March 14, 1953
THE ECONOMIC WEEKLY
Economic Problems of Rajasthan
Pushpa Raj Mridul
T
HOSE
Rajasthani
Micawbers
w h o h a d been expecting somet h i n g to t u r n up must have been
rudely awakened f r o m their slumber by recent developments
which
leave no r o o m for doubt that
if
Rajasthan is to raise itself in near
future, it must do so by its o w n
boot-straps.
O t h e r w i s e , Rajasthan
will
continue to be
in economic
backwaters.
M u c h sand has b l o w n over
Rajasthan since the i n t e g r a t i o n of
f o r m e r States i n t o the U n i o n . A t
t h a t t i m e , the' G o v e r n m e n t of I n d i a
made certain promises w h i c h were
i n c o r p o r a t e d as i m p o r t a n t p r o v i sions of the Federal F i n a n c i a l I n t e g r a t i o n Agreement.
Hut u n f o r t u nately
economic history of Rajast h a n of recent years is a woeful
tale of u n f u l f i l l e d promises and
hopes unrealised.
T h e P l a n n i n g a n d the Finance
Commissions, w h i c h set out to reb u i l d the economic and financial
structure of the c o u n t r y , both failed
to gauge the degree
of economic
f r i c t i o n p r e v a i l i n g in Rajasthan
a n d also to devise suitable correctives for its socio-economic disequil i b r i u m . T h e y have also departed
f r o m the accepted canon t h a t in
a cohesive, coherent a n d systematic p a t t e r n of n a t i o n a l
economy,
b a c k w a r d States should be b r o u g h t
on a par w i t h the more advanced
ones.
W i t h an area of 130,000 square
miles a n d a p o p u l a t i o n of 152,00000, Rajasthan, w h i c h is threef o u r t h desert, is undoubtedly m u c h
less developed in comparison w i t h
o t h e r States, Part A and Part B, of
the I n d i a n U n i o n .
Vast
expanse of barren
tracts,
t h i n forest coverage, low r a i n f a l l ,
soil erosion. flood and famine,
absence of industry w o r t h
the
name, inadequate
transport
and
c o m m u n i c a t i o n s , a n d an a d m i n i s trative
machinery
incapable
of
a p p l y i n g the m o d e r n technique of
welfare economics—this is Rajast h a n today.
AGRICULTURE
O u t of a t o t a l area of 828 l a k h
acres, Rajasthan has only 199 l a k h
acres unifier some f o r m of c u l t i v a t i o n . O f this again, o n l y 3 1 l a k h
acres get the benefit of i r r i g a t i o n .
Cultivable
waste
accounts
for
233 l a k h acres. Forests cover about
11.7 per cent of the area, that is,
12,000 acres, but they have very
l i t t l e t i m b e r value. A n d as regards
their a b i l i t y to check erosion, we
k n o w w e l l the menace of the
i n a r c h i n g Rajasthan desert.
Rainf a l l w h i c h varies f r o m 5" to 15" in
the west a n d 20" to 3 0 " in the
h i l l y n o r t h is unevenly d i s t r i b u t e d ,
erratic a n d precarious.
So acute is the p r o b l e m of water
supply that at least Rs 5 crores are
needed to ensure supply of c h i n k i n g
water at its m i n i m u m to the sandy
western parts and for l i m i t e d i r r i g a t i o n a l facilities for other parts of
the State.
The- G o v e r n m e n t of
Rajasthan h a d such a p l a n . But it
still hangs lire for w a n t of h i n d s .
A d d e d to these n a t u r a l deficiencies
is the defective land tenure system.
Recently some legislation has been
passed but it takes long for its effect
to be visible.
TRANSPORT AND COMMUNICATIONS
Rajasthan has the lowest
road
mileage, not to speak
of r a i l r o a d
mileage, for any State in I n d i a . At
the time of i n t e g r a t i o n , it had only
8.755 miles of roads of all types
of w h i c h 3,432 miles were metalled.
T h i s works out to 6.70 miles of
roads of a l l kinds a n d 2.70 of
metalled roads for every 100 square
miles. Even i m p o r t a n t places are
not l i n k e d w i t h each other.
The
c o n d i t i o n of district a n d tehsil headquarters is deplorable in
this respect.
Big tracts like S h c k h a w a t i
a n d M a l a n i do not have any road
system at a l l . T h e R o a d Developm e n t A d v i s o r to the
Government
of I n d i a , w h o went i n t o this quest i o n , recommended a p l a n of Rs 7
erores w h i c h he regarded as ' the
barest
m i n i m u m ' to rectify
the
deficiency
of roads in
the State.
T h i s p l a n has not yet seen tire I i ^ h t
of day.
INDUSTRY
Rajasthan has very few large
i n d u s t r i a l concerns.
