INDIA'S WAR BUDGET

Dominion, Volume 10, Issue 3019, 5 March 1917, Page 5

INDIA'S WAR BUDGET

YEAR CLOSED WITH A SURPLUS INCREASING TAXATION i UNLIMITED WAR. LOAN TO BE RAISED 4 Delhi, March 1Sir William Meyer (Minister for Finance) presented the War Budget, which stated that the year closed with a surplus of £5,600,000, due to an exceptionally favourable monsoon and t(ie remarkable growth of the railway i'aceipts. The heavy_.war expenditure had thrown a heavy strain on tho Indian Government's rosourees, culminating in tho recent restrictions upon the councils. Tho remedies adopted include the purchase of sufficient silver to provide 360,000,000. new rupees, arrangements for tho regulation of exchange, enabling the Government during the current year to- invest in Imperial war loan issues to the extent of

£27,000,000 in paper currency andgolc standard reserves, also to discharge £7,600,000 of the debt." Although tho Indian Government" at present -holds £46,500,000 of British war seourities, of which £35,000,000 is wholly new, tho investment represents a fresh, ib-. source placed at tho Home Government's disposal siuco the war began, independent of private investments in British war loans. -Owing to the unfav- > ourable financial situation from 1914 t«V 1916 India, was unable to make direct pecuniary subvention to the Home Government beyond, the maintenance of the Expeditionary. Forces.

Sir William Meyer confirmed tho Vioeroy's announcement that the Government is prepared to raise an unlimited war loan on the 6amo terms as the British loans, contributing a hundred million pounds to the Imperial Government.

The proceeds of the unlimited war loan would, bo givcnto the Home Government. The remainder of the contribution, ii hundred millions in all, would be effected by India taking over portion of the British AVar Department. Four and a. quarter millions additional lasation would be required,V whichwould be realised as follows:—A supertax on large, incomes, increasing by 100 per cent, flic present juto'export duty, .an increase on the cotton import duty, a surcharge on railway, goods.

On the conclusion of tho speech, .legislation in connection with the proposed taxation was introduced in the council.—Reuler. ' • ' ' * INCREASED COTTON DUTIES ALARM IN MANCHESTER - London, March 2. Manchester is alarmed at the proposal to increase the Indian cotton duties. Opponents of ih3 scheme say that Lancashiro must be protected against an attempt to unduly favour Indian manufactures. They say that tho natives will not benefit, the Bombay mill owners alone will gain, unless the increase is balanced by a connteßvailing excise duty.—Aus-N.Z. Cable Assn.