Politics of Planned Development

Politics of Planned development 1 mark What is Budget? A Budget is a plan that outlines an organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a government allocate resources, evaluate performance, and formulate plans. When was the Indian Statistical Institute established? Indian statistical institute was established on 17 December 1931. When was the Planning Commission set up? The Planning Commission was set up on March 1950 by a simple resolution of the government of India. Name the parts of budget of Central and State government. The budget of Central and State governments is divided into two parts • Non plan Budget • Plan budget Which model did Indian government adopt for the development of the country? Indian Government adopted the socialist model for the development of the country. Who is the chairman of Planning Commission? The Prime Minister is the Chairman of Planning Commission. Which state has nearly total literacy rate? Kerala has nearly total literacy rate. Which rural development programme was started in 1970? In 1970 the rural development programme called Operation Flood was started. Which Five-year plan is under way at present? Eleventh Five-year Plan (2007-20011) is underway at present. Which model was employed in the Second Five year Plan? Mahalnobis model was employed in the Second Five Year Plan. In which year the Green Revolution was launched? Green Revolution was launched in 1967. Who was the founder of Indian statistical Institute? P. C. Mahalnobis was the founder of Indian statistical Institute. Who was the second person to criticize the second plan? K.C.Neogy was the second person to criticize the second plan and he was a members of the Planning Commission. What was the Planning Commission set up? The Planning Commission was setup on March 1950 by a simply resolution of the Government of India.

2 marks Give any one achievement of the First Annual Plan. The achievement of the first Annual plan (1966‐67) was far from satisfactory Agriculture received a severe set back and there was decline in agriculture production. There was shortage of raw materials and as a consequences industrial production suffered. When was setup the national planning Committee and who was the chairmen of this committee? In 1938, a National Planning Committee of the Indian National Congress was set up with Jawaharlal Nehru as its chairman. The committee did valuable work in laying the foundation of Planning in India. Who had political thinker emphasis the Planning in India and when? It was as early as 1934 that the necessity of Planning in India was emphasized by M. Visvesrayya in his pioneering work planned economy for India and a ten year programme of planned development was drown up. What is the Bombay Plan? A section of the big industrialists got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It is called the Bombay plan. The Bombay plan wanted the state to take major initiatives in industrial and other economic investments. How much national income increased during the first plan? National Income over the five years increased by about 18 percent, food grains production went up by 20 percent. Industrial production increased steadily with an average annual rate of about 7 percent. What do you know about the First and Second Plan? The period of first and second five year plans can be called the first decade of planning in India. It began with the beginning of first five years plan in 1951 and completing of the second plan in 1961. During this decade there has been a rapid expansion of Indian Economy. Who had prepared the ten year plan and why? It was a ten year plan prepared by Sheri M. N. Roy. It mainly emphasized on the development of agriculture and consumer’s good industries. Explain the term “development” in the context of the west? Development has different meanings. For the west, it means the standard for measuring development. It is believed that every country would go through the process of modernisation as in the west, which involves the breakdown of traditional social structures and the rise of capitalism and liberalism. Modernisation is also associated with the ideas of growth, material programme and scientific rationality. What is the “left” wing and “right” wing in political context? The left and right terms is used in the politics of most countries to characterise the ideological position of the concerned groups or parties regarding social change and role of the state in effecting economic redistribution. The left often refers to those who are in favour of the poor and downtrodden sections and supports government policies for the benefit of these sections. The right refers to those who believe that

