During the past five years the state of Indian finances
has gone from bad to worse, and the Budget for this last year will probably show a larger deficit even than in 1921-22—probably double the amount. Income-tax has fallen far short of expectation, while posts and tele- graphs have failed and railways have been run at a loss. Thus a very formidable task confronted Sir Basil Blackett, the new Finance Minister, on his arrival in India two months ago. That his Budget shows a small surplus is a considerable achievement. The able recom- mendations of Lord Inchcape and his Retrenchment Committee have come too late to be fully incorporated in the Budget proposals, and the main features in Sir Basil Blackett's programme are military reductions and an increase in the salt tax. We hope that the Legislative Assembly will unanimously support the Government's attempt to restore financial equilibrium, and that the opposition shown last year to the levy on salt will not be repeated.
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