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

By J. F. J. Toye

Of the numerous other ways within which economists have attempted to examine public expenditure, the main appropriate to Indian financial improvement is that which hyperlinks the extent of public expenditure with the speed at which the nation can gather capital. The summary idea of this hyperlink, in spite of the fact that, needs to be complemented by means of a historic 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 monetary technique of Indian nationalism. After trying to offer bills either one of the summary concept and of the institutional and coverage context in which it was once utilized, this e-book analyses unique empirical information on public expenditure in India among 1960 and 1970. the true progress price of public expenditure, its sensible and fiscal composition on the all-India point are offered, and the powerful distinction among the styles of the 1st and final 5 yr classes is elucidated. The impact of the 1965-67 droughts and undesirable harvests in generating this distinction is classified.

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The latter repairs this neglect, and in doing so discovers that 'the political and social conditions for national state-capitalist expansion - requiring limitations on imperialist influence while retaining the conditions of capitalist exploitation - create an explosive contradictory regime'. 42 The former holds that a state accumulation policy can always succeed, provided only that it is fully understood and firmly willed by a government. The underlying assumption, that every state, regardless of its political and social environment, exercises untrammelled power in all relevant respects, is indeed evidence of a blandly technocratic attitude towards social change.

Roy (1965), pp. 59-62, 56. 41 He got little support, even from 'industrialize^'. The history of the debate on a state accumulation policy is quite consistent with the actions actually taken after independence by the Indian government. With the perspective just presented, the strategic economic policy decisions of the 1950s appear as an epilogue to that history, rather than as a drama in their own right. The principle of an industrializing course was adopted nearly unanimously. The controversy of the time centred on the size of total investments, not their pattern or the desirability of their expected results.

C. never pronounced a verdict before the various disruptions of wartime overtook its activities. C. a coherent attitude towards the policy of state accumulation. C, serves as another exceptionally vivid statement of the nationalist consensus on economic policy. The Second World War, like the First, had emphasized the serious lacunae in India's range of industrial production. Accordingly, it is not surprising to find that the Bombay Plan puts industry's investment share even higher than the actual Second Five-Year Plan; and that the rationale of rapid industrialization in terms of national security is stated with exceptional clarity.

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