free competition and market economy alone ensures economic stability and that the government should not necessarily intervene in the economy. Mention any criticism of the second plan? The plan was over ambitions and had little relevance to the availability of resources. The existing financial resources were inadequate to allow the targeted investment. Mention the developmental projects undertaken in India's history during the planned development? The largest developmental projects were undertaken during the planned development. It included the construction of mega-dams like Bhakhra- Nangal and Hirakud for irrigation and power generation. Some of the heavy industries in the public sectorsteel plants, oil refineries, manufacturing units, defence, production etc. were started during this period. Mention two effects of Green Revolution? The Green Revolution has following effects: • In many parts of the country there was stark contrast between the poor peasants and the landlords produced conditions favourable for left wing organisations to organise the poor peasants. • The green revolution resulted in the rise of what is called the middle peasant sections. These were the farmers with medium size holdings of lands and got benefited from the changes and soon emerged politically influential in many parts of the country. What are the fears of tribal and environmentalists in relation to iron ore resources in Orissa? The iron ore resources in Orissa lie in some of the most underdeveloped and predominantly tribal districts of the state. The tribal population fears that the setting up of industries would displace them from their home and they would be deprived of livelihood. The environmentalists fear that mining and industry would pollute the environment. Give any two objectives of the Second Five-year Plan. The two objectives of the Second Five-year plan were • A sizeable increase in national income so as to raise the level of living in the country. • Rapid industrialisation with particular emphasis on the development of basic and heavy industries. Among the objectives identified in independent India land reforms did not take place effectively. Explain. Among the objectives identified in India, land reforms were the third in priority. Land reforms did not take place effectively in most parts of the country. Political power remained in the hands of the land owing classes and big industrialists continued to benefit and thrive while poverty was not eliminated completely. The early initiatives for planned development were at best for realising the goals of economic development of the country and well being of all its citizens. The inability to take significant steps in this direction in the very first stage was a political problem. Those who benefited from unequal development soon became politically powerful and made it even more difficult to move in the desired direction.

What is plan holiday? Why some years are called as plan holiday? Plan holiday is the gap between the two five years plan. During some years e.g. 197980, 1990-92 there were no five year plans but stop gap arrangements by way of annual plans. This was due to change in government, due to their lack of clarity about development goals strategies etc. Briefly describe "White Revolution". The White Revolution in Gujrat was started by Verghese Kurien known as the "milkman of India". He launched the Gujrat Cooperative Milk and Marketing Federation Ltd". This federation further launched Amul. The Amul pattern became a uniquely appropriate model for rural development and poverty allevation, what has come to be known as the White Revolution. 4 marks Discuss the main features of India’s Land reform policy? Low productivity of Indian agriculture forced India government to bring about land reforms. These took the form of: • Change in ownership holdings - Just a year after independence steps were taken to abolish intermediaries and to make tillers owners of the land. Legislation was undertaken to immediately abolish Zamindari and to pass the land to the tenants. • Land ceiling: Was another policy to promote equity in the agriculture sector. This means fixing the maximum size of land, which could be owned by an individual. The purpose of land ceiling was to reduce the concentration of land ownership in just a few hands. Land being scarce, concentration of land meant concentration of wealth. Write a note on the Planning Commission? The Planning Commission was set up by a resolution of the government of India in March 1950 in pursuance of declared objectives of the government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. Jawaharlal Nehru was the first Chairman of the Planning Commission. The 1950 resolution setting up the Planning Commission outlined its aim as follows: a. Make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation’s requirement; b. Formulate a plan for the most effective and balanced utilisation of country's resources; c. On a determination of priorities, define the stages in which the Plan should be carried out and propose the allocation of resources for due completion of each stage; d. Indicate the factors which are tending to retard economic development, and determine the conditions which, in view of the current social and political situation, should be established for the successful execution of the Plan; e. Determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the Plan in all its aspects;

