23. The increase in expenditure in Budget is due to larger provision for development of forests in the Andamans and to the expenditure on the Security Printing Press at Nasik. The expenditure on the last (including expenditure of a capital nature) is expected to be 11 lakhs in 1924-25 and 33 lakhs in 1925-26. 24. The increase in 1924-25 under Revenue Expenditure is due to works connected with the erosion of the river Indus at Dera Ismail Khan. Bross eceipts. Working penses. nterest on bt. pital stlay arged to venue. pital tlay not arged to venue. INDIAN POSTAL AND TELEGRAPH DEPARTMENT. 25. The estimated amount of gross receipts in Revised is 8 lakhs less than the amount in the original Budget estimate. This decrease is only apparent, as, in the Budget, 19 lakhs were taken as the amount payable to the Provincial Governments as their share of the revenue from unified stamps whereas, in Revised, 42 lakhs have been so included. The question of increas ing the assignment to Provincial Governments has been under consideration for some time and it has recently been decided to give them additional assignments based on the growth in the revenue from General Stamps since 1906. It has been roughly estimated that the increase will be about 23 lakhs. Excluding this increase in the assignment, the gross receipts are about 15 lakhs better, as a result partly of trade recovery and partly of the enhancement of charges for various services, e.g., charge for redirection of parcels and increase in insurance. 26. The increase of about 3 lakhs in Revised as compared with the Budget of the current year is explained chiefly by the fact that the pensionary charges are now expected to be 5 lakhs more. In the Budget for 1925-26 the working expenses show an increase of 54 lakhs over the Revised estimate for the current year. Of this increase, 15 lakhs are due to pensionary charges being estimated on a liability basis and about 15 lakhs more on account of the fact that the Department has to make a specific provision for a depreciation fund and that the amount provided on a theoretical basis worked out on a consideration of the life of existing assets is more than the amount spent in the current year on renewals and replacements. The rest is due to some new items of expenditure (6 lakhs) approved by the Standing Finance Committee and to the ordinary annual increase in establishment charges due partly to further increments accruing in the case of clerks on a time scale of pay. 27. In the Budget and Revised estimates for the current year interest has been taken on the block capital value of the assets as in the Finance and Revenue Accounts. In the Budget for 1925-26 interest is based on the capital outlay after allowance has been made for depreciation. 28. The minus figures under this head are due to the fact that the value of stores issued from stock which is taken as a deduction from the debits under this head, has been for some years, greater than the outlay on fresh stores and cn post office buildings, the expenditure on which is debited to this head. The stores issued from stock during the current year were, owing to the postponenient of certain capital works, less than anticipated, and the credits to this head are therefore less. The system of keeping stores in a suspense account under revenue which is responsible for these fluctuations in expenditure is now being abandoned and from 1926-27 onwards, there will be no minus entries under this head. During 1925-26, however, the value of the stores in stock on the 1st April 1925 will, in the course of the year, be credited to revenue as they are issued, fresh purchases being taken to capital. This accounts for the fact that the credits in the next year are more than in the current year, in spite of increased expenditure on postal buildings. 29. The decrease in Revised is due to the postponement of certain capital works already referred to. The increase in Budget is partly due to the change in the system of accounting for stores and also to the fact that in the first few years when the depreciation fund will be slowly built up, all renewals and replacements will be allowed to be met out of capital. INDO-EUROPEAN TELEGRAPH DEPARTMENT. 30. The Revised estimate for the current year is about 6 lakhs less than Gross the Budget estimate which was based on inaccurate data. Receipts. 31. The increase in Budget 1925-26 as compared with Revised 1924-25 is Working due partly to the increase in pensionary charges as a result of the introduction expenses. of the new system of accounting and partly to payment of arrears of rental of the Central Persia Telegraph line (187 lakhs). Debt. 32. The provision in Budget represents interest on the capital assets of the Interest on department after allowing for depreciation. 33. The difference between Revised 1924-25 and Budget 1925-26 is due to Capital outlay the fact that payments on account of the new cable ship are £63,000 and charged to £12,000 in Revised and Budget respectively. revenue. the Capital outlay 34. As in the Indian Postal and Telegraph department the debits for purchases of new stores will be taken to "56-Capital" with effect from not charged 1925-26. INTEREST RECEIPTS. to revenue. TOTAL TOTAL RECEIPTS 25,02,143 17,40,666 1,60,83,154 1,56,09,000 2,10,91,000 1,96,90,000 12,86,888 *,96,003 73,03,982 67,56,000 78,35,000 65,63,000 1,11,00,700 1,15,70,696 3,16,59,620 3,17,25,000 3,79,59,000 3,60,44,000 India. England, 35. It was proposed in the Budget of the current year to credit to revenue a sum of 9 lakhs representing the difference between the full nominal value and the purchase price of the securities purchased for the sinking funds of the 5 per cent. rupee loans. On the advice of the Auditor General, who considered that this procedure was open to objection from an accounts point of view, it has been decided to revert to the old procedure and not to take a credit to revenue on this account. The consequent decrease in the Revised is partly set off by increased receipts from interest on loans by the Central Government. 36. The increase in Revised is due partly to larger cash balances available for investment and partly to changes in investments of the Gold Standard Reserve. It is not expected that the former cause will operate to such a large extent next year. EXPENDITURE ON ACCOUNT OF INTEREST AND REDUCTION OR Interest on Debt other Interest on total Debt- 19,05,17,484 17,66,53,811 20,10,52,772 20,00,00,000 20,13,26,000 20,58,96,000 7,23,92,711 8,65,97,278 10,26,95,582 10,48,90,000 12,55,54,000 13,07,64.000 3,70,80,095 4,55,69,437 4,65,79,673 4,54,00,000 4,66,34,000 4,35,88,000 9,22,00,832 9,83,68,192 11,22,14,021 12,41,63,000 12,58,17,000 13,64,44,000 4,24,61,280 4,24,28,620 4,34,72,394 4,59.97,000 6,51,39,000 7,29,17,000 2,16,85,936 2,26,50,537 2,00,03,722 1,99,09,000 2,41,94,000 2,43,05,000 15,63,48,048 16,34,47,349 17,56,90,137 19,00,69,000 21,51,50,000 23,36,66,000 12,18,481 12,18,882 11,92,750 12,41,000 12,41,000 12,50,000 56,81,015 59,16,002 63,88,844 71,00,000 70,75,000 69,66,00 2,58,41,800 3,02,00,692 3,75,47,098 4,46,08,000 4,30,33,000 4,95,34,00 Interest on Ordinary Debt. 11,09,00,946 10,80,37,601 12,55,09,198 10,72,72,000 10,67,39,000 8,84,94,000 |