The Government activities are numerous and varied; they are far different today than what they were on the eve of Independence. The Government absorbe a sizeable proportion of nation's resources and naturally affects the economic life of people significantly. A proper understanding of it, therefore, would go a long way in the allocation of resources among public and private sectors.
One of the earliest studies, of course not in India, was the pioneering work done by Solomon Fabricant for the United States of America The Trend of Government Activity since 1900-1952. It indeed paved the way for further researches in the United States and other countries. Our study, is a modest step in that direction. It covers the period 1951-1975. It emphasizes the trend of government activity and attempts to explain the factors that caused it. No attempt is made to predict the future trend of government activity as it bristles with a number of political and ideological factors. We have tried to be as objective as possible in analysing the trend, since the subject is such, that one can find many shades of opinion as one can conceive.
The study starts with the comparison of government activity in the economy of 1951 with that of economy in 1975. Then it delineates the issues discussed in the subsequent chapters. The second and third chapter discuss the absorption of resources, labour and capital respectively. The fourth presents the functional distribution of input and takes the stock of current governmental activities. The fifth chapter examines the factors affecting the intersiate differences in government activity. The last chapter presents the summary of findings.
The idea of doing this type of work had entered my mind as early as 1972, when some of the reviewers of my first book-The Growth of Public Expenditure in india: 1872-1968-had expressed the desirability of this study. I took their suggestion seriously and started working. But, with in a couple of months I had to discontinue it on account of my assignment at the Sixth Finance Commission as Joint Director. I started working after my return to the University.
In completing this study, my first debt of gratitude goes to the authorities of M. S. University of Baroda who gave me necessary financial help. I am thankful to Shri K. A. Amin, The Registrar of M. S. University of Baroda for his encouragement and help.
Professor V. N. Kothari, Head, Department of Economics, Professor R. N. Mehta and Professor A. G. Javdekar, ex-Dean and Present Dean respectively have helped me in various ways. I am grateful to them.
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