INDIA’S FINANCES

Hokitika Guardian, 10 May 1932, Page 3

INDIA’S FINANCES

FEDERAL COMMITTEE’S PLAN

A SURPLUS FORECAST

(British Official Wireless.)

RUGBY, May 7

The Federal Finance Committee, ones of toe committeus which has been continuing the discussions of the Indian Round Table Conierence, has present-’ ed its report. The Committee’s principal task was to subject to a test of figures the suggested classification or revenues and to estimate the probable fimaneiai position of the Federal and Provincial Government under the proposed I'ederai scheme. In making their forecasts the Committee have endeavoured to estimate tlie 'likely situation in the earlier years of the federation under more or less normal conditions, and on tne assumption that the recommendations in other fields of the Indian Rounu table Conference and Burma Round Table Conference have carried out. A surplus of £3,380,000 is forecast, for the Federal Government revenue is estimated at 64.45 millions and the expenditure at 61.07 millions. The provincial .forecasts show that all the provinces have potentially a delitie, except the United provinces ami the Punjab, tbe aggregate not provincial deficit being 2.87 million pounds, The total values of readily identifiable assets to be taken (Tver by the iedoinl Government are estimated at 791 miluon pounds. The Government of India’? total liabilities are estimated as 887 million'-, but tbe Committee point out the probable debt in this estimate has been taken a-s its nominal figure. For the purpose of assessing the present da,' capital liabilities it is suggested tli debt might be written down on a five per cent basis by something like 129 million pounds -and’ the Committee have come to the conclusion that if the Federal Government assumed the responsibility lor the whole of the pre-federation debt, its obligations would be covered by the assets taken

over. Tlio Committee states that frcls seem to show that, given a recovery from the present -abnormal economic conditions, the financial scheme outlined in the Peel report endorsed by the Federal Structure Committee of the Conference, provides a foundation on which an Indian I’ ('deration can bo established and can begin it- works.