ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Satyashodhak Samaj aud Peasant Agitation

November 3, 1973 What is dear to my mind is that practically no state is free from the incidence of natural calamities, the financial impact differs from state to state and is only remotely related to the level of its income and its. revenue resources and that the Centre has to bear the main brunt of the relief expenditure, I do not know to what extent the states will be in a position to make a significant annual contribution to such a iund, while f am fairly certain thai t'v III.KII contributor will have to be the Central government. At the same time there is something to be said lor the states escaping natural calamities in any given year making a contribution to the relief expenditure incurred by those who are the victims of such calamrio. during that year. There is also some thing to be .said for treeing the Central annual budgets from suffering the strain of taps and downs due to the smaller or larger expenditure they have to incur on giving relief to the states afflicted bv natural calamities. I believe it is possibly to identify an insurance principle in the incidence and reliel on account of natural calamities, the premium to be contributed commonly bv the states and Central governments being determined by the history of distribution of such expenditure between the two categories of government. Even then, some extra expenditure outside the income and assets of the national bind may become necessary in exceptional years, but this does not militate against the case for establishing such a Fund. I would add however that expenditure on such relief should normally take the form of grants, and not loar.v and it some portion has to take the form of loans, adequate arrangements should be made for the amortisation of such loans primarily by the Central govern- ment.

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