Public Expenditure and Indian Development Policy 1960-70 by J. F. J. Toye

By J. F. J. Toye

Of the numerous other ways during which economists have attempted to examine public expenditure, the main proper to Indian financial improvement is that which hyperlinks the extent of public expenditure with the speed at which the kingdom can collect capital. The summary concept of this hyperlink, despite the fact that, needs to be complemented by way of a ancient account of the measure to which a nation accumulation coverage was once understood through Indian coverage makers, and of the opposite (often inconsistent) components within the fiscal technique of Indian nationalism. After trying to supply debts either one of the summary thought and of the institutional and coverage context in which it used to be utilized, this booklet analyses unique empirical info on public expenditure in India among 1960 and 1970. the true progress expense 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 classes is elucidated. The influence of the 1965-67 droughts and undesirable harvests in generating this distinction is classified.

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83-8. Indian nationalism and accumulation policy 35 even at the high tide of enthusiasm for the 'socialist pattern' in 1956, the role of the state remained vague, the elaborate attempts at precision only emphasizing the underlying fluidity. 47 For all other industries, the Resolution was consistent with any combination of public and private enterprise which the government cared to decide upon. The scope for pragmatism without formal breach of the Resolution was extensive. 48 Despite the pragmatism of government policy on the role to be played by the state in industrialization, after 1955 substantial public investment went to create a heavy industry complex in the public sector.

Rejection should be based on two separate grounds. First, in many less developed countries, and certainly in India, the empirical analysis of class shows that there is no single dominant class. Rather, several distinct classes with conflicting economic interests are co-dominant. Even with the most aggregative class analysis of India, the monopoly bourgeoisie, landlords, rich peasants and other groups like the bureaucracy and the armed forces (which are not strictly classes on Marxist criteria) would have to be separately distinguished as co-dominant classes and groups.

Or under one-man dictatorship . . Training in defence is the first step in the building up of national life . . No nation can regard itself as safe that is not prepared to defend itself . . the supervision and ultimate control of the defence forces should be completely Indianized within, say, fifteen years. It is necessary that Indians should . . 32 These sentiments are echoed again and again in Nehru's own writings and speeches, but with the addition of his own strong preference for collective rather than individual owner 30 Nehru (1961), p.

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