On Wednesday the financial statement of the Government of India
was presented by Mr. E. N. Baker, the Finance Member of the Governor-General's Council. The financial year 1906-7 shows a surplus of 21,326,100, as against the estimated 2874,100. The improvement is due chiefly to increased revenue from opium, irrigation, and the Mint, and to a reduction in expenditure. From the surplus the sums accruing to the provincial Governments under their standing agreements with the Government of India must be deducted. The net improvement in the position of the Government of India then stands at 2452,000. At the beginning of the year the agricultural prospects were unfavourable, but the harvests had been good over nearly the whole of India except in some Eastern districts. The Budget for 1907-8 provides for the alteration of the Salt-tax from the rate of one and a half rupees per maund in India and one rupee in Burmah to a uniform rate of one rupee. The cost of this remission is estimated at 21,266,700. Postal rates are to be reduced at an estimated cost to the Exchequer of 2146,600 a year, but as the reduction will not come into force till October, 1907, the estimated cost in the new Budget is only 273,300. The total estimated revenue is 275,012,800, and the total estimated expenditure 274,238,100, leaving a surplus of 2774,700.
