary conception of this hyperlink, besides the fact that, has to be complemented through a ancient account of the measure to which a kingdom accumulation coverage was once understood by way of Indian coverage makers, and of the opposite (often inconsistent) parts within the financial technique of Indian nationalism. After trying to offer money owed either one of the summary thought and of the institutional and coverage context during which it used to be utilized, this ebook analyses unique empirical information on public expenditure in India among 1960 and 1970. the genuine development price of public expenditure, its useful and fiscal composition on the all-India point are offered, and the powerful distinction among the styles of the 1st and final 5 12 months sessions is elucidated. The impression of the 1965-67 droughts and undesirable harvests in generating this distinction is classified.
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Additional resources for Public Expenditure and Indian Development Policy 1960-70
For example: (1) States have powers to tax, to create money and therefore to guarantee their borrowing more substantially than can private agents. Taxation, money creation and state borrowing could be used to reduce inessential private consumption below what it otherwise might be, and thus create surplus in the state's hands for investment. If the inessential private consumption which is prevented with these fiscal instruments is the inessential private consumption of the rich; and if the state investment made possible by them benefits the mass of the people; then the distribution of income and assets in the economy will be improved.
16 Mitra (1977), pp. 92-103 and 170-83; Frankel (1978), pp. 113-55, 187-200, 335-40. 17 Toye(i978), p. 224. g. Sachs (1964), pp. 106—25; Chattopadhyay (1970); Martinussen (1976). 27 28 General The nationalist tradition holds that British laissez-faire policies were the cause of India's failure to develop economically, and that this fact gave the anti-colonial struggle its 'progressive' character. It is fair to say that the potentialities for development in nineteenth-century India, and, therefore, the scope and the sophistication of the policies that would have been needed to realize them, remain very controversial among Indian economic historians.
C. Neogy, and another member, G. L. 39 Nor had the case for a state accumulation policy gone by default, thanks to Professor K. T. Shah. C. sub-committee on Public Finance, he had already pointed out that 'apart from other considerations, questions of finance and the necessity for increasing revenue for the nation-building activities of the State made it essential' for key industries to be state-owned, 36 37 38 39 Thakurdas(i945), pp. 58, 94-8; Shirokov(ig73), p. 3. Kidron(i965), pp. 103—12, cf.
Public Expenditure and Indian Development Policy 1960-70 by J. F. J. Toye