ACCOUNTS, 1925-26.

It will be seen from the tables on pages 6 and 7 that the final accounts for 1925-26 show a surplus of Rs.3,31,18,187, which is 2 crores more than the Revised Estimate prepared a year ago. The main factors contributing to this improvement were increased revenue from Customs, Rs.93 lakhs (of which protective duties accounted for Rs.32 lakhs), Railways Rs.17 lakhs, and Posts and Telegraphs Rs.15 lakhs, and decreased expenditure of Rs.28 lakhs on Military expenditure. On the other hand, receipts from Taxes on Income were Rs.39 lakhs and from opium Rs.24 lakhs less than expected.

REVISED ESTIMATE 1926-27

The Revised Estimate of 1926-27, although showing a balanced position for the reasons stated below, anticipated a surplus of Rs.3 10 lakhs as compared with a budgetted surplus of Rs.5,31,000. Rs.28 lakhs of this surplus has been given to Bombay as a special measure of relief to that province and the balance, Rs. 2.82 crores, has been carried forward to a special deposit head "Revenue Reserve Fund" for two purposes: (1) to admit of the non-recurring remission in 1927-28 of the balance of the provincial contributions together with an equilibrium budget for that year, and (2) the balance of about Rs.1 crore to be kept as a nest egg for use in connection with the inauguration of the proposed Gold Bullion standard and Reserve Bank.

The principal variations from the Budget figures are shown below and explanations of the differences are given under their respective heads in Appendix I. (see page 22).

BUDGET, 1927-28.

In framing the Budget for 1927-28 the Government of India estimated that, after allowing for the continuance of the crediting to revenue of the interest on the securities in the Paper Currency Reserve and the surplus of the Gold Standard Reserve over £40 million, there would be a surplus of Rs.3.7 crores on the basis of the existing level of taxation. The Government of India proposed the following changes in taxation which would result in a net loss of Rs. 6 lakhs of revenue. Tea: to abolish the export duty, but to assess the profits of tea companies at 50 per cent. of their total net income instead of 25 per cent. of profits. Hides: to abolish the export duty. Motor cars, etc. to reduce the import duty from 30 to 20 per cent. ad valorem and the duty on tyres and tubes from 30 to 15 per cent. Cheques and other bills of exchange payable on demand to abolish the Stamp duty as recommended by the Royal Commission on Indian Currency and Finance. Rubber stumps and seeds to abolish the import duty of 15 per cent. Unmanufactured tobacco to raise the import duty from 1 rupee to 1 rupees per pound.

The Government of India also proposed an equilibrium budget for 1927-28 by the utilization of Rs. 3 crores of the expected surplus for the permanent remission of part of the provincial contributions, and by crediting to revenue from the Revenue Reserve Fund, formed from last year's surplus, an amount (approximating Rs. 171 lakhs) sufficient to provide for the non-recurring remission of the balance of the contributions.

The Legislature acquiesced in the Government of India's proposals with the exception of the proposed abolition of the export duty on hides which remains in force. The rates of Salt duty, Postage, Income Tax and Super Tax remain unchanged.

The following reductions were made by the Legislative Assembly in the course of the voting of the demands for grants for 1927-28:

Of these, the Governor General in Council has, under section 67A(7) of the Government of India Act, decided, as essential to the discharge of his responsibility, to restore the following amounts:

In the Budget, as finally passed, the Net Revenue and Expenditure were estimated as follows:

Rs.

86,67.63,000

86,67,63,000

As compared with the Revised Estimate for 1926-27, these figures show a decrease of Rs.93,45,000 in net revenue and expenditure, respectively.

(28083)

ACCOUNTS, 1925-26.

It will be seen from the tables on pages 6 and 7 that the final accounts for 1925-26 show a surplus of Rs.3,31,18,187, which is 2 crores more than the Revised Estimate prepared a year ago. The main factors contributing to this improvement were increased revenue from Customs, Rs.93 lakhs (of which protective duties accounted for Rs.32 lakhs), Railways Rs.17 lakhs, and Posts and Telegraphs Rs.15 lakhs, and decreased expenditure of Rs.28 lakhs on Military expenditure. On the other hand, receipts from Taxes on Income were Rs.39 lakhs and from opium Rs.24 lakhs less than expected.

REVISED ESTIMATE 1926-27

a

The Revised Estimate of 1926–27, although showing a balanced position for the reasons stated below, anticipated a surplus of Rs.3 10 lakhs as compared with a budgetted surplus of Rs.5,31,000. Rs.28 lakhs of this surplus has been given to Bombay as special measure of relief to that province and the balance, Rs. 2-82 crores, has been carried forward to a special deposit head "Revenue Reserve Fund" for two purposes: (1) to admit of the non-recurring remission in 1927-28 of the balance of the provincial contributions together with an equilibrium budget for that year, and (2) the balance of about Rs.1 crore to be kept as a nest egg for use in connection with the inauguration of the proposed Gold Bullion standard and Reserve Bank.

The principal variations from the Budget figures are shown. below and explanations of the differences are given under their respective heads in Appendix I. (see page 22).

BUDGET, 1927-28.

In framing the Budget for 1927-28 the Government of India estimated that, after allowing for the continuance of the crediting to revenue of the interest on the securities in the Paper Currency Reserve and the surplus of the Gold Standard Reserve over £40 million, there would be a surplus of Rs.3.7 crores on the basis of the existing level of taxation. The Government of India proposed the following changes in taxation which would result in a net loss of Rs. 6 lakhs of revenue. Tea: to abolish the export duty, but to assess the profits of tea companies at 50 per cent. of their total net income instead of 25 per cent. of profits. Hides: to abolish the export duty. Motor cars, etc. to reduce the import duty from 30 to 20 per cent. ad valorem and the duty on tyres and tubes from 30 to 15 per cent. Cheques and other bills of exchange payable on demand: to abolish the Stamp duty as recommended by the Royal Commission on Indian Currency and Finance. Rubber stumps and seeds to abolish the import duty of 15 per cent. Unmanufactured tobacco to raise the import duty from 1 rupee to 14 rupees per pound.

The Government of India also proposed an equilibrium budget for 1927-28 by the utilization of Rs. 3 crores of the expected surplus for the permanent remission of part of the provincial contributions, and by crediting to revenue from the Revenue Reserve Fund, formed from last year's surplus, an amount (approximating Rs. 171 lakhs) sufficient to provide for the non-recurring remission of the balance of the contributions.

The Legislature acquiesced in the Government of India's proposals with the exception of the proposed abolition of the export duty on hides which remains in force. The rates of Salt duty, Postage, Income Tax and Super Tax remain unchanged.

The following reductions were made by the Legislative Assembly in the course of the voting of the demands for grants for 1927-28:

Of these, the Governor General in Council has, under section 67A (7) of the Government of India Act, decided, as essential to the discharge of his responsibility, to restore the following amounts:—

In the Budget, as finally passed, the Net Revenue and Expenditure were estimated as follows:

Net Revenue

Rs.

86,67.63,000
86,67,63,000

As compared with the Revised Estimate for 1926-27, these figures show a decrease of Rs.93,45,000 in net revenue and expenditure, respectively.

(28083)

B✶ 3