The increases and decreases in the Budget as compared with the Revised Estimate for 1926-27 in detail are as follows: Notes on the Heads under which the principal variations occur will be found in Appendix I. (See page 22). The above figures include both Central and Provincial revenue. For the purpose of calculating the payment per head, the figures of population have been based on the Census of 1921 (247,003,293), an annual increase of population at the rate of onehalf per cent. being assumed. IV. DEBT TRANSACTIONS AND CAPITAL EXPENDITURE. DEBT TRANSACTIONS. 1926-27. No Sterling loan was issued in 1926-27. In June, 1926, the Government of India issued a 4 per cent. loan in India repayable in 1960-70. It was issued at a cash price of Rs.88 per cent. and provided for subscriptions in India and London in cash and 1926 bonds up to a total of Rs.25 crores (nominal) and in 1927 and 1928 bonds to an unlimited extent. Applications for conversions of 1927 and 1928 bonds were accepted up to 26th June, 1926, and subscriptions in the form of 1926, 1927 and 1928 bonds were taken as equivalent in cash at Rs.101 per cent., 102 per cent. and 106 per cent., respectively, of their nominal value. The Rs.25 crores were subscribed in the form of cash and 1926 bonds within a few hours on the opening day, and for the remainder of the period only 1927 and 1928 bonds were admissible in subscription. The total amounts subscribed were. Lakhs of rupees. Cash 6 per cent. Bonds, 1926, (nominal value 7,61) ... 8,73 ... 2,78 The net amount of Permanent Debt in India was increased by Rs.6 19 crores during the year as a consequence of the issue of the new loan. On the other hand the Floating Debt was reduced by Rs.818 crores, owing to the reduced holding of Treasury Bills in the Currency Reserve. Of the Permanent Debt discharged in India, Rs.12-14 crores represented 6 per cent. Bonds, 1926, which were not converted into the new loan. (28083) B* 4 The Sterling Debt decreased to the extent of upwards of £5,000,000. This figure includes approximately £1,000,000 7 per cent. Stock repaid, £512,000 redeemed of the British War Loan liability taken over by India, £1,968,900 utilized for the discharge of Railway debentures and £1,347,200 representing the capital portion of the Railway Annuities. The Delhi-Umballa-Kalka Railway was purchased by Government during the year for £3,000,000. The net receipts from Post Office Cash Certificates was Rs.5,71 lakhs. 1927-28. The Budget provides for a capital outlay of Rs.25 crores on the construction of State Railways, Rs.58 lakhs on Posts and Telegraphs, Rs.39 lakhs on Vizagapatam Port; Rs.19 lakhs on Currency Note Printing Press; Rs.33 lakhs in respect of the commuted value of pensions, and Rs.70 lakhs on the new Capital at Delhi; for the discharge in India of: Rs.33,90,000 loans which were not presented for repayment on maturity; Rs.17,50,00,000 6 per cent. Bonds, 1927; Rs.2,60,000 (net) other loans; and for the discharge in England of : £547,000 India Railway Debentures; £1,393,900 for part capital redemption of the railway annuities created in purchase of railways; £537,600 redemption of liabilities assumed in respect of British 5 per cent. War Loan, 1929-47; and £200,000 for the statutory sinking funds established in connection with the purchase of the East Indian, Eastern Bengal, and the Scinde Punjab and Delhi Railways. The Budget did not provide for the issue of a Sterling Loan, but it assumed the receipt from a Rupee Loan in India of Rs.27 crores, and net receipts of Rs.64 crores and Rs.5 crores from Savings Bank deposits and Post Office Cash Certificates, respectively. The Rupee Loan was opened on the 18th July 1927 in India and in London. It took the form of a 4 per cent. loan, repayable in 1934-37; it was issued at a cash price of Rs.94 per cent. and provided for subscriptions in 1927 and 1928 bonds from 18th July and in cash from 20th July. Subscribers of 1927 and 1928 bonds. were to receive a cash bonus of Rs.64 and Rs.12, respectively, for each Rs.100 (nominal) of bonds converted. The loan was to be closed to subscriptions in cash and 1927 bonds when the amount subscribed in these forms approximated Rs.24 crores, but in any case not later than 30th July, up to which date subscriptions in the form of 1928 bonds could be made without limit. If the loan was oversubscribed on 20th July, partial allotment was to be made in the case of cash subscriptions. The total amounts subscribed were approximately, Cash Rs.816 lakhs; 1927 Bonds Rs.719 lakhs, and 1928 Bonds Rs.405 lakhs; grand total Rs.1940 lakhs. The amount of the permanent and floating public debt of the Government of India (Central Government) outstanding is given in the following table. The figures include debt incurred on behalf of Provincial Governments, the debenture stocks of various railways taken over by the Secretary of State on the transfer of the lines, and the capital value of liabilities undergoing redemption by way of terminable railway annuities. Reserve. Excludes Post Office Cash Certificates and includes Treasury bills issued to the Paper Currency Includes liability for British Government 5 per cent. War Loan, 1929-47, taken over by India. The classification of the public debt of the Government of India and Provincial Governments combined is given on page 16. RAILWAYS. On the 31st March, 1926, the length of railways in India open for traffic was 38,579 miles, of which 341 miles were opened in the preceding twelve months. The total route mileage under construction at the close of the year was 2,447 miles. (See also App. II (b) (i) page 34. The capital expenditure on railways shown in the Government Accounts for 1925-26 and Estimates for 1926-27 and 1927-28, is as follows: * The figures in the above table have been arrived at after allowing for adjustment in respect of exchange. Excludes £3,500,000 Great Indian Peninsula Railway Debenture Stock, the liability for which was taken over by Government on termination of the Company's contract, and also £2,575,000 Great Indian Peninsula Railway Stock paid off by the Government. § Includes £3,000,000 paid to the Delhi-Umballa-Kalka Railway Company in purchase of their line. In addition to the above figures, capital expenditure is incurred on branch lines from funds deposited by Branch line Companies or advanced by the Government. The following table shows the capital outlay on all State lines up to the end of the year and the net return obtained. (See also Appendix II (b) (ii) page 35):— In the Budget for 1927-28 provision has been made of Rs.58 lakhs for capital outlay not charged to revenue on the Indian Postal and Telegraph Department. The corresponding figures for 1926-27 were:-Budget Estimate, Rs.59-32 lakhs; Revised Estimate, Rs. 3135 lakhs. |