INDIAN AFFAIRS

Hokitika Guardian, 4 March 1921, Page 3

INDIAN AFFAIRS

CABLE NEWS.

“ | INDIA’S FINANCE. ' j THE BUDGET PROPOSALS. | AUSTRALIAN AND N.Z. CABLE ASSOCIATIOI reuter’s telegrams. i , DELHI, March 1. , hi the Legislative Assembly, the Mil ’ ister for Finance presented the Bui , get, which contained proposals fc , heavy taxation. He referred to th , world’s trade depression, which led t the inability of India’s customers t buy her products. Government’s at I tempts to maintain the rate of ex change had failed, and at the presen moment there was no practical ste] apparent whereby the depression couh be ended. Meanwhile there was m cause for pessimism/ The position wa due to causes external to India, anc should before long cure itself. He stated that India’s deficit for the ciir rent year amounted to twelve crorei rupees and he anticipated a deficit ol eighteen crores during the coming year. The military expenditure line 1 amounted to seventy crores, which was J twenty crores in excess of the estimate, j due to frontier- operations. There liacl been a large increase in civil expenditure due to large advances to pay railway telegraphic and other employees. The Minister said lie hoped, with a J good monsoonal season that the exchange rate would show a substantial j recovery. His Budget figures were all ) based on the average exchange of a | shilling and eightpenee. Proposals tor j extra taxation include the increase of i the general ad valorem duty from 7J to j 11 per cent, duty on luxuries to 20 per j cent; liquor, tobacco, imported sugar duties and railway rates will also he considerably increased. Postage rates will lie doubled and income tax maximum risen amj super tax increased. No increase will be made on cotton excise goods. This was for the special financial reason that'it was hoped to obtain nineteen crores from additional taxation wlfieli would provide for the estimated deficit and leave a surplus for dealing with military expenditure. The Minister said-the present position of affairs in Central Asia, Indian Frontier and certain factors within India, rendered a further reduction of the fighting forces, unjustifiable.