3. penditure

48

(a) Toramach 1h of the despatch.

#2 million is provided under Head 20 306-lead 2,, for cost of living sllowances, etc. This provision inclulos #5 million to cover any increases in salaries which may be recomanded by the Salaries Comd.sion. diibe the Eatinates were prepared, approval has bec givon for certain increases in the coat of living and special allowances, the estimated cost of which 18 #3) million (see your letter

23rd June, 1947).

In approving the Estiɛntes, we propose to stipulate that ne further expenditure shall be incurred from the #5 milliod without the fecretary of State's prior approval. e naist, however, asmUE that the recoacad.tions of the "alarles Coralssion will bost ore than the balance of Ai million and that unlean revonus cxceeds the estimate, quite apart fron cuch supplementary expenditure as is bound to ariae during the course of the year on this score alone, there may alti utely be a budget deficit. You 111 note, however, from paragraph 33 of Sir Bark Young'a despatch that revenue la stated to have been estimated on a conservative basis, so that it is still possible that, in spite of the additional experlitre that will be required under this particular Head, there may yet be a shell surplus at the end of the year.

(b) Tara Tant 25 of the defcatch. Lead 20. Item 26. /1,500,000 is provided as an initial get to the

unicipality. *e propose that approval of this provision should be subject to the understanding that

the

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