The major way in which a budget can promote growth is by providing for substantial increases in developmental outlays without adding to the forces of inflation. I think, it is an undisputable statement I am making. Nothing would have been easier for a Finance Minister than to leave the Budget more or less as it was presented in March. If I had done it, certainly it would not have been necessary for me to come before the House with any significant proposals for mobilisation of additional resources. But had I done that, would I really have served the purposes of economic growth?
Hon. Members will recall the provision in the Plan that we had made in the Interim Budget at the Centre was at the same level as in the Budget for 1970-71. True, there was a very large shortfall in relation to budgeted outlays last year so that if fully implemented the Plan provision even in the Interim Budget this year would have meant a substantial increase in Plan expenditure over the actual level achieved last year. Even in the Interim Budget, we had made a full provision for Central assistance to the States and the Union Territories. I could have very well called it a day and argued that with the unexpected demands made by the need to provide relief to evacuees from East Bengal, it was no longer possible to provide for an increase in the Plan outlay beyond what was budgeted last year. I have no doubt, however, that had I taken the line of least resistance, this Government would have served ill the requirements of growth at the present juncture. The additional provision of Rs. 155 crores that we have now made for the Centre’s Plan proper is the absolute minimum that is necessary if we are to maintain the tempo of development in keeping with what has been envisaged in the Fourth Plan.
Quite apart from what has been provided in the Plan, it has been said, and said rightly by many economic commentators, that the pace of investment in the economy both in the public and the private sectors needs to be greatly accelerated. I share that view.
Hon. Members would recall that industrial production over the past year has not increased rapidly as one would have desired. Quite apart from that investment in agriculture, family planning, food procurement, roads, shipping, ports and harbours, social welfare and communications could not have been left at the levels provide for in the Interim Budget without retarding the growth in these vital sectors. I agree that having provided additionally for the Plan, the responsibility for ensuring that these expenditure would, in fact, be incurred is all the greater. But it would certainly be our endeavour to make sure that the increased Plan provisions are fully utilised.
Quite apart from the increase in the Plan provision which will certainly stimulate growth, we have also provided Rs. 75 crores outside the Plan for employment in the rural areas and among the educated young and this provision too whether we call it outside the Plan or not is developmental in character and will make for both growth and greater social justice. Technically, it is outside the Plan. But really speaking, it is meant for schemes for educated youth, agriculture and rural works which are developmental in character.