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  PUBLIC EXPENDITURE AND INDIAN DEVELOPMENT POLICY  1960-1970
 

Public Expenditure And Indian Development Policy 1960-1970

by Toye

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  Of the many different ways in which economists have tried to analyse public expenditure, the most relevant to Indian economic development is that which links the level of public expenditure with the rate at which the state can accumulate capital. The abstract theory of this link, however, must be complemented by a historical account of the degree to which a state accumulation policy was understood by Indian policy makers, and of the other (often inconsistent) elements in the economic strategy of Indian nationalism. After attempting to provide accounts both of the abstract theory and of the institutional and policy context within which it was applied, this book analyses original empirical data on public expenditure in India between 1960 and 1970. The real growth rate of public expenditure, its functional and economic composition at the all-India level are presented, and the strong contrast between the patterns of the first and last five year periods is elucidated. The effect of the 1965-67 droughts and bad harvests in producing this contrast is assessed. At a more disaggregated level, studies are made of changes in the degree of centralization of public capital formation and public saving. Differences between individual states in their rates of growth of real public expenditure, public capital formation and public saving are also examined, and possible explanations considered. It is argued that the public expenditure data are consistent with a specific view of the way state accumulation took place within the context of the Indian nationalist economic strategy. The attempt to create a modern structure of output, without using foreign trade to divorce domestic production from domestic demand, and without control over domestic demand either, was superimposed on the basic task of state accumulation and made its achievement progressively more difficult. ISBN - 9780521059282
 


Pages : 292
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