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

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Andhra Pradesh- More Powers for Police Raj

thus provide the solution to the problem of "the narrowness of the market". In the draft Sixth Plan the Commission had itself ruled out any major redistributive contribution by government expenditure and had explicitly stated that the fruits of government investment even in social in- frustructure had "accrued largely to the relatively affluent". On the other hand, because of the continuous sharp rise in the government's non-developmental expenditure, including most notably that on subsidies to rich farmers and industrialists and businessmen, even modest increases in development outlays call for further large reliance on indirect taxation and on government borrowing from the banking system. As this year's experience shows, the inflationary potential of government expenditure financed in this manner is such that it cannot be sustained for any length of time. Clearly, Indian industry remains as shackled as ever by "the narrowness of the market" arising from mass poverty and the ever-present inflationary threat, making the Planning Commission's easy optimism about industrial growth less than credible.

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