f. Appraise from time to time the progress achieved in the execution of each stage of the Plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary; and g. Make such interim or ancillary recommendations as appear to it to be appropriate either for facilitating the discharge of the duties assigned to it, or on a consideration of prevailing economic conditions, current policies, measures and development programmes or on an examination of such specific problems as may be referred to it for advice by Central or State Governments. Organisation: The Prime Minister is the chairman of the Planning Commission, which works under the overall guidance of the National Development Council. The Deputy Chairman and the full time Members of the Commission, as a composite body, provide advice and guidance to the subject Divisions for the formulation of Five Year Plans, Annual Plans, State Plans, Monitoring Plan Programmes, Projects and Schemes. What were the achievements of the Second Five-year Plan? During the period of second five year plan, the national income increased by 19.5 percent and the per capita income by only 8 percent at 1960-1962. The failures of per capita income increased ata stipulated rate. This was due to the phenomenal growth of population which increased at a rate of more than 2 percent as compared with planning commission’s estimate of 13.5 percent annum. In the agricultural sphere the production of food grains increased from 65.8 million tones in 1955-56 to 6 million tones in 1960-61: cotton from 4 million bales to 5.2 million bales, sugarcane from 6 million tones to 8 million tones. There was significant increase in industrial production. The production of iron ore increased by 150 percent; that of steel by 100 percent and that of machines by 500 percent. The overall industrial production gave employment to only 6 million persons as compared with a target of 10 million jobs. Briefly explain the decentralization Planning in Kerala? The important landmarks in Kerala’s decentralization, inter alia, include the transfer of powers, functions, institutions and staff to local self governments (LSGIs), adoption of separate budget documents for LSGIs, decision to devolve 35 to 40% of the Annual Plan funds to LSGIs, launching of People’s Campaign in August 1996, institution – building at different tiers and levels, restructuring of the relevant state level Acts and Rules and submission of State Finance Commission Reports. In 2002-03, the peoples Campaign Programme was renamed “Kerala Development Plan”. The important features of Kerala development Plan are:• Institutionalization and building sustainable capacity in LSGIs • Catalyzing economic development through these institutions • Improving the quality of Services What were the components of land reforms? The components of land reforms were: 1. The first component was the abolition of the colonial system of zamindari. This act released land from the clutches of a class that had little interest in agriculture. 2. The attempts at consolidation of land brought small pieces of land together in one place so that the farm size could become viable for agriculture. 3. Laws were made to put an upper limit or ceiling to how much agricultural land one person could own but people with excess land managed to evade the law.

4. The tenants who worked on someone else’s land were given greater legal security against eviction but this provision was rarely implemented.

The story of development in India took a significant turn from the end of 1960s. Explain. The story of development in India took a significant turn from the end of 1960s. Indira Gandhi emerged as a popular leader. She decided to further strengthen the role of the state in controlling and directing the economy. The period from 1967 onwards witnessed many new restrictions on private industry. Fourteen private banks were nationalised. The government announced many pro-poor programmes. These changes were accompanied by an ideological tilt towards socialist policies. This emphasis generated heated debates within the country among political parties and also among experts. However, the consensus for a state-led economic development did not last forever. Planning did continue, but its salience was significantly reduced. Between 1950 and 1980 the Indian economy grew at a sluggish per annum rate of 3 to 3.5%. In view of the prevailing inefficiency and corruption in some public sector enterprises and the not-so-positive role of the bureaucracy in economic development, the public opinion in the country lost the faith it initially placed in many of these institutions. This lack of public faith led the policy makers to reduce the importance of the state in India’s economy from1980 onwards. Who was P.C. Mahalnobis? Prasanta Chandra Mahalanobis was an Indian scientist and an applied statistician. He is best known for the Mahalanobis distance, a statistical measure. He did pioneering work on anthropometric variation in India. He founded the Indian Statistical Institute, and contributed to large scale sample surveys. He is best known as the architect of Independent India's industrialisation strategy that was embodied in the Second Five Year Plan (1956-61). His most important contributions are related to large scale sample surveys. He introduced the concept of pilot surveys and advocated the usefulness of sampling methods. His name is also associated with the scale free multivariate distance measure, the Mahalanobis distance. He founded the Indian Statistical Institute on 17 December, 1931. In later life, he contributed prominently to newly independent India's five-year plans starting from the second. His variant of Wassily Leontief's neo-Marxist Input-output model, the Mahalanobis model, was employed in the Second Five Year Plan, which worked towards the rapid industrialisation of India and with other colleagues at his institute; he played a key role in the development of a statistical infrastructure. Write a note on Green Revolution? The Green Revolution was launched in 1967 to improve agricultural productivity whereby • Cultivation area was extended. • New and hybrid varieties of seeds were introduced. • Use of fertilizers was increased. • Soil conversation scheme and new agronomic practices were encouraged. The first green revolution was launched in 1967-68 and was mainly combined to the progressive, wheat producing states of Punjab, Haryana and Western Uttar Pradesh by introduction of high yielding varieties of Mexican wheat and dwarf rice varieties. The second green revolution in 1983-84 was extended to eastern and central states