A couple of
textile m i l l s , engineering a n d m e t a l
works a n d a score of m i n i n g ventures, especially, in m i c a and gypsum,
talc a n d soapstone,
copper
a n d tungsen, etc, t h a t dot the
State are like ripples in a vast
ocean. In a l l , it is estimated,
industries a n d mines e m p l o y 34,000
297
a n d 15,000 respectively.
About 6
to 7 l a k h of people Subsist on cottage industries.
'But handicrafts
have
been on the decline—as
a
result of the a b o l i t i o n of patronage
of the extinct p r i n c e l y classes a n d
i m p a c t of m o d e r n technical advancement.
SOCIAL SERVICES
Social service's in Rajasthan are
meagre. T h e per capita expenditure of Rs 5.6 was the estimate in
1952-53 social,
educational
and
health
services all p u t
together.
The
corresponding
figures
for
Mysore
and M a d h y a B h a r a t are
Rs 12.0 a n d Rs 9.0 respectively.
The
Finance
Commission
have
recorded that out of 19, 20.000
c h i l d r e n in Rajasthan in
the age
g r o u p 6-11 years, only 2, 06,000
were a t t e n d i n g schools. T h i s works
out. to 10.6 per cent for Rajasthan
as compared to 98,8 per cent for
Travancore-Cochin, 42.4 for Saurashtra, 57.0 for Mysore, 34.0 for
UP a n d 26.2 for Punjab. ' H e a l t h
services
were no doubt
adequate
and up-to-date in the capital towns
of former
States, but
there is a
woeful lack of medical services in
the r u r a l areas. A measure of the
deficiency in health services can be
f o u n d f r o m the fact that as many
as 19,000 people are catered for byone single dispensary in the State!
O t h e r social welfare movements
like co-operation, c h i l d , w o m e n a n d
labour welfare are still in infancy,
nay in the i n c u b a t i o n stage, if that
term is p e r m i t t e d to be used.
FINANCES
Finances have their o w n p i t i a b l e
tale. F r o m its inception, Rajasthan
i n h e r i t e d a legacy of deficit b u d gets. Deficits, of all the former,
States c o m p r i s i n g Rajasthan,
in
1947-48 a m o u n t e d to Rs 111.93,
lakhs a n d to
Rs 84.6b lakhs in
1948-49.
T h u s the new State of
Rajasthan started w i t h a deficit of
Rs 85 lakhs. T h e year that f o l l o w ed showed a surplus of Rs 62 lakhs.
But deficits of the order of Rs 4
lakhs occurred in 1951-52 a n d a
deficit of Rs 107 lakhs is estimated
for 1952-53T h e budget for 1953-54 has
as
yet not been presented.
But
the
p r o b l e m of b a l a n c i n g it is definitely
a difficult one. Straws in the w i n d
March 14, 1953
allocation
per
sq
indicate
a s t i l l bigger deficit. social existence
it is Rs 10 per per capita. The
A u t h o r i t a t i v e circles c o m p u t e a n
H i t h e r t o , Rajasthan h a d been a n d
Rs 12,000
overall deficit of Rs 1,041.43 lakhs i m p o r t i n g at least 50,000 tons
of figures for M y s o r e are
for the q u i n q u e n n i u m 1952-53
to food-grains yearly a n d has been per sq m i l e a n d Rs 40 per capita
the
1956-57
subsidising the same at the rate of a n d f o r T r a v a n c o r e - C o c h i n
respective
figures
are
Rs
28,000
and
T h e p a t t e r n of finances in Rajas- Rs 16.20 lakhs per 10,000 tons.
The end of these struggles is not Rs 29.
than.
like that of other
Part B
In
a l l fairness t o the
Finano
interStates, is different f r o m Part A to be seen anywhere. T h e
it can he
conceded
States.
Income-tax
allocations State transit duties w i l l have to be C o m m i s s i o n
in
accordance
w i t h that their findings a n d r e c o i n m e n d a n d sales tax have been i m p o r t a n t abolished
soum's of revenue in the Part A A r t i c l e 360 of the C o n s t i t u t i o n . ations, accepted by the G o v e r n m e n t
States.
For Bombay a n d
M a d i a s A n d it w o u l d he very difficult to of I n d i a , are favourable enough for
sales tax has been the largest reve- find a substitute even in the sales Rajasthan. But the l i m i t a t i o n of
It has been estimated that to A r t i c l e 360 of the C o n s t i t u t i o n
nue i t e m .
In
the Part B States, tax.
however, l a n d revenue a n d
excise get Rs 410 lakhs f r o m sales tax. to u n d e r w h i c h the Finance C o m m i s are the mainstay,
I n t e r - S t a t e t r a n - fill the gap, fresh taxes w i l l have to sion were w o r k i n g h a d definitely a
effect on the
Part B
a m o u n t i n g to Rs 2.6 deplorable
sit duties are very i m p o r t a n t items be imposed
States.
The C h i e f M i n i s t e r of Sauof revenue in Rajasthan.
Hyder- per head.
in
abad a n d M a d h y a Bharat.
