I should like now to make a few observations on the budget. This Budget marks a turning point in the history of our country. It is no use attempting, as some of my friends have done either to Deprecate the budget very strongly or to suggest that we are not witnessings a new revolution in our methods of fiscal training and technique. I want it to be quite clearly pointed send to my friends that we are now facing the lean years of Indian finance. Hitherto we had revenue surpluses which were a form of public saving and which were meant to be utilized for capital development. Hereafter this form of revenue surplus would not be available. We have, therefore, to find out ways and means of implementing our great programme of national reconstruction at minimum cost. My point is that the deficit on revenue account would be of the order of about Rs. 10 to 20 crores. Here, let me point out that I do not agree with those of my friends in the Finance Department who have attempted to suggest that Rs. 9 or 18 crores which are obtained from Pakistan should be put to the revenue side of the budgets they are to be put on the capital side. But that does not seriously alter the trend of my argument. What I am suggesting is that we would have to be pre pared for a deficit of a much higher order even on the revenue side. That itself should make us realise that there are very many problems which we have to face and that we have to undertake ways and means of increasing the resources of our country so that it might be possible for us to have a greater amount of surplus or a greater amount of public saving for the purpose of financing capital development. The Finance Minister in the course of his speech, Mr. Deputy Minister, pointed out that the deficits during the past two years were of the order of Rs. 83 crores. I venture humbly to disagree with him because I feel that when we are talking of deficits, we must take into account the overall deficit in-curred by the Central Government and that would be of the order of Rs.200 crores. During the years of relatively light expenditure we had a shortfall of about Rs. 200 crores.Undoubtedly, now when we are going to have a very great amount of expenditure, we might have a greater amount of deficit and we would have to find out ways and means of trying to meet our capital expenditure. Some Members have pointed out that deficit financing is good; others have pointed out that it is poison. One hon. Member who preceded me pointed out that it could be taken like a tonic. Now, I am not willing to enter into the merits of deficit financing or demerits of deficit financing in an academic spirit. The time has now come when we should face realities. I do suggest that we have to indulge in deficit financing because without indulging in deficit financing it would not be possible for us to indulge in capital expenditure on such a large scale. But when we are talking of the scope of deficit financing, I would like to place before the House and the Finance Minister the two great limitations which face us.The first limitation that faces us is that concerning the internal price level. The hon. the Finance Minister referred to the cost of living. He said that he was going to keep a watch over the cost of living so that it may not shoot up within a short period and make a mess of the plans of capital development. But there is another limitation which has also to be borne in mind, a limitation which has not received as much notice as it should have done in all the discussions that have taken place on deficit financing. That limitation is the external limitation or the limitation which arises on account of our balance of payments position. I think this is as important. Mr. Deputy Speaker, as the internal price level and I should like to elaborate that particular point a bit more because I feel that a time will shortly arrive when we might have either to reconsider our policy or might even have to leave the sterling club of which we are a member. The second serious limitation is as serious as the first. What would be the consequences of deficit financing on our balance of payments? The Finance Minister in his budget speech points out that so far as the balance of payments position is concerned, they have now, whether it is by accident or design, a favourable balance and they have contributed about Rs. 63 crores to the dollar pool during the past six months. But the moment we indulge in deficit financing we have to be prepared for worsening of our balance of payments. Submit