113
amounting from Rs. 320,000 to Rs. 500,000; and the further loss on land revenue under the new Grain Ordinance may be put down probably at Rs. 80,000 a year. In other words, the Colony has to provide in 1883 against a deficit of Rs. 500,000, and it has to meet further charges amounting in 1884 to Rs. 320,600, in 1885 to Rs. 500,000, with further sinking fund in 1888 amounting to Rs. 34,000 on the loans required to complete works in progress, and there will probably be a loss on land revenue in the next few years of Rs. 80,000, making in all a sum of over Rs. 1,000,000 to provide immediately by taxation and reduction of expenditure merely to balance the accounts."
The anticipated deficit of the next few years is therefore as follows:-
REVENUE of Ceylon, 1882 to 1885.
HEAD OF REVENUE.
1882.
1883.
1884.
1885.
Rs.
Arrears of revenue Customs
424,601 2,750,458
Bo. 410,828 2,754,697
Rs. 812,840
Rs. *292,979
2,800,270
2,867,048
·
In 1883. Deficit as given in report of Sub-
Committee
Rs.
In 1885.
Rs.
Port and harbour dues Land sales
159,788
456,048
458,197
482,089
•
271,250
264,885
424,889
848,085
Land revenue
822,003
950,841
988,79") *1,043,438
Deficit of 1884
860,600
Renta exclusive of Lands
883,284
840,343
368,082
395,861
·
500,000
New charges for interest and
sinking fund
Licenses
1,547,672
1,588,000
1,404,288
1,436,560
·
175,400
Stamps
797,418
742,025
741,708
1,050,593
Taxes
81,808
85,676
35,088
87,698
Loss on Grain Revenue
20,000
Postal
241,915
244,580
241,001
18,764
Fines and forfeitures
70,838
46,620
43,812
56,514
Total
Rs. 1,056,000
Government vessels
54,669
59,485
54,454
44,709
Sale of Government property
994,469
1,032,803
1,080,781
1,001,849
Reimbursements
842,240
In 1884.
Rs.
In 1888.
Rs.
Electric telegraph
54,438
379,947 39,287
469,960
448,974
55,677
55,664
Deficit as above
New charges for interest
Loss on Grain Revenue
500,000
Deficit of 1885
1,056,000
Miscellaneous receipts
355,881
893,428
189,024
851,542
Interest
320,600
40,000
Loss on Grain Revenue Sinking fund
20,000
Pearl fishery
34,000
Special receipts
Railway receipts
213,426 630 6,950 2,638,493
227,619 440 6,470 2,473,508
162,950
145,395
83,658
a 440
8,835
10,828
2,543,166
2,617,928
Total
Rs. 860,600
Total
-
Rs. 1,110,000
Total revenue
12,161,570
12,396,577
12,402,865
12,650,863
"Nevertheless there is nothing alarming in the financial position of the Colony; its soundness is seen in the small effect of the present depression on sources of revenue not immediately affected by the coffee enterprise, and in the steadiness of the revenue in the provinces unaffected by the coffee enterprise."
There was nothing alarming in this; there certainly was no ground for " exaggerated alarm." I proceeded to show how, in my opinion, the financial difficulty could best be met. How far the suggestions then made were of assistance in preventing a deficit may be seen from the Earl of Derby's Despatch, No. 357, of 1st November 1883,* and from the financial measures adopted by Sir A. Gordon thereon. Though Sir A. Gordon did not fail to have recourse to me for information from his first nomination to the Government of Ceylon, even before he assumed it, up to March 1885, and though he did not fail to use my services to carry through the Legislative Council of Ceylon the necessary measures to meet the financial difficulty, this is the first time I have heard of any "exaggerated alarm," or any question as to the soundness of the data on which he was proceeding.
3. The statements made in the second part of paragraph 12 above quoted from Sir A. Gordon's despatch, supply part of the materials necessary for a reply to the suggestion of exaggeration contained in the first part of that paragraph. As compared with 1882, a deficit in 1885 of about Rs. 1,000,000 was shown to be the inevitable result, if proper financial measures both to reduce expenditure and to find fresh sources of revenue were not adopted. They were adopted. Nothing is said by Sir A. Gordon of additional taxation, but he says that a reduction of expenditure to the extent of Rs. 900,000 was effected, and that the balance of revenue over expenditure in 1885 was only Rs. 39,656. It is true that Sir A. Gordon goes on to say that the revenue of 1885 exceeded that of 1882 by Rs. 500,000, and, during the year 1885, several works "of importance were undertaken, forming no part of ordinary administrative expenditure
But this is not the whole case,
at a total cost of at least Rs. 500,000."
་་
4. The whole case can best be seen from an examination of the receipts and expenditure of Ceylon for the years 1882 to 1885, given below:-
* No. 2 in Eastern No. 41.
• The decrease under arrears and the increase under land revenue are, in great measure, accounted for by more punctual and careful collections of the land revenue.
EXPENDITURE of CEYLON, 1882 to 1885.
HEAD OF EXPENDITURE,
1882.
1888.
Eatablishments
Pensions and retired allowances Revenue services
Rent
Transport
.
Works and buildings
R..
1884.
1885.
4,585,707
B... 4,445,969
R..
4,415,634
Rs. 4,405,679
504,087
559,706
608,402
473,211
457,450
600,496
646,103 605,962
Administration of justice
210,501
197,448
186,239
181,779
Ecclesiastical
8,199
8,146
8,170
8,120
Charitable allowances
46,183
46,579
40,568
61,369
Education
272,515
255,875
963,356
287,887
Hospitals and sanitation -
827,885
412,023
422,188
462,785
Police services
128,016
119,182
105,904
104,467
Prison services
857,027
882,175
389,849
426,064
2,897
2,822
2,799
3,705
90,947
98,149
Conveyance of mails
252,631
265,844
96,113 258,986
91,876 291,607
126,600
97,415
114,616
1,474,035
1,368,106
1,865,821
247,564 1,323,889
201,354
168,449
159,025
279,602
Interest .
211,516
869,194
624,558
609,584
Colonial store
80,877
84,721
84,782
27,794
Contribution towards military expenditure
1,267,620
1,269,078
1,035,844
681,946
Government vessels
49,920
86,594
60,725
92,658
Refund of duties, drawbacks, &c.
52,778
40,752
49,892
63,522
15,825
8,320
2,514
5,600
Immigration
93,202
Railway services
1,629,585
Telegraph services
Exchange
111,740 80,418
80,181 1,488,654 26,162 48,465
Total expenditure -
12,494,664
12,222,234
75,450 1,607,788
41,518
12,818,218
80,299
1,740,048
108,876
12,611,307
Roads, streets, and bridges
Miscellaneous
Lands taken for Government purposes
૨૩
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
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