I n the
Recently the Rajasthan G o v e r n - rashtra was more t h a n correct
the
revised budget estimate for Rajas- m e n t h a d approached the
Centre insisting on an e n q u i r y under
t h a n for 1951-52. Rs 400 lakhs were for a loan of Rs 3 crores to tide F F I A g r e e m e n t , w h i c h envisaged a
c r e d i t e d u n d e r this head.
over its difficulties. A b o u t Rs 1.5 t h o r o u g h e n q u i r y i n t o the finances
R a j a s t h a n also distinguishes itself crores have been sanctioned, pend- of Part B States a n d financial assistf r o m other Part B States i n a s m u c h ing an e n q u i r y i n t o the affairs of ance to these States to balance t h e i r
It is hoped that this budgets a n d to ' start on an even
as its per capita levenuc is the l o w - the State.
tho- keel '
est amongst P a i l B States.
being committee o f enquiry w i l l
A p a r t f r o m the p o l i t i c a l ethics
Rs 9.5 in 1950-51 a n d Rs 10.2 in r o u g h l y investigate the f i n a n c i a l
India
1951-72 as also its per capita
ex- c o n d i t i o n of the State, a n d it w i l l that the G o v e r n m e n t of
p e n d i t u r e , being Rs 9.1 in 1950-51, be m u c h better if it is a p p o i n t e d s h o u l d h o n o u r the assurances given
Rs 10.1 in 1951-52 a n d Rs11.3 in under the provisions of the Federal to the c o v e n a n t i n g States, there is
further
justification
for special
1952-53.
This in comparison w i t h F i n a n c i a l I n t e g r a t i o n A g r e e m e n t .
assistance to Part B States on ecoRs
11.8
1952-53)
for Part A
PLANNING COMMISSION
n o m i c grounds. T h e m o d e r n t e n d States, Rs 15.5 for Part B States
a n d Rs 12.6 for b o t h Part A a n d
Rajasthan
has
been
allocated ency in federal finance is towards
the needs
P a r t B States.
Rajasthan's per Rs 16.8 ' crores for development equalisation by m e e t i n g
Praccapita e x p e n d i t u r e on social service under the Final Plan, instead
of of the less developed units.
is also the lowest so far as Part B Rs 35 crores w h i c h it thought to tice in A u s t r a l i a , C a n a d a a n d the
In AustraStates ate concerned.
be
tile m i n i m u m under
the cir- U S A corroborate this.
this l i a , for example, there is the C o m But
in tax revenue per capita, cumstances, lf we co-relate
m o n w e a l t h G i a n t s Commission t o
Rajasthan stands fairly h i g h .
It allocation w i t h the p o p u l a t i o n a n d
assess the needs of different
units
the
area
of
the
State,
we
f
i
n
d
the
was Rs 7.39 in 1950-51 a n d Rs 7.25
a
n
d
to
give
them
liberal
grants.
in
1951-52 as
c o m p a r e d w i t h t r u t h of the allegation that RajasThere
is no reason w h y
such a
Rs 9.28 and Rs 8.62
of Bombay t h a n lias only got a ' lamb's share '
procedure
cannot be adopted
in
T
h
e
table
below
gives
the
shares
or these years a n d Rs 8.91
in
I
n
d
i
a
.
of different Part B States
under
1951-52 for Saurashtra.
the Plan.
T o conclude, i t m a y b e concedA n d then Rajasthan h a d its o w n
E v e n when the a l l o c a t i o n is taken ed t h a t in view of the present c i r peculiar post-integration problems.
It h a d to strengthen its h o l d e r in absolute figures, the table brings cumstances w h e n the Plan is being
it is absurd to take a
security arrangements to meet
the out the inadequacy of the alloca- launched,
defence exigencies.
It h a d also its t i o n to Rajasthan. T h e discre- sectional v i e w of the problems.
problem of f i g h t i n g lawlessness
in pancy become more g l a r i n g if per But the case of m u t e m i l l i o n s of
the countryside.
It h a d also to capita share and the share per sq u n d e v e l o p e d States should not go
not
fight famines. It is still l i g h t i n g a l l m i l e are w o r k e d out. Let us take by default. The. P l a n does
stand
by
itself.
It
stands
or
falls
three
States
only.
For
Rajasthan,
these p o w e r f u l enemies of o r d e r l y
by w h a t it does to the people,
particularly
the
less
fortunate.
A n d lastly, the G o v e r n m e n t o f
I n d i a a n d those w h o preside over
the destiny of the c o u n t r y s h o u l d
win
p u b l i c co-operation for
the
i m p l e m e n t a t i o n of the P l a n , even
f r o m those w h o l i v e in the States
w h i c h are just e m e r g i n g f r o m the
throes of feudal rule. '
Rajasthan
has immense possibilities for development. I t i s w a i t i n g t o b e developed.
A n d earlier
such a start is made, the better it
is for a l l .
298
March 14, 1953
THE ECONOMIC WEEKLY
299