INDIA'S BUDGET.

Press, Volume LVIII, Issue 17394, 3 March 1922, Page 7

INDIA'S BUDGET.

A HUGE DEFICIT. DRASTIC RETRENCHMENT AND INCREASED TAXATION. (By Cable—Press Association—Copyright.) (Reiner's Telegram*. • (Received March 3rd, 8.5 p.m.) DELHI, March 1. In tin Legislative Assembly, the Treasurer delivered his Budget which showed a deficit for the past year of thirty-four crores of rupees (approximately £22,666,000).

Tho revenue had declined by over twenty crores of rupees (approximately £13,333,000) chiefly in; Customs, Post Office and Railway receipts, the latter contributing 13£ crores of rupees (£9,000,000). while the expenditure had increased by over fourteen crores of rupees (approximately £9,333,000). The increase in. expenditure had been mainly caused by military expenditure' in connexion with the Waziristan Expedition and the loss aver the exchange rate. For the current year's Budget the exchange rate was reckoned at 16d. It was proposed to meet the deficit by raising railway passenger faros 25 per cent, and raising postal rates, Customs duties, the income tax and the' superincome tax. The general Customs' ad valorem duty would be raised from li to 15 per cent., the cotton excise duty from 3J to 7 per cent., the, sugar duty from 15 to 25 per cent., the duties on machinery, iron, steel and railway material from 2i to 10 per cent., and on articles of luxury from 20 to 30 per cent. The duties on beer, liqueurs and spirits would be increased by 20 per cent., those on salt and matches would be doubled, and imported yarns would be taxed 5 per cent. The new taxation was expected to yield 29 crcres of rupees (approximately £19,333,000) leaving a deficit of three crores of rupees (approximately £2,000.000). . The Treasurer stated that all proposals for new expenditure' had l been enormously curtailed in view of the abysmal depths the depression in trade had reached. The only solution was to make the revenue meet the expenditure. India could not falter in applying the inevitable remedy. Referring to capital expenditure he said the Government's total liabilities for the ensuing year were fifty-eight croreß of rupees (£38,666,000') -including thirty crores of rupees (£20,000,000) for railways. Tliis would be met by borrowing.

fin converting rupees to sterling in the above message we have reckoned the rupee at 16d and have worked to the neaj«st thousand.]