Survey of Economic Events Abroad- India

Government of India’s Budget for 1961-62: Tb.3 Government of India’s Budget for 1961-62 presented to the Lok Sabha on February 28, 1961, showed a deficit of Rs. 60.60 crores on the basis of existing levels of taxation as compared with Rs. 33.66 crores in 1960-61 (revised estimate). The yield from new tax proposals was estimated at Rs. 63.17 crores (of which Rs. 2.30 crores will accrue to the States). The new proposals were chiefly reflected in indirect taxes. Excise duties have been raised on 14 items and newly imposed on 18 items, and were expected to yield an additional Rs. 28.60 crores. Proposals for the enhancement of custom duties cover 41 items and were estimated to yield an extra Rs. 29.07 crores. Some adjustments in direct taxation have also been made and would yield about Rs. 3 crores. As a result of these tax measures, the estimated deficit of Rs. 60.60 crores on revenue account will be converted into a small surplus of Rs. 0.27 crore.