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

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NEW DELHI-Welcoming Foreign Private Capital

holding of inventories), power shortage, etc; if not also in terms of oligopolistic practices on the part of our industrial leaders. Tax concessions are not a remedy for these ills. On the other hand, large tax concessions, such as have been granted at high income levels, will stimulate the demand for luxury goods. The motor car industry, for example, will have a double impetus by way of concession in income taxes and by way of reduction in excise duties. To be consistent, the government may perhaps help bring down the price of petrol, too! The Budget for 1976-77 will increase inequalities of income and consumption in the society. Whether by itself it will stimulate growth or not is not certain. If the above analysis is correct it will not. Belief to the contrary betrays a denial of the principle of socialism and an acceptance of the dominance of the private sector. The Budget seems indeed to be an irrational surrender to forces which are destined to lead the economy away from the avowed objectives of planning.

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