SECTION - 1 (CHAPTER - 4)
DISCUSSION ON BUDGET, 1971
Reply to debate, Rajya Sabha, 14 June 1971
Mr. Deputy Chairman, Sir, I must apologize to the House that I was not present during all the days when this budget was debated in this honourable House, as I had to give a reply to the debate in the other House. I have heard some speeches today, which can possibly be said to be sort of a sample, of the general criticism of the budget. At the same time, I must say that I have read some of the speeches which were delivered in this honourable House. I find that certain points have been made, and I would like to summarize the line of criticism. It is better that I select some points for offering clarifications if not for reply…
Some Members especially Shri N. G. Goray, said that, this budget does not fulfill the promise of garibi hatao. Some said that it is a routine budget. Some said that this is an uninspiring budget. Others said that the corporate sector has been let off. Some criticized that there is a crushing burden on the common man and the middle class. Another criticism is that there is discouragement to investments and savings. Some said that it does not touch the rural rich.
There have been several suggestions of raising the income-tax limit to Rs.7500. Some people have made a suggestion about economy in the administrative machinery expenditure; some suggested 5 per cent; some suggested 10 per cent. There was criticism of the performance of the public sector undertakings. Another general criticism was that the deficit left uncovered is under-estimated. Some said that the employment programme was merely a farce; the provision will not be utilized, as the time is too short. The last point which has been made is that the nationalized banks have tightened their credit and that their performance has to he improved. These are some of the major points that have been made against the budget.
Sir, I heard the speech of Mr. Goray very carefully. I heard the speeches of others also very carefully. Mr. Goray set certain tests for examining the budget, and he quoted from my budget speech to show that we have accepted certain norms. That is very fair attitude. Sir, I would like to read those parts again. As he has very rightly said, I have stated in-my budget and I stand by that thing:
“The fiscal policy, however, is not a matter simply or even primarily of raising the resources to meet the inescapable demands on the national exchequer.....”