INDIAN REFORM

Evening Post, Volume CV, Issue 89, 14 April 1923, Page 18

INDIAN REFORM

HAMPERED BY LACK OF FINANCE.

The financial position of the various provincial Governments continues to give serious concern alike to ths authorities and the general public, writes an Indian correspondent of the "Manchester. Guardian." It is felt that the reforms are in imminent danger of foundering on the rock of finance; the approach of the elections and the certainty of heavy deficits in «very provincial budget, with everything at a standstill, serve only to increase the gloom. Bengal and Madras, in particular, have tried to face the situation by heavy taxation and severe retrenchment, but the deficits are expected to be 65 lakhs and -12 lakhs respectively. The' Punjab, where the political situation is extremely difficult, has 'done* little either by extra taxation or retrenchment, and the deficit may reach a figure of 130 lakhs.' Similar stories come from the other provinces, practically .all of which are in a state of approaching bankruptcy. It is widely believed that Lord Incheape's Committee will succeed in making large reductions, in expenditure, and in view of the favourable. condition of the harvest and reviving trade and, commerce it is hoped that the Goernment of India will be in a position to render substantial assistance to the most needy of the local Governments.

Meanwhile, the Liberal Federation of Bengal has addressed a weighty representation to the Secretary of State for India urging, among other things, the appointment of an impartial committee to §o into the matter, giving full opportunities to each province to represent its case as between itself,' other provinces, and the Central Government. One suggestion made shows improvements in the awards of the. Meston Committee and a belief tliat financial recovery will follow. More important still, it is held that the poltical effect of the appointment of such a. committee will be very great, as every province will have the opportunity of bringing together men of sane views, and thus counteract the influences now at work to undermine the British connection.