THE INDIAN BUDGETS

New Zealand Herald, Volume LIV, Issue 16480, 5 March 1917, Page 5

THE INDIAN BUDGETS

SURPLUS OF £5.600,000. UNLIMITED WAR LOAN. £100,000,000 FOR BRITAIN/ Renter. •:.•' ....,' DELHI,* March 2: Sir William. S. Meyer, Financial member of the Council of India, presented the War Budget to V the Council to-day. The year closed with a.surplus of £5,600,000,. due to the exceptionally favourable, monsoon and the remarkable growth of the railway receipts. : War expert diture had thrown a heavy strain on ; the Indian Government's resources, culminating in recent restrictions. The remedies adopted include the purchase of sufficient silver to provide 000,000 new ; rupees. Arrangements had been made for the regulation of exchange, enabling the Government during the current year to invest in Imperial war issues to the extent of £27,000,000 in paper currency and gold standard reserves, and also to discharge £7,500,000 of debt. The Indian Government at present holds £46,500,000 of British war securities, of which £35,000,000 is wholly new. investment, This represents the fresh resources placed at the Home Government's disposal since. the war began, independently of private investments in British war | loans. . Owing to the unfavourable] financial situation from 1914 to 19.16,! India-was unable to make a direct i pecuniary subvention to the Home Government beyond the maintenance, of the Expeditionary Forces; i Sir Wm. Meyer confirmed the Viceroy's announcement that the I Government was prepared to raise an unlimited war loan on the same; terms as the British loans, and intended to contribute £100,000.000 to J the Imperial Government. The proceeds of the unlimited ..war loan would be given to the Home Government., and.the remainder of the contribution—£loo,ooo,ooo in a'.;would. be effected by India taking over a portion of the British War Department's liabilities. .. ..:-■... A total of £4,250.000 additional taxation will be required, which it is intended shall be realised as. fol-

lows --Supertax.;, on large:'income's, increasing by .100 per cent': the. pre sent jute, .export duty,., increase on cotton import duty, and a surcharge on railway goods. Legislation in connection with the proposed taxation will be introduced into the Council.

INCREASED COTTON DUTIES.

ALARM IN MANCHESTER. A. and N.Z. Cable. LONDON, March 2. Manchester is alarmed at the proposal to increase Indian cotton duties... Opponents of the scheme say that Lancashire must be protected against the attempt unduly to favour Indian manufactures. They say that the natives will not benefit and that Bombay mill owners: will alone . gain unless the increase.be balanced by a countervailing excise duty ■