SECTION -1 (CHAPTER - 3)

GENERAL DISCUSSION ON BUDGET

Reply to debate, Lok Sabha, 10 June 1971

Sir, after this very long, useful, constructive and at times rambling debate of 20 hours, I must express my gratefulness to those members who participated in this debate. The debate has disclosed two types of arguments. One is the line of argument based on the examination of economic policies and objectives. The second category of arguments is based purely on party lines and thus negative in nature. I mainly propose to deal with the first category of arguments which went into the examination of the economic policies and objectives, which are really important. If I get some time at the end, perhaps I may deal with the political arguments because, as a matter of fact, I would like to deal with them.

Let me begin with one statement. In my budget speech I have very humbly stated that I have not been able to achieve all the objectives that I have set before me; not only I have not achieved all the objectives but I am not sure whether I will be able to reconcile all of them. Therefore, I have not made any big claim in my budget speech. But, at the same time, if the Hon. Members would take care to read my budget speech, I have very clearly and categorically stated the objectives and the directions in which we want to go.

In the debate on budget I noted one remarkable thing that is good for the country. From all sides I find a surprising unanimity on the basic principles to which our economic policies or objectives should be directed. This is a good thing for the country, a country which is going to be run on democratic basis, particularly in view of the emergency on our eastern borders. It was very interesting to see that though some Hon. Members wanted to criticise my budget and its performance, with which I may not agree, at least the test they put for the examination of this budget was the same. Even coming from the young Maharaja of Gwalior, it was very interesting to see that he was prepared to call it a pro-capitalist budget. That is something which I welcome, as it comes from the Maharaja. It is very refreshing. Perhaps he has on him the impact of modern trends and if he maintains this progress he will realise that he is on the wrong horse. As a good horse breeder and a good rider possibly, he has chosen a wrong horse. Perhaps very soon, I hope he will come to realise that he has a place somewhere else.

But let me come to my main point that there was a refreshing agreement about the policies. I know that there is criticism about taxation and if you go into the individual or particular levies there can be views, for and against it. But if we generally look at the problems that we have to face in this country and tackle, it will ultimately be found that there is no other alternative. As far as I am concerned, I can say that I have consciously gone through each and every item and tried to see its effect. Unfortunately, as the tax structure stands today, the indirect tax is a major source of income or taxation in this country. Naturally, therefore, it has to go into a larger number of items. But, while selecting items, I have taken much care to see that the lower strata, the lower income group, the poor man is not touched, as much as possible. Of course, it is very difficult and physically impossible to say that nothing is touched. It was not possible for me to do so. I will come to that aspect a little later.