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

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NORTH-Negative Yield from Land Revenue

price support measure, as is the case at present, has its own implications, especially in respect of establishing an economically sound structure of relative prices within agriculture and between agriculture and industry. While any crash in prices of agricultural products, especially foodgrains, must be prevented, the support prices should not be above the level of cost of production plus a reasonable rate of profit. Procurement as a price support measure should not become an instrument for transfer of incomes to the surplus farmers. There has to be a Clear distinction between procurement and support prices, a distinction which was disregarded during the years of shortage. The support price system, while it ensures remunerative DESPITE a Rs 28-42 crore deficit in the Rs 846.25 crore Punjab budget for 1977-78, presented on March 30, no new taxes have been proposed. The argument seems to be that with Punjab's total tax revenue mounting fast from year to year (the estimated increase since last year being Rs 24.4 crores) and with the per capita incidence of taxation in the new year's budget put at Rs 175.08, further imposts would have looked odd. But the possibility of additional mobilisation of resources later in the year cannot be ruled out. In fact, small doses of taxes levied in the post-budget period are not unusual. In 1976- 77, for instance, substantial augmentation of state revenues was arranged through a 20 per cent increase in bus fares and by raising the sales tax rate.

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