Growth, Equity and the Budget

THE Fourth Plan was launched with the objective of putting the economy back on a steady growth path. Against this objective, economic stocktaking at the end of the Plan period is not at all a pleasant task. The Fourth Plan projection of an annual growth rate of 5.5 per cent was attained only in 1969- 70. In the subsequent years, the rate decelerated, culminating in a decline of 1.7 per cent in 1972-73. Industrial production increased at an average annual rate of about 5 per cent during the quadrennium ending with 1972-73; however, in 1973-74 the index of industrial production is unlikely to even stay at the 1972-73 level. Agricultural production is hopefully expected to register a substantial increase; in 1973-74 so that the overall growth of national income in the year may come to about 6 per cent. Taking the Fourth Plan period as a whole, the average annual rate of growth of national income is unlikely to exceed 3.5 per cent.