120
98
5. We have proposed that Government should abandon certain items of revenue under Head IV, but this can have effect only for the half year in 1931-32. The loss of revenue will be :-
8. Water fountain rate
10. Nightsoil fees
13. Cemetery fees (2 months)
18. Oil Island Magistrates
23. Municipal receipts
.
Rs.
10,000
35,000
2,700
4,500
3,500
Total... 55,700
In the full year the loss on the lower grades for the house tax will be Rs.116,000, but the tax is already being collected and could not be refunded this year. We hope that the power of remission will be used freely for the relief of house tax payers whom we are proposing to relieve permanently. With these remissions we might estimate the loss of revenue in this section at a total of Rs.100,000. The estimated railway deficit is Rs.729,500, but the General Manager anticipates a further decline of Rs.120,000 in passenger revenue and Rs. 100,000 from sugar. These figures make it urgently necessary to begin the reduction of railway charges, but we cannot expect that in the present financial year the reductions, less the loss of passenger revenue and less the payment of pensions, gratuities and allowances, will do much more than keep the rail- way deficit from exceeding Rs.700,000.
6. We can estimate at approximately Rs.200,000 the first half year's charges on the new Hurricane Loan.
7. The following figures of deficit may therefore be taken :-
Budget deficit
99
We have not
normal course as having reached pensionable age. checked these figures, but believe the amount charged to gratuities might be largely reduced if all officers who have reached pensionable age are retired and younger officers, whose posts will be abolished under our scheme, are retained in their place. For the purpose of this calculation we can assume extra charges this year of Rs.250,000 (this does not include railway charges).
The statement of savings may therefore be :-
As indicated separately
Less, for reduction of cut
Less, for gratuities, &c.
Net savings
Rs.
491,000
6,000 250,000
235,000
8. The estimated yield of the new taxes which we recommend is for 1931-32:-
Full year Occupiers tax
Half year Tobacco customs
Half year Silk
Half year Perfumery
Half year Dried fruits
Half year Licences
Total taxes
9. The estimate for 1931-32 will therefore be :-
Deficit, net
Less savings, net
Rs.
700,000
80,000
37,500
4,000
2,500 / 131,000
Rs.955,000
Rs. 1,435,000
Refund of sugar duty
Remission of revenue
Loss on railways
New loan charges
Total
Rs.
235,000
Less new taxes
200,000
100,000
Net deficit
700,000
To this must be added :--
200,000
1,435,000
The accompanying statement will show the savings which we expect from the changes which we recommend in the departments; the figures include (a) the general cut in salaries for six months only (the total should be reduced by Rs.6,000 owing to the reduction in the rate of the cut on higher salaries, as already reported by us), (b) abolition of posts, creation of new posts, and saving on other charges, for two months only in 1931-32.
Our first estimate of new pension charges consequent on the abolition of posts is Rs.281,000 for gratuities and Rs.78,500 for pensions, excluding the pensions of officers who are retired in the
La Nicolière advances, including the amounts which must still be expended in order to close down the scheme at once without risk of damage to private property, as we have already explained
in our letter and appendix on this subject
Total excess charges
235,000
Rs.1,200,000
955,000
Rs.245,000
Rs.
1,625,000 1,870,000
10. Against these charges there are the following assets :-
Balance of sewerage loan Scholarship Fund
Rs.
1,000,000 (or more)
500,000
Deducting these assets we are left for 1931-32 with excess charges of Rs.370,000, and the possible further loss of revenue from
10490
G 2
PUBLIC RECORD OFFICE
། ། ། ། ། །
Reference:
C.O.882/12
PUBLIC RECORD OFFICE, LONDON'
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