While framing this draft constitution for the Union we have almost accepted the constitutional set-up envisaged in the Government of India Act, and I have a lurking suspicion in my mind that we may also accept the financial arrangement that was provided for in that Government of India Act. Sir, it is not necessary for me to tell this House that the financial arrangement set up under that Act was conceived with a different outlook. At that time the Provinces were confronted with deficits and the Committee that was set up at that time, I mean the Otto Neimeyer Committee, had to determine how to bring about budgetary equilibrium. Besides, Sir, the Committee approached this question of budgetary equilibrium with the notions which prevailed regarding public finance at that time. These notions have now undergone a radical change in these few years and they have been replaced by a different criterion–the criterion of maintaining full employment, whether maximum advantage for the people can be brought about by a financial system which was designed to meet a static economy is now being called upon to meet a situation which is essentially dynamic. Sir, a government of the people and by the people is being installed and what will be the meaning, and what will be the utility of that government if it cannot bring about the maximum advantage to the people?
