INDIA DATE WITH DESAI TO INDIA'S ABLE FINANCE MINISTER MORARJI DESAI, AUSTERITY 
IS A WAY OF LIFE . NOT ONLY IS HE A 
VEGETARIAN AND A TEETOTALER WHO FASTS FOR A DAY AND A 
HALF EVERY WEEK, BUT HE IS ALSO A HARDHEADED FISCAL CONSERVATIVE 
WHO DERIDES PIE-IN-THE-SKY WELFARE SCHEMES AND IS AN ARDENT BELIEVER IN 
PAY-AS-YOU-GO FINANCING . LAST WEEK DESAI PRESENTED THE INDIAN PARLIAMENT WITH 
AN AUSTERITY BUDGET THAT WILL PUT THE ENTIRE NATION ON THE 
DESAI STANDARD . TO FINANCE INDIA'S HERCULEAN TASK OF EQUIPPING ITS 
ARMED FORCES AGAINST THE CONTINUING THREAT OF CHINESE AGGRESSION, DESAI BOOSTED 
THE BUDGET BY A STAGGERING 33 PER CENT TO A RECORD 
$3.8 BILLION ; DEFENSE EXPENDITURES ALONE JUMPED 70 PER CENT, TO 
$1.8 BILLION . BUT DESAI REFUSED TO SQUEEZE THE MONEY OUT 
OF THE GOVERNMENT'S COSTLY FIVE-YEAR PLAN OR EVEN TO RELY ON 
LARGE-SCALE DEFICIT FINANCING . THE COST WILL BE BORNE BY INDIA'S 
POPULATION WHOSE PER CAPITA INCOME LAST YEAR WAS $69 . PERSONAL 
INCOME TAXES IN THE LOWER BRACKETS WILL BE INCREASED AS MUCH 
AS 450 PER CENT . IMPORT DUTIES ON MOST RAW MATERIALS, 
MACHINERY AND MANUFACTURED GOODS WILL BE BOOSTED FROM 15 PER CENT 
TO 55 PER CENT . ALL OF INDIA'S TAXPAYERS WILL HAVE 
TO DEPOSIT UP TO 3 PER CENT OF THEIR AFTER-TAX INCOMES 
IN GOVERNMENT SAVINGS ACCOUNTS ; BUSINESSES WHOSE AFTER-TAX INCOMES EXCEED 6 
PER CENT OF THEIR CAPITAL VALUE MUST PAY A 50 PER 
CENT TAX ON ALL SUBSEQUENT PROFITS . ALL BASIC HOUSEHOLD GOODS, 
CLOTH, FOOD AND COOKING FUELS WILL BE HIT WITH NEW TAXES 
. ONLY EXCEPTIONS : SUGAR, SHOES, RICE AND MATCHES . ADVERSE 
REACTION TO THE BUDGET WAS SURPRISINGLY MILD . SOME BUSINESSMEN PROTESTED 
THAT DESAI COULD HAVE EASED THE TAX BURDEN BY SLASHING UNNECESSARY 
GOVERNMENT EXPENDITURES ; OTHERS POINTED OUT THAT INDIA MIGHT HAVE BEEN 
SPARED THE CRUSHING NEW TAXES IF THE GOVERNMENT HAD SPENT ENOUGH 
MONEY IN THE PAST TO HAVE MADE A MORE CREDITABLE SHOWING 
AGAINST THE CHINESE . GRUMBLED ONE : " THIS IS A 
HIGH PRICE TO PAY FOR LADAKH EVEN ASSUMING WE DO GET 
IT BACK . " BUT MOST INDIANS CLOSED RANKS BEHIND DESAI 
. SAID ONE GOVERNMENT OFFICIAL : " THE BUDGET IS THE 
CLEAREST ANSWER YET GIVEN BY AN ASIAN DEMOCRACY TO COMMUNIST EXPANSION 
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