Page:Indian Journal of Economics Volume 2.djvu/625

 ECON'OMI( DEVELOPME1V 607 course, that taxation for this latter purpose should be lmited to the sources of funds which I have named. In the chief finance of conclusion I proposals economic would like briefly to summarize made iu this paper for the development. After showing that the financial position of India is extraordinarily sound, I sugeste] that the profits of the com- mercial services might be reserved poses of economic development, and deficit on the ordinary civil anJ military expenditure should customs profits of the Paper be made duties. coinag,e up by increased As sources beyond the Standard Reserve, and Currency Reserve, for various pur- that the small many crores of rupees; but to obtain the enormous sums of money needed for intensive development on the lines of western couutries recourse must be had to borrowing on a very large scale. The public debt system as a whole 'in India being top heavy, the initiation of provincial loans was recommended, and the gradual enlargement of the market for them by suitable propaganda. Certain works could be carried out by local authorities or boards of trustees created a /w, and both should be given ample funds for the purpose, or the opportunity of raising them by loans. Finally I referred to the importance of the proper correlation of different development measures so as to obtain from proposed that them the maximum in connection with advantage; and I the planning of development measures in any region, sources of wealth at present partly or wholly unaxed should be searched out and be made to bear their just share of the burden of taxation. Instances were given of sources of taxation--perhaIs of capital funds the requirements of the the fiduciary portion of coul safely yeld very