INDIA AND THE WAR.

Press, Volume LI, Issue 15218, 4 March 1915, Page 7

INDIA AND THE WAR.

THE BUDGET.

COUNTRY'S SOUND POSITION

COST OF CONTINGENTS

(Received March 3rd. 5.5 p.m.) DELHI. March 2. 5 Tn the Legislative Council, the > . finance member presented the annual > Financial Statement. He announced a ■ deficit for the current year of 5 £2.750,000, and forecasted a similar.de- ! ficife ior the incoming year. The deficit ' was the outcome of deficits caused by the war iii Customs and railway receipts. No additional taxation was proposed, as the deficit was due to temporary special causes, and India's unproductive debt was very small. In a review of the economic effects of the war, it was stated that tho Budget proposals were based on the position that the war would last through the year 1915-IG. An attitude of caution was - thoreforo essential. PYom August to December, imports had declined by seventeen millions, or 32 per cent., and expoi;te by twent3*-seven millions, or 42 per cent. Tho full irrigation and reduced railway programme would bo carried out, involving eight millions, while only a quarter of a million would be spent on the new Delhi. India had been much buffeted;, but the inherent strength of her financial and economic position hud been demonstrated at every turn. Her ]oan s and paper money stood practically unimpaired. An unprecedented drain on the Savings Banks had l>een met. There had been no crash on the ' such as pessimists had sometimes foretold in a world crisis. The measures taken to maintain the stability of tho rupee had met with full success. Readjustment of trade was already taking place, and at no time had it been necessary to consider the oxpedient of a moratorium. India had steadily faced all her obligations without having to fall back on outside- resources for any extraordinary measures of heln. To a large extent, her additional borrowing would- be taken from her own reserves. They looked to the future with sober confidence, which was materially strengthened by the agricultural situation. Monsoon and. winter rains have been abundant, and they could expect exceptionally bountiful crops.

India's cost of sending troops to the front was estimated at two millions for tho current year, and four smd threequarter millions for the coming year.

The Budget was -well received, and is considered proof of the rcinarkabl 0 strength of tho country's resources.