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

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Exports-Ignorance Is Useful

Plan outlay of Rs 1,960 crore. The quantum of deficit financing increased thereafter in every Plan till the Fifth Plan, though its proportion to total Plan outlay fluctuated. At Rs 1,170 crore, it covered about 25 per cent of the outlay of Rs 4,672 crore in the Second Plan. The proportion came down to 13 per cent in the Third Plan and stayed at that level in the Fourth Plan (Rs 2,060 crore out of a total outlay of Rs 16,160 crore). In the Fifth Plan deficit financing came down to Rs 1,354 crore and was only three per cent of the total outlay of Rs 39,303 crore. Presumably encouraged by this experience, the Planning Commission provided for deficit financing of only Rs 1,000 crore in the Sixth Plan which was a mere one per cent of the total outlay of Rs 97,500 crore. The Planning Corn- mission's expectations were, however, totally belied and in just the first two years of the Plan, 1980-81 and 1981-82, deficit financing was Rs 6,109 crore, which came to about 18 per cent of the total actual Plan outlay of Rs 33,043 crore in these years.

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