The Annual Register 1914 / A Review of Public Events at Home and Abroad for the Year 1914

by Anonymous

V. BRITISH INDIA.

(1) FINANCE.

At the meeting of the Imperial Legislative Council on March 2 Sir William Meyer, the new Financial Member, reviewed at length the annual Statement which had been presented a few days previously. After paying a warm tribute to his predecessor, Sir Guy Fleetwood Wilson, he pointed out that, owing to the disappearance of the Chinese opium revenue and other causes, the prosperity budgets and large surpluses which had marked the latter's term of office, and had enabled the Imperial Government to distribute doles to the Provincial Governments, could no longer be looked for. It was, however, a matter for congratulation that the ordinary revenue had been sufficient to provide for the necessary expenses of the Government without imposing additional taxation.

Revised Estimate, 1913-14.—The Budget Estimate, given in millions sterling with decimal points, showed Revenue, Imperial 53.044, Provincial 29.280, Total 82.324; Expenditure, Imperial 51.718, Provincial 32.193, Total 83.911. The result was thus an Imperial surplus of 1.326, and a Provincial deficit of 2.913, or a total excess of Expenditure over Revenue of 1.587. A Provincial deficit is, however, not a real deficit; it is met by the Local Governments drawing on the large balances already in hand.

The figures of the Revised Estimate were: Revenue, Imperial 53.619, Provincial 30.643, Total 84.262; Expenditure, Imperial 52.291, Provincial 31.384, Total 83.675, giving an Imperial surplus of 1.328 and a Provincial deficit of ·741, or a total surplus of ·587. The Imperial surplus was thus almost exactly the same as that entered in the Budget; the decrease in the Provincial deficit was due partly to underspending and partly to an improvement in the sources of revenue allotted to Provincial Governments.

On the Revenue side certain sub-heads showed a material difference between the Budget and the Revised Estimate. Under Customs there was an improvement of 492,000l., reflecting the prosperous conditions which had prevailed over the greater part of the country. Busy trade in the early part of the year necessitated an addition to the currency and the seigniorage on the consequent coinage amounted to 136,000l.; an increase in small coinage likely to be required in the famine districts raised the total improvement under Mint to 164,000l. The net receipts from Railways were expected to be 104,000l. less than the Budget Estimate, owing to dull trade in the closing months of 1913, increased expenditure on rolling stock, and the repair of damage to lines. There was a falling off of 276,000l. in Land Revenue, due to the failure of the kharif crop in the United Provinces and adjacent areas and the consequent remissions or suspensions. The greater demand for canal water in the United Provinces, and the revision of rates in parts of the Punjab, produced an increase of 149,000l. under Irrigation. There was an improvement of 156,000l. in the Income Tax Receipts, chiefly due to the large profits realised by banks and industrial concerns in Calcutta and Bombay in the preceding year. Miscellaneous receipts gave an increase of 127,000l. In the Excise Revenue there was an increase of 454,000l., owing to general prosperity, especially in Madras and Bombay. The income from Forests was expected to be better by 177,000l.

Reviewing the Revenue as a whole, the Financial Member was of opinion that it showed satisfactory progress. Excluding opium altogether, the receipts for 1912-13 were 81,738,000l., whilst for 1913-14 they were expected to be 82,656,000l.

The Imperial Expenditure was expected to be 573,000l. in excess of the Budget Estimate, whilst the Provincial Expenditure would be 809,000l. less. The Military Charges accounted for 392,000l. of the Imperial increase; the main cause of this was the rise in prices of food and fodder.

Budget Estimate for 1914-15.—The figures were: Revenue, Imperial 54.261, Provincial 30.772, Total 85.033; Expenditure, Imperial 52.981, Provincial 33.981, Total 86.962. The result anticipated was thus an Imperial surplus of 1.280 and a Provincial deficit of 3.209, or on the total account a deficit of 1.929.

The total Revenue given above was 750,000l. in excess of that shown in the Revised Estimate, 1913-14. The heads under which the chief improvements were expected were Land Revenue, Opium, Post Office, Stamps, and Excise, whilst a falling off was allowed for under Customs, and in the net receipts from Railways owing to continued increase in the working expenses. The aggregate improvement budgeted for amounted to 771,000l., of which the Imperial share would be 642,000l. and the share of the Provincial Governments 129,000l.