34 SOCIAL SCIENTIST don of sectoral demand generated directly and indirectly by an increase in government expenditure, and the structure of the excess capacity obtaining in the economy. We have attempted here, to indicate empirically the level to which deficit spending can be pushed up without causing inflation and also to identify the sectors through which inflation gains its momentum. For our exposition we have divided the paper into three sections. In the immediately following section we briefly discuss the data and the methodology used for the exercise. In section 2, we discuss the results of the study. In the final section we highlight the major conclusions and attempt to relate them, to the extent possible, to more recent time situation . To carry out this exercise we require to know the structure of sectoral direct demand generated by the Union Government expenditure. Given the direct demand, we have to estimate the induced demand generated in the TAE Direct Commodity Require \LE I ment of Union Governmc •nt Expenditure of Rs. 10< 0 (At producers' prices) Sector Name Commodity Salary Combined No. Purchases Disbursals Expenditure 1. Agriculture 2.512 38.784 16.836 2. Mining 4.608 0.419 2.953 3. Food Products 1.356 12.9^2 5.947 4. Textile Products 3.629 4.971 4.160 5. Wood Products 0.076 0.342 0.180 6. Paper & Printing 0.995 0.644 0.856 Leather Products 0.075 0.319 0.172 7. 8. Rubber & Petro. Products 2.758 • 0.807 1.988 9. Chemicals 1.456 1.391 1.430 10. Non-metalic Minerals 0.173 0.^84 0.217 11: Metals & Metal Products 3.366 0.419 2.202 12. Non Electrical Machinery 4.410 0.137 2.723 13. Electrical Machinery 6.833 1.027 4.541 14. Transport Equipment 18.261 L246 11.541 15. Other Industries 4.831 1.568 3.543 16. Electricity 2.366 1.694 2.096 17. Construction 27.135 6.665 19.051 18. Riy. Transport 9.067 3.373 ^ 6.819 19. Other Transport 1.701 2.J555 2.078 20. Other Services 4.390 20.281 10.66fr 100.0 100.0 100.0