including west Bengal, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh through expansion in supplies of inputs and services to farmers and better farm management techniques. As a result of the green revolution, wheat production increased to more than double and rice production increased by 53%. 6 marks What is the role of National Development Council of India? The National Development Council is one of the key organizations to denote the federal approach to planning in India. The Planning commission suggested the requirement for a body comprising the central and state governments to facilitate the plans to have a national spirit. National Development Council was founded in 1952, with following functions:• To set down principles for the formulation of the national plan. • To think about the national plan as prepared by the Planning Commission. • To evaluate resources needed for executing the plan and to advise ways and means for raising them. • To consider important social and economic matters, disturbing the progress. • To revise the working of the plan time to time and suggest such measures as are necessary for realizing the objectives and targets expressed in the national plan. Therefore National Development Council have very vital role in the proper planning for country’s development process and to run country according to its needs. Write an essay on the Second Five Year Plan. The Second Five-Year Plan was launched on 1 April 1956. It was a much bigger and bolder plan than the first involving a total outlay of Rs.4, 800 Crores in the public sector. It was observed by the planning Commission that, 'the Second Five -year Plan has to carry forward the process initiated in the First Plan period. It must provide for a larger increase in production, in investment and in employment. The principal task was to secure an increase in national income by about 25 per cent over the five years, to increase employment opportunities at a rate sufficient to absorb the increase in the labour force, consequent on the increase in population and to take a major stride forward in the direction of industrialisation so as to prepare the ground for more rapid advance in the plan period to come. Objectives and Priorities: The main objectives of the Second Five year Plan were • a sizeable increase in national income so as to raise the level of living in the country; • rapid industrialisation with particular emphasis on the development of basic and heavy industries; • A large expansion of inequalities in income and wealth and a more even distribution of economic power. Thus the second plan tried to achieve a process of rapid industrial development within a 'socialistic pattern society.' The basic strategy of the second plan was an emphasis on the development of basic and heavy industries. Although this plan was a continuation of the first plan, yet the priority shifted from agriculture and rural development to industry, especially heavy industries. Transport was also given importance. The first plan laid the main emphasis on agriculture, irrigation and power and it allocated nearly 43 percent of the total outlay to these three items. In sharp contrast to this, the emphasis in the second plan

was on the development of industry which accounted for 18.2 percent of the total outlay. The distribution of total outlay of Rs. 4,800 Crores on different development items was as follows: It is clear that agriculture and community development was allocated 15.1 percent of total outlay in the First Plan while only 11.8 percent was allotted to it during the Second Plan. The percentage share of irrigation and power also declined from 28.1 percent to 19 percent; outlay on industry and mining was raised from 7.6 percent; in the First Plan to 18.5 percent in the Second Plan. The total provision for industry and mining during the second plan was that of Rs. 820 Crores as compared with a very modest figure of Rs. 170 Crores in the first plan. Outlay on transport and communication was also increased from 557 Crores in the first plan to Rs. 1385 Crores during the second plan. Thus it can safely be concluded that second plan was industry and transport oriented plan. Describe the objectives and achievements of Third Five Year Plan. The Third Five-Year Plan was conceived as the first stage of a decade or more of intensive development leading to a self reliant and self- generating economy. It was clearly laid down that the task for the next three plans will be • to lay the foundation of self-reliant economic growth • to provide avenues and opportunities for employment to all those who seek it • To ensure a minimum level of living for every family in the country while narrowing economic and social disparities. The Plan report observes that, ‘as a result of the progress achieved during the first and second five year plans, the foundations for rapid economic growth have been laid. India’s economy is now much larger in size and in the range of its operations it has become both more dynamic and more complex. In this background, the Third Five-Year Plan was not only to continue the process of development but it had to intensify it considerably so that the establishment of a self-reliant and self generating economy may be made possible. Objectives: The principal objectives of the Third Five-Year Plan were laid down as follows: • To secure an increase in national income of5 per cent per annum; • To achieve self-sufficiency in food grains and increase agricultural production to meet the requirements of industry and exports. • To expand basic industries like steel, chemicals, fuel and power and establish machine building capacity so that the requirements of further industrialisation can be met within a period of ten years or so mainly from the country’s own resources. • To utilize to the fullest possible extent the manpower resources of the country and to ensure a substantial expansion in employment opportunities ; and • To establish progressively greater equality of opportunity and to bring about reduction in disparities in income and wealth and a more even distribution of economic power. Achievements: The achievements of the Third Plan were much below expectation and the Plan was in difficulty due to Chinese and Pakistani aggressions and unfavourable weather conditions. The First Plan achieved considerable success, the performance of the Second Plan was also not unsatisfactory but the record of the Third Plan has not been good. Commenting on the achievements of the Third Five-

