New Packaging for Old Wine

TH E rate of saving of the household sector has declined from the peak level of about 7 per cent of personal disposable income in 1963-64 to about 6 per cent at present. For financing an accelerating increase in investment, this rate needs to be raised and the marginal rate of saving needs to be, in our context, about 12-15 per cent. Further, it is necessary that fresh saving be, in form of financial assets, for it is onlythen that Government will be able to control its allocation.