ALTERNATIVE APPROACH TO PLANNING 5
rural rich with an obviously higher ability to pay. This is why the increase in the total yield from taxation over the whole period of the First Plan was very disappointing. In 1951-52, tax receipts were stepped up to Rs 774 crores. In 1955-56, the last year of the First Plan, receipts from taxation increased to only Rs 813 crores, showing an improvement of Rs 39 crores as compared to 1951-52. Over these years the proportion of tax revenue to GNP remained below 8 per cent (Table I).
i TAXES IN Ir1 TABL^DIA AS P:1948-49 to ,E IERCENTA1973-74 GE OF GN P
(R< 5 crores)
Year Direct Indirect Total Col 2 Col 3 GNP "Col 4
taxes taxes taxes as % of as % of as % of
Col 4 Col 4 Col 7
1 2 3 4 5 6 7 8
1948-49 239 362 601 39.77 60.23 N. A. N.A.
1949-50 219 394 613 35.73 64.27 N. A. N. A.
1950-51 231 428 659 35.05 64.95 9503 6.9
1951-52 243 531 774 31.40 68.60 10049 7.7
1952-53 248 461 709 34.98 65.02 9357 7.2
1953-54 240 473 713 33.66 66.34 10532 6.8
1954-55 237 523 760 31.18 68.82 9798 7.8
1955-56 255 558 813 31.37 68.63 10342 7.9
1956-57 293 646 939 31.20 68.80 11730 8.0
1957-58 323 789 1112 29.05 70.95 11982 9.3
1958-59 336 817 1153 29.14 70.86 13343 8.6
1959-60 371 914 1285 28.87 71.13 13806 9.3
1960-61 420 1040 1460 28.77 71.23 14976 9.7
1961-62 467 1190 1657 28.18 71.82 15940 10.4
1962-63 574 1408 1982 28.96 71.04 17067 11.6
1963-64 707 1714 2421 29.20 70.80 19654 12.3
1964-65 763 1931 2694 28.32 71.68 229o0 11.7
1965-66 775 2273 3048 25.43 74.57 23921 12.7
1966-67 832 2594 3426 24.28 75.72 27467 12.5
1967-68 859 2779 3638 23.61 76.39 32313 11.3
1968-69 910 3013 3923 23.20 76.80 33006 11.9
1969-70 1043 3353 4396 23.73 76.27 34900 12.6
1970-71 1091 3862 4953 22.03 77.97 39567 12.5
1971-72 1238 4511 5749 21.53 78.47 42163 13.6
1972-73 N.A. N.A. 6660* N.A. N.A. 46000* 14.5
1973-74 N.A. N.A. 7450* N.A. N.A. 49300* 15.1
SOURCE: "Union Budget 1974-75: A Survey", Commerce, March 9, 1974, p 93.
NOTE: Data on taxes collected by central, state and local governments.
* Estimated by the Commerce Research Bureau.
