INDIA'S GREATNESS.

Taranaki Daily News, Volume LVII, Issue 228, 5 March 1915, Page 7

INDIA'S GREATNESS.

BUDGET SHOWS DEFICIT. NO EXTRA TAXATION PROPOSED. Delhi, March 2. The Finance Minister presented to the Legislative. Council the annual financial statement. He announced a deficit for the current year of two and three-quar-ter millions sterling, and forecasted a similar deficit for the. incoming year. The deficit is the outcome of the effects of the war on customs and railway receipts. No additional taxation is proposed, as the defiicit is dun to temporary special causes and India's unproductive debt is very small. Reviewing the economic effects of the war, the Minister stated that the budget proposal was based on the supposition that the war w-ould last throughout lDlo-10. An attitude of caution was therefore essential.

From August to December imports had declined by £I7.Ut)O,OU" or 32 per cent., and exports by £27,000,000, or 42 per cent. Tin, full irrigation and a reduced railway programme would be carried out, involving eight millions, while only a quarter of a million would be spent on the new Delhi. India had been much buffetted, but the inherent strength oilier financial and economic position had been demonstrated at every turn. Her loans and paper money stood practically unimpaired. An unprecedented drain on the savings bank had been met. There had boon no crash in the exchange such as pessimists had sometimes foretold. I n the world's crisis the measures taken to maintain the stability of the rupee had met with full success. A re-adjust-ment of trade was already taking place,"' and at no time had it been necessary to consider the expedient of a moratorium. India had already faced all her obligations without having to fall back on outside resources fo rany extraordinary measures of help. To a large extent her additional borrowings would be taken from her own resources. The Minister said he looked to the future with a sober confidence which was materially strengthened by the agricultural situation. Monsoon and winter rains had been abundant, and they could expect exceptionally bountiful crops. India's cost of sending troops to the front was estimated at two millions in the current year awl four and thivequarter millions in the coming year. The budget was well received, being considered a proof of the remarkable strength of the eeiinirv's resources.