NOTE 57 target figure of 1.63 million tonnes, only 179,000 tonnes could be procured. It has become clear that without an effiective procurement policy of marketable surplus and an efficient public distribution system the price situation of food grains will not improve; increase in production by itself is the wrong means to this end. Industrial production during the year 1973, according to the latest figures available, seems to have stagnated if not declined. During the first three months of the year it was stagnant and thereafter declined by 1.3 per cent. There was a large-scale decline in the output of iron and steel, cotton, fertilizers, coal and so on. Steel output from the main integrated steel plants is not expected to be more than 4.5 million tonnes, as against the target of 5.4 million tonnes which was itself reduced from an earlier target of 7.89 million tonnes. Prices of all industrial goods maintained a steady increase during the current year.There was an increase of 7 per cent in chemicals, 10 per cent in machinery and 21 per cent in other manufactures. Money supply with the public increased tremendously during the current year: its volume expanded from Rs 2868 crores in 1961 to Rs 10,098 crores in December 1973. Table I gives the trend of the money supply during the last few years. 1973-74 was one of the worst years. While presenting the last budget (for 1973-74) the government seemed to show awareness of the difficult economic situation but the budget proposals were not designed to "meet it. The Government of India, as usual, followed the conventional types of tax measures in favour of the rich property-owning class. An analysis of the budget for the last few years will show that budgetary polices of the government are directed at achieving a substantial transfer of income from those who consume (largely the masses of consumers belonging to the middle and poorer sections of the population) to those who have the propensity and capacity to save and invest (largely landlords, rich farmers, big capitalists and profiteers). The budget speeches of Finance Ministers, from time to time, have clarified the outlines of the tax policy of the Government of India. Though progressive tax policies have been consistently sacrificed at the altar of rapid economic development, it was not until | the Second Five Year Plan that the Government deliberately followed a policy of widening and deepening the tax base. It marked the beginning of a double-edged attack^ of indirect taxes and inflationary financing, on the middle and poorer sections of the population. 1974-75 Budget The budget for 1974-75 is nothing more than a collation of calculations based on the age-old policy of promoting the interests of the property-owning classes. It shows revenue receipts of Rs 5641 crores compared to Rs 5079 crores for 1973-74 and revenue expenditures amounting to Rs 5408 crores compared-to Rs 4778 crores for 1973-74. Capital