Speeches in Parliament Vol. (IV)-175

Shri Yashwantrao Chavan : This is what has been said by somebody on the Opposition side. I am merely quoting it, I am not doing anything more than that.

So, on the ground of special provisions of the vital sectors, on the ground of social justice, on the ground of tax efforts, it does not impose more burden on the lower class of people, weaker people or poor people. If you take these three criteria. I would say that this Budget has passed the test of the time and here is no doubt in my mind about it. The Finance Minster certainly has given a good budget.

I said there are some special features of the Budget. The Finance Minister has given concessions in the direct taxes, but certainly added some more burden on those who can bear it through indirect taxes. He has done that and I do not want to repeat it again. I mentioned the special features also. These are two innovations - the social security bonds and the capital investment bonds. These are the new ways of meeting the needs of the nation, at the same time giving opportunity to the people who can afford to invest in a particular way. So, these are the two new types of bonds this year. Last year there was another type of bond. This year...

Shri Kamal Nath : James Bond!

Shri Yashwantrao Chavan : ..... These are the new types of bonds.

Sir my main position is that this Budget has made a realistic assessment of the Indian economy, the world situation the growing inflation and the Finance Minister certainly kept some deficit financing. About this deficit financing I found that even in the developed countries they talk about ‘balanced budget’. The present President of America won the election on the slogan of ‘balanced budget’.

But the way it is unbalanced today, they ridiculaced calling it as “Reganomics.”

Another person who was talking about the ‘balance budget’ is the former Prime Minister, Mr. Morarji Desai, and the deficit financing that he had shown in his budget of two years when the Janata Government was there, never before there was that type of deficit financing.

An Hon. Member : They have lost their balance.


Shri Yashwantrao Chavan : I quite agree with you that they have paid a price for if it that is what you mean. But this balanced budget is mainly given for the capitalist countries. Particularly in developing countries where the problems of lower section of the society, the weaker sections of society, have to be taken care of it necessary we have to go in for deficit financing, we could not have a dogma of not having deficit financing. Of course you will have to take wise decisions, you have to use discretion. (Interruptions). A limit should be there, a manageable and bearable limit. It is not only managable and bearable limit and I sure the limit that the Finance Minister has accepted is certainly manageable an bearable.

Therefore, this decision of his is basic. If you see that broad features of the Budget - taxation system, deficit financing, investment programmes, new innovation steps that he has taken, I think everybody who has the interest of the cause - of the nation nearer to his heart will say that the Finance Minister has done well.