Year Plan, the Planning Commission observed that the progress has been less than adequate and less than anticipated, the most important short-falls being in the agricultural and the industrial sectors. At another place it comments that, in financial terms, the targets of the plan have been achieved. But several physical targets of production and capacity could not be achieved-owing largely to the unfavourable weather conditions which gave a serious set back to agricultural production, failure to take preparatory action, delays in finalising schemes, time taken in negotiating foreign assistance and obtaining equipment, hangover of certain shortfalls in the Second Plan, aggression on our borders and the long gestation period and phasing for most of the projects and programmes. Mention the key controversies which arose in the strategy of development in the early years? There were two key controversies, which arose in the strategy of development. They are: • Agriculture versus industry - those who favoured agriculture thought that the second plan lacked an agrarian strategy for development and the emphasis on industry caused agriculture and rural India to suffer. J.C. Kumarappa proposed an alternative blueprint that put greater emphasis on rural industrialisation. Chaudhary Charan Singh forcefully articulated the case of keeping agriculture at the centre of planning for India. He said that the planning was leading to creation of prosperity in urban and industrial section at the expense of the farmers and rural population. The people who favoured industry thought that without a drastic increase in the industrial production, there could be no escape from the cycle of poverty. They argued that Indian planning did have an agrarian strategy to boost the production of food grains. The state made laws for land reforms and distribution of resources among the poor in the villages. It also proposed programmes of community development and spent large sums on irrigation projects. The failure was not that of policy but its nonimplementation. • Public versus private sector - India adopted the element of both capitalist model of development in which development was left entirely to the private sector and socialist model in which private property was abolished and all the production was controlled by the state elements from both these models were taken and mixed together. That is why it was described as mixed economy. Much of the agriculture, trade and industry were left in private hands. The state controlled key heavy industries, provided industrial infrastructure, regulated trade and made some crucial interventions in agriculture. Critics argued that the planners refused to provide the private sector with enough space and the stimulus to grow. The enlarged public sector produced powerful vested interests that created enough hurdles for private capital, especially by way of installing systems of licenses and permits for investment. Moreover, the state’s policy to restrict import of goods that could be produced in the domestic market with little or no competition left the private sector with no incentive to improve their products and make them cheaper. The state controlled more things than were necessary and this led to inefficiency and corruption. Then there were critics who thought that the state did not do enough. They pointed out that the state did not spend any significant amount for public education and healthcare. The state intervened only in those areas where the private sector was not prepared to go. Thus the state helped the private sector to make profit. Also, instead of helping the poor, the state’s intervention ended up in creating a new ‘middle class’ that enjoyed the privileges of high salaries without much accountability. Poverty did not decline

substantially during this period; even when the proportion of the poor reduced, their numbers kept going up. What were the objectives of Third Five year Plan? The main objectives set out in the Third Five-year Plan were: • Expansion of the agricultural production through intensive methods of cultivation, use of high yielding varieties of seeds, improved irrigation facilities etc. • Setting up Co-operative Marketing Societies to eliminate middlemen and ensure fair prices to the farmers for their produce. • Co-ordinated and concerted development of selected areas so that people feel the necessary impact of planning and development and thereby also rectifying existing regional imbalances to the highest extent possible. • To improve and upgrade the local livestock by distributing good breeds of cattle, pigs, birds etc. and to extend veterinary facilities all over the country. • Continued development of the infrastructure facilities like construction of roads, bridges, power supply etc., for a rapid economic growth. • Acceleration of the pace of industrial development through setting up of small-scale industries, medium industries, industrial estates and also providing incentive to private parties for establishing demand/resource based industries. • Improvement of education facilities with emphasis on quality rather than on quantity. • Provision of medical and health services with a view to extending them to more people, especially those living in interior regions. • Providing special amenities in the Capital Town of Thimphu and develop it in a planned integrated manner. • Protection and preservation of ancient monuments. Mention two positive and two negative consequences of Green Revolution? Two positive consequences of green revolution: • Increased yields: Green Revolution techniques have increased the production per unit area of wheat and other food crops in some major development countries like India. The Green Revolution resulted in a record grain output of 131 million tons in 1978- 79. This established India as one of the world's biggest agricultural producers. No other country in the world, which attempted the Green Revolution, recorded such level of success. India also became an exporter of food grains around that time. • Labour saving: The high level of mechanisation associated with Green Revolution techniques led to a reduced dependence on low-skilled human labour. As a result, farmer and agricultural worker incomes rose substantially and production costs plummeted. The influx of labour, however, brought problems at its own, like the increased migration to the cities and creation of massive slums. Two negative consequences of green revolution: • Loss of biodiversity — the spread of Green Revolution hybrids and the associated techniques have resulted in the cultivation of many fewer varieties of crops. Some crops have seen90% reduction in crop varieties. • Health value and food quality — the replacement of multiple staple crops by a single HYV staple crop can mean a less varied diet. In addition, critics argue, many Green Revolution crops are bred for high caloric efficiency, storage longevity, and

