88. The details of the entries against item (i) in the preceding paragraph are as follows::

89. The resources available in the two years for meeting the above disbursements are estimated as follows::

90. The total receipts from the new rupee loan, subscriptions for which Rupee loans were received from the 28th July 1924 amounted to R13,21 lakhs. The and cash receipts consisted of R7,28 lakhs from the 5 per cent. Bonds, 1933, and certificates. R5,93 lakhs from the 5 per cent. Income-tax free loan, 1945-55. War Bonds, 1925 and 1928 of a total value of R23 lakhs were received in payment of subscriptions to the loan. The gross receipts and payments on account of cash certificates are expected to amount to R6,06 lakhs and R1,46 lakhs respectively during the current year, the net receipts thus amounting to 4,50 lakhs.

91. The entry of R12 crores relating to the proceeds of the rupee loan to be raised next year is as usual provisional and Government reserve discretion to vary the borrowing programme during the year. The net receipts from cash certificates next year are expected to amount to R4,20 lakhs.

92. The Budget estimate assumed that there would be a net deposit Post office of R1,00 lakhs into postal savings banks in the current year; the net deposit Savings is now expected to amount to R42 lakhs. The Budget estimate for 1925-26 Banks. provides for a net deposit of R75 lakhs.

260

BUDGET FOR 1925-26.

93. The disbursements enumerated in paragraph 87 are in excess of the available resources detailed in paragraph 89 by R6,87 lakhs in the current year and R11,14 lakhs for next year. The cash balance in India at the end of 1924-25 is expected to be 24,27 lakhs against R31,14 lakhs at the beginning of the year and will be reduced to R13,13 lakhs by the end of 1925-26.

A. C. McW ATTERS.

The 30th March 1925.

STATEMENT SHOWING THE GROSS EXPENDITURE

OF THE CENTRAL GOVERNMENT AS IN THE BUDGET ESTIMATES FOR 1925-26, PRESENTED TO THE LEGISLATURE, DIVIDED BETWEEN. VOTED

AND NON-VOTED.

(vide paragraph 57 of the Finance Member's Budget speech).

APPENDIX I.

MEMORANDUM ON THE MILITARY ESTIMATES FOR 1925-26. The information given in the detailed estimates has been amplified by the addition of the actual figures for 1923-24, and the revised estimates for the current year, instead of the comparison between budget figures only given in the previous year's statement. A comparison with actuals of previ ous years has now some value. The accounts of years immediately prior to 1923-24 were still affected by the abnormal conditions prevailing in the aftermath of the Great War and were especially disorganised by miscellaneous adjustments of war expenditure, but from the year 1923-24, in which the recommendations of the Indian Retrenchment Committee were carried into effect, the accounts may be taken as expressive of expenditure on a scale approaching that of a normal post-war establishment. The actuals for 1923-24 and the revised estimate for the current year have been given for the major heads of account. Under the detailed heads the parison is between the budget for the current year and that for 1925-26 in order to bring out the considerable reductions proposed for the latter year. Actuals for 1923-24 have been added for complete minor heads without going into further detail.

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2 The record of the years 1920-21 to the present day is one of continuous and substantial reduction in military expenditure. The actual net expenditure finally recorded in the Finance and Revenue Accounts of the Government of India is as follows:

In 1920-21 expenditure was swollen by abnormal charges of Rs. 7 crores on the North-West Frontier and of Rs. 13 crores on the occupation of Waziristan, while in the following year Rs. 6 crores were expended on Waziristan operations. In November 1922, the Indian Retrenchment Committee commenced their review of the expenditure of the Central Government. They had then before them the net military estimates for 1922-23 which amounted to Rs. 673 crores and the result of their exhaustive examination of every aspect of military administration was a recommendation that the net budget for 1923-24 should be fixed at Rs. 57 crores subject to such addition as would be necessary on account of delay which must necessarily ensue in carrying out the proposed changes. In their final review of military expenditure they envisaged further large automatic savings, and they considered that, in subsequent years, expenditure would be susceptible of reduction to Rs. 57 crores and ultimately to Rs. 50 crores provided a further fall in prices took place. They were careful to note that the Commander-in-Chief was unable to accept this latter estimate. The Legislative Assembly have been, from time to time, apprised of the progress of retrenchment operations and the record of the actual cumulative effect of these reductions must be of interest. The budget estimate for 1923-24 amounted to Rs. 62 crores after allowing for retrenchments agreed upon and for the necessary "lag" in carrying them into effect. It