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

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From 50 Years Ago: Reappraisal.

Editorial from Vol X, No 19, May 10, 1958.

The results of the Planning Commission’s more realistic appraisal of the Second Plan had been presented to the National Development Council which met over the week-end... So long the financial target of the Plan had been kept unchanged and only the physical target allowed to suffer cuts which were inevitable because of the rise in prices. Now there is a more realistic assessment in that the attainable target has been brought down to Rs 4,500 crores for the Public Sector. The original target, however, has not been quite given up, for the balance of Rs 300 crores has been retained as supplementary target to be implemented “only if the requisite f unds are available.” Needless to say, this concession has been made with due emphasis on the need and exhortation for more strenuous efforts to raise resources. The limit for deficit financing which, it had been thought at one time, would be brought down, it has now been decided to leave unchanged at the original figure.

The revision is the result of a fresh assessment of prices and costs. Of course, the Planning Commission could not be blamed for not foreseeing the rise in prices, internal and external. But there had also been a serious underestimation of the internal resources required for attaining the physical targets and an even greater underestimation of the foreign exchange that would be required. The latter is now put at a little more than Rs 1,700 crores, compared to the original estimate of Rs 1,100 crores, though the financial target of the Plan remains unchanged at Rs 4,800 crores.

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