121
116,000
15,000
100
Customs, Rum, Post Office, Harbour, and Granary, which can be covered by the balance of the Improvement and Development Fund, amounting to nearly Rs.2,000,000.
We consider that as the net savings and the proceeds of the new taxes will in 1932-33 give a secure margin of revenue over expen- diture, the Government would be justified in using all their available balances in order to cover the deficit in 1931-32.
11. It is not necessary for us to summarize the estimated financial position for the year 1932-33.
The 1931-32 figures for revenue and expenditure (less supple- mentary expenditure) give a net deficit of Rs.184,000. The revenue which we propose should be given up will be for the full year :—
House tax
Fountain rate
Rs.
101
12. We have already allowed for the expenditure in 1931-32 of Rs.250,000 consequent on the reduction of the Civil Service; this amount will mainly be expended on gratuities. It should be sufficient in 1932-33 to provide Rs.150,000 for extra pension charges, especially as the reduced rates of pay for the new General Grade clerks will begin to have effect, as vacancies occur.
The extra charges should therefore be :--
Original deficit
Remission of revenue
New charges Railways
New loan charges Pension charges
R8.
184,000
235,000
200,000
300,000
400,000
150,000
Rs.1,469,000
Nightsoil fees
70,000
Cemetery fees
16,000
Oil Island dues
Municipal receipts
Trades school receipts
9,000
The attached statement shows that the Civil Service savings an- ticipated for the full year will be Rs.1,436,572 leaving a net deficit of only Rs.35,000.
7,000
The yield of the new taxes for the full year will be :
2,000
Rs.
Occupiers tax
700,000
Rs.235,000
Tobacco customs
161,000
Rs.
App. VI.
75,000
Minor Industries
25,000
Miscellaneous
14,850
App. VII.
Sewerage
Maintenance
61,615
App. VIII.
Agricultural College
Contributions
App. IX.
Dairy net loss
16,537 6,000
Rs.199,002
The closing of the funds will throw the following charges on the general budget :-
Improvement Fund
Interest on loan
Silk
75,000
Perfumery
8,000
Dried fruits Licences
5,000
265,000
Rs.1,214,000
and
GATAG BADLI
NOT TOl
5
(to which Rs.15,000 would have to be added if the special duty paid for the Agricultural College were discontinued).
The interest charges alone on the new Hurricane Loan will be Rs.400,000.
:
Assuming that the reduction of railway services cannot be fully carried out by the beginning of the new financial year, we must be prepared for a loss on railways of as much as Rs.250,000. It will be necessary also to provide a small sum for depreciation, say. Rs.50,000. The extra charge for railway pensions and allowances should be covered by this total figure of Rs.300,000 for loss on rail- ways, a figure which will be reduced to Rs.100,000 when the full scheme is carried out.
This extra revenue would give a net surplus of Rs.1,179,000, although it is necessary to cover the interest charges on the new loan it may be expected that recoveries will be made from the debtors. On the other hand it is necessary also to cover the financial effect of a possible continuance of the moratorium if cir- cumstances make it again inadvisable to retain the sugar export duty; and these figures take no account of a possible failure to reach the full estimated yield of the customs and excise duties. The proposed surplus should be adequate but is not excessive. Should the danger of a decline in customs and excise revenue not be realized, and any question of the remission of taxation arises, this remission should take the form of a reduction of the revenue derived from rum, rather than the reduction of any of the new taxes which we have proposed.
We have, &c.
His Excellency
the Governor.
Ivo J. ELLIOTT. M. LOUGHNANE.
THBLIC RECORD OFFICE
༅། ། ། ། ། །
חודןז
Reference:
C.O.882/12
ALLY WITHOUT PERMISSION OF THE BF REPRODUCED PHOTOGRAPHIC- | COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
102
Statement of savings by Budget Heads.