INDIA

Taranaki Daily News, 5 March 1917, Page 2

INDIA

A SPLENDID BUDGET. Reuter Service. Delhi, March 1. Sir William Meyer presented the Indian War Budget. The year closed with a surplus of £5,600,000, which was due to the exceptionally favorable monsoon and the remarkable growth of railway receipts. The heavy war expenditure had thrown a heavy straiu on the Indian Government's resources, culminating in the recent restrictions. The remedies adopted included the purchase of sufficient silver to provide 360 million new rupees, and arrangements for the regulation of exchange, enabling the Government for the current year to invest in Imperial war issues to the extent of 27 million sterling. Paper currency and gold standard reserves would also discharge £7,500,000 of the debt. The Indian Government at present holds £46,500,000 of British war securities, of which 35 million are wholly new and the investment represents a fresh resource placed at the Home Government's disposal, since the war began, independent of private investments in British war loans.

Owing to the unfavorable financial situation in 1914-15 India was unable to make a direct pecuniary subvention to the Home Government, beyond the maintenance of the expeditionary forces. Sir William Meyer confirmed the Viceroy's announcement that the Government was prepared to raise an unlimited war loan on the same terms a 6 the British loans, contributing 100 million to the Imperial Government. The proceeds of the unlimited war loan will be given to the Home Government and the remainder of the contribution of a hundred millions in all will be effected by India taking over a portion of the British War Department. Additional taxation of £4,250,000 will be required, which will be realised as follows:—The supertax on large incomes will be increased by 100 per cent. ,the present jute export duty will be increase ed, a cotton import duty will be imposed, and a surcharge on railway goods. At the-conclusion of the speech legislation in connection with the proposed taxation will be introduced in the Council.