354
220
loss of revenue from Customs, Rum, and the Post Office.. This, together with minor items of extra expenditure, such as the cost of passages for officers, 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 expenditure, the Government will be justified in using all their available balances in order to clear the deficit of 1931-32. But we should make it clear that we do not think that the Government can trust to its balance alone. Additional revenue is urgently required, and the new taxes should be introduced with effect from January, 1932.
7. It is now necessary for us to summarize the estimated financial position for the year 1932-33. After deducting this year's supple- mentary expenditure the present budget figures of revenue and expenditure would, if repeated for next year, show a net deficit of Rs.184,000.
The revenue which we propose to remit will be for the full year :-
House tax
Water fountain rate
Night-soil fees
Cemetery fees
Oil Islands dues
Municipal receipts
Trades School receipts
Total
Rs.
116,000
15,000
70,000
16,000
9,000
7,000
2,000
Rs.235,000
.4
The closing of the Funds will throw the following charges upon the general budget :-
*
Minor industries
Miscellaneous
Appendix VI.-Improvement Fund:
Rs.
Interest on loan
75,000
25,000
14,850
Appendix VII.-Sewerage :
Maintenance
61,615
Appendix VIII.-Agricultural College :
Contributions
16,537
Appendix IX.-Dairy, net loss
6,000
Total
Rs.199,002
221
The interest charges alone on the new Hurricane Loan will be approximately Rs.400,000.
Assuming that the reduction of railway services is carried out by instalments, in order to avoid too sharp a curtailment of the labour market, and that therefore this most important measure is not complete by the end of the present financial year, we must be a loss on railways of as much as Rs.250,000, while a prepared for small sum, say, Rs.50,000 should be provided for depreciation. Rs.300,000 in all would cover the loss on working and also the balance of the extra gratuities and pensions, in addition to depreciation.
In estimating at Rs.100,000 the net saving in 1931-32 from the departmental reorganization we took into account the payment in that year of Rs.92,000 as special gratuities. We must allow for further payments of Rs.300,000 gratuities and pensions, in conse- quence of the reduction of posts; this is, however, an extreme figure, and is largely non-recurring, and on the other side we are not considering the probability of recurring savings from the adoption of the new rates of pay for the general clerical service.
The extra charges which have to be met in 1932-33 would there- fore be :-
Original deficit
...
Remission of revenue
New charges on budget
Hurricane loan
Railways
Gratuities, special pensions
Total deficit
Rs.
184,000
235,000
214,000
400,000
300,000
300,000
Rs. 1,633,000
7. For meeting these additional charges there will be the follow-
ing new resources or savings :-
(a) The yield of the new taxes for the full year will be :-
Occupiers' tax
Tobacco customs
Silk
Perfumery
Dried fruits Licences
Total
Rs.
700,000
161,000
75,000
8,000
5,000
305,873
Rs.1,254,873
to which at least Rs.15,000 would have to be added for the Sugar Technologists, if the special duty paid for the Agricultural College were discontinued.
to
Rs. 792,000
(b) Departmental reductions for the full year will amount
!
PUBLIC RECORD OFFICE
Reference -
TLC.O.882/12
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- | COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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