appearance; but not for health value. As such, many hybrid crops are claimed to be inferior in nutritional value to their ancestors, potentially leading to malnutrition. What do you understand by ‘Operation Flood’? Operation Flood was a rural development programme started by India's National Dairy Development Board (NDDB) in 1970. One of the largest of its kind, the programme's objective was to create a nationwide milk grid. It resulted in making India one of the largest producer of milk and milk products, and hence is also called the White Revolution of India. It also helped reduce malpractices by milk traders and merchants. This revolution followed the green revolution and helped in alleviating poverty and famine levels from their dangerous proportions in India during the era. Amul (Anand Milk Union Limited) was the engine behind the success of Operation Flood and in turn became a mega company based on the cooperative approach. Operation Flood has helped dairy farmers direct their own development, placing control of the resources they create in their own hands. A National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities, reducing seasonal and regional price variations while ensuring that the producer gets a major share of the price consumers pay. The bedrock of Operation Flood has been village milk producers' cooperatives, which procure milk and provide inputs and services, making modern management and technology available to members. Operation Flood's objectives included: • Increase milk production ("a flood of milk") • Augment rural incomes • Fair prices for consumers From the outset, Operation Flood was conceived and implemented as much more than a dairy programme. Rather, dairying was seen as an instrument of development, generating employment and regular incomes for millions of rural people. Write a note on the budget of India. Budget generally refers to a list of all planned expenses and revenues. A budget is an important concept in microeconomics, which uses a budget line to illustrate the tradeoffs between two or more goods. In other terms, a budget is an organisational plan stated in monetary terms. India's Budget - India's public finance system follows the British pattern. The Indian constitution establishes the supremacy of the bicameral Parliament- specifically the Lok Sabha (House of the People)--in financial matters. No central government taxes are levied and no government expenditure from public funds disbursed without an act of Parliament, which also scrutinises and audits all government accounts to ensure that expenditures are legally authorised and properly spent. Specifically the Finance Minister, however, may initiate only within the Council of Ministers--proposals for taxation or expenditures. The Minister of Finance is required to submit to the Parliament, usually on the last day of February, a financial statement detailing the estimated receipts and expenditures of the central government for the forthcoming fiscal year and a financial review of the current fiscal year. The Lok Sabha takes one month to review and modify the government's budget proposals. If by April 1, the beginning of the fiscal year, the parliamentary discussion of the budget has not been completed, the budget as proposed by the minister of finance goes into effect, subject to retroactive modifications after the parliamentary review. On completion of its budget discussions, the Lok Sabha passes the annual

appropriations act, authorising the executive to spend money, and the finance act, authorising the executive to impose and collect taxes. Supplemental requests for funds are presented during the course of the fiscal year to cover emergencies, such as war or other catastrophes. The bills are forwarded to the Rajya Sabha (Council of States--the upper house of Parliament) for comment. The Lok Sabha, however, is not bound by the comments, and the Rajya Sabha cannot delay passage of money bills. When signed by the president, the bills become law. The Lok Sabha cannot increase the request for funds submitted by the executive, nor can it authorise new expenditures. Taxes passed by Parliament may be retroactive.