In the case of conveyances, the exemption will be limited to Rs.25,000 in the aggregate. The existing provision in the wealth-tax Act, excluding from aggregation the assets transferred by an individual to the spouse or minor children, is being done away with. Thus there would now be an aggregation of the wealth of the wife and minor children, with that of the husband when assets are transferred to the former by the latter and this aggregation will be irrespective of the levy of gift-tax on such transfers. A similar provision is being made in respect of conversion of assets of individuals into those of Hindu undivided family. In fact in this budget a considerable dent has been made in the abuse of the institution of the Hindu undivided family by, first subjecting the transfer of personal property to a HUF by the levy of gift tax and then by aggregating with the property of the individual, for purpose of wealth tax, the proportionate share his wife and minor children in the property so transferred to the Hindu undivided family.
Now, Sir, the question is asked whether we have made any effort for the growth of the economy. That is another question. If we have to tackle the problem of poverty, we have to see whether in different spheres, we are making proper efforts for the growth of the economy. That is really speaking the most important point. I would like to say that if we see the budget provisions compared to the level of actual expenditure of last year we find that this year we have made an additional provision, according to me of, nearly Rs.375 crores or a little more, not less. If you take the provision for what is now technically called non-plan expenditure, we have a provision of Rs.50 crores for rural employment and Rs.25 crores for urban employment.
Really speaking, if we have made provision for employment, we are thinking in terms of having an employment programme which would ultimately create real assets in the country. When we start work for having wealth, like having percolation tanks, having bunds, building roads, etc., certainly it is creating a new source of wealth in the country. We have made an additional provision of really Rs.97 crores, in the investment of public undertakings. Then, Sir, the criticism is that we make the provision but do not spend it, ultimately we come with a shortfall. That is certainly the problems somebody has said, that this provision of Rs.50 crores is also going to be a sort of farce. This is a light-hearted criticism.
We are taking steps to see that, this is properly made use of. At the same time this provision of Rs.50 crores and Rs.25 crores is certainly a very insignificant amount. I myself concede it. When you say that even this is not going to be spent, what was the use of providing more? Ultimately we will have to create more administrative capacity to work the programmes which can absorb these funds, and possibly gradually we will go on increasing this provision according to our requirements in this matter. So, Sir, we have taken enough care to see that provisions are made for the growth of the economy. At the same time we have also tried to see that the poor man is also helped. Some people have said that there is a crushing burden on the common man. I must say it will be an impossible task not to cast any burden on the common man. Indirect taxation is of such a nature that incidence of something or the other ultimately reaches the common man, poor man, in the rural area also. I am not blind to that situation. Ultimately what is the test? Ultimately as an objective test what have I to show? I would like to give certain information about that, the impact on the common man. What are the most important consumer goods which need to be spared was the main consideration with me, because you cannot spare everything. One of the tasks before me was also that I had to raise large resources, because there are serious problems before this country. Some provision had to be made for employment, certain provision had to be made for refugees, and if I had left the entire deficit uncovered, there would have been terrible pressure on prices, there would have been inflationary pressure.’ I could only leave that much deficit uncovered which the economy would be able to bear. I think it can be of the magnitude indicated in the Budget.
