Page:Indian Journal of Economics Volume 2.djvu/348

 834 bear he loan charge. Borrowing for such purposes corresponds to buying on he hire-purchase system, and is objected o by some writers on he ground ha he ease wih which money is hus obtained and he burden largely shifted o he future encourages extra- vagance. This appears o be a one-sided view. Borrow- ing for public amenities of permanen character should, of course, be cautiously exercised only after such horough enquiries as will fully demonstrate he public uiliy or oherwise of he proposed work. If he plan recommended by Basable, which has sometimes been adopted in England, and is he usual practice in India, of consruing all public works of a non-reproductive character out it is obvious that the preseut of revenue, be adopted, generation has. to bear he burden of future generations. ing is constructed to remain in use seventy or eighty years. providing utility and enjoyment for For example, a new school build- substantially and may be expected for one purpose or another for Yet the whole cost has been or two urged country on met by the persons paying taxes in the year during which it was constructed. It may be that, if the expenditure of the whole of a non-reproductive character works certain proportion of he public revenue is se each year o mee he capital cos of such be averaged, a aside works which are constructed rics each year. urn to e a in a number of differen dis- Each disric has heu o wai is share of a year's public revenue for .the buildings it requires, when it will obtain it free of any burden of debt charges. It may be said that in the end the average result is the same by this method as if each district constructed its own works out of borrowed capital and incurred the debt charges, for each district certainly incurs an annual charge which is part .of the cost of the works silofred to other districts,