CO885-(11-12) — Page 432

CO882 & CO885 Colonial Office Confidential Prints 理藩院機密印刊 All

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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

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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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