A DEFICIT.

Dominion, Volume 2, Issue 582, 10 August 1909, Page 5

A DEFICIT.

— 9 —: : . " INDIAN BUDGET—RAILWAY COSTS. , (By 'Telegraph.—Preaß ABsoclatlon.-Oopyrlctat.l London, August 8.

.The Indian Budget shows a deficit-of'three and three-quarter millions, instead of the expected; stfrplus of,;half 'a million. ' .. The deficiency is chiefly duo to lower, re-, ceipts on tho railways, caused by heavier working expenses. • REFORMS Afl"D GROWING OUTLAY. In an" article predicting increased indirect taxation in India, a writer in "Tlie Times" says:."The land tax is as old as India, and it cannot be abolished. ;'On : the other hatod, it cannot be greatly increased. Many are of opinion that the growing expenditure of India will grow with still greater., vigour under the new reforms. Largely increased legislatures, 'new .and increasing establishments, , will cost money, and if the-liberal policy is to'succeed, there must be no hesitation in spending money freely. , Loaves and fishes are as important in Eastern as in Western life, and much, of the unrest in India is due to tho fact that there is not a sufficiency of loaves i and fishes for the oducated classes. . The "price'of the principal food grains (continues to rise. .In tho words of, the ''Trade ; Reviow,' this serious rise 'is not entirely attributable; to : seasonal adversity, though no complete'solution of this interesting economic, problem, has . yet - been propounded.' ;'. ..... "The Indian has a solution, and it seems th 6 obvious solution. ; Salaries must be,increased and wages must rise. The opium • revenuo, which yielded over five millions sterling; liae been surrendered and will be soon a thing, ot tho past, and it may prove difficult to meet the I increasing expenditure. ■ Tho Indian point of I view, which mnst now in tho long run assert itself, will plump for indirect taxation and will findready to hand the existing tariff with its machinery, cheap, effective, and impalpable. This tariff, With its general' diitv. of. 5 per cent, ad valorem on imports and a 3J per cent, duty on totton. goods, yielded .£3,959,710 in tho Inst year under report, while the export duty on rice (4d. per cwt.) brought in ,C6C4,900. In spite of this export duty on an article which is by no means a monopoly, the demand continues to increase, and the export of rice from Burma has risen by steady and heavy increments from 195,000 tons in 1903-4 to 979,000 tons in 1907-8." .