Affairs of the East India Company: Appendix A (1) No. 7

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No.7. -Copy of a MINUTE of THE GOVERNOR GENERAL of INDIA, dated 30th October 1829, concerning the Indian Financial Estimates for 1829-30.

THE GOVERNOR GENERAL.

EXCLUSIVE of Europe Stores, which being brought into our Accounts as a Receipt from England, and a Territorial Disbursement here, form Part of the Charges stated in the Accountant General's Estimate, the Advances made in England during the past Six Years appear to have averaged about £1,500,000; and although under the present Act the Territory has the Benefit of a more advantageous Exchange in its Accounts with Commerce, we must, I apprehend, in looking to Futurity, take the Pound Sterling as equivalent, at the lowest, to Ten Rupees; unless, therefore, what is not likely, the Home Charges shall be reduced, we shall require a Local Surplus of at least 1½ Crore, to keep Things square. It would be no more than prudent to seek an Addition of 50 Lacs, to meet Contingencies, and to provide for the Liquidation of Debt, so that we can scarcely be said to have placed the Finances of the Country on a solid Footing until we shall have secured a Local Surplus of 2 Crore of Rupees.

Now the Sketch Estimate for the current Year holds out the Prospect of a Surplus to the Amount only of 84.00.000 Rupees; and of the Receipts for which Credit is taken, 22.40.000 Rupees form no Part of our permanent Income. On the Basis of that Estimate, therefore, we can only reckon upon a Surplus of 61.60.000, leaving the Sum of 1.38.40.000 Rupees to be provided for by Reduction of Charge or Increase of Revenue, in order to reach the Position on which I have above assumed it to be necessary to place the Finances.

See Statement annexed.

If, following the Principle adopted by the Honourable Court in their Letter of the 12th December 1827, we compare the estimated Charges of the current Year, exclusive of Europe Stores, and of Advances for Salt and Opium, with those of 1823-24, we shall find in the Estimate an Excess of 1.47.79.000 Rupees still remaining to be retrenched, in order to place the Finances in the Position indicated by the Honourable Court.

This Result appears to shew that I have not exaggerated the Exigency which Government has to meet, by requiring a net Surplus of 50 Lacs, and by adding to the Home Charges the Excess which (estimating these Charges in Rupees) the Alteration I have thought it prudent to anticipate in the Rate of Exchange would occasion, and that on the whole we should not rest satisfied with a Surplus of less than 2 Crore.

A superficial Examination of the several Items of which the Receipts and Charges are composed would enable me to exhibit Grounds for anticipating a considerable Amelioration in future Years, supposing the Tranquillity of the Country not to be disturbed; but we shall still apparently be left at a great Distance from the Point indicated by the Home Instructions, unless some decided and early Steps be taken to expedite Retrenchment. It will not suffice to ask, whether it be desirable to maintain this or that Thing. It seems to be now necessary for the Government distinctly to ascertain what Amount of Income it can securely reckon upon, and then to decide how the Deficiency is best to be supplied; starting with the Determination that it must at all events be supplied without the further Accumulation of Debt, already ruinously heavy.

With the above Impression, I would suggest that the Civil Finance Committee be authorized to extend the Sphere of their Inquiries to every Item and Cause of Charge without Exception; and that the Estimate for the current Year be sent to them, that they may, in Communication with the Accountant General, endeavour to lay before Government a clear View of its future Financial Prospects, to show the precise Annual Deficit to be provided for, and to submit such Arrangements as may appear to them best calculated to secure a Surplus of Income to the Amount required by the Instructions of the Court of Directors. It will be proper that the Committee should on this Occasion be instructed to regard themselves, and to act rather as the confidential Advisers of Government than as a distinct Board. I would further beg leave to suggest, that a Copy of this Minute, and of the Statement annexed to it, be sent to the Governments of Madras and Bombay that they may be distinctly apprised of the Extent of the Difficulties which have to be overcome, and that they may clearly perceive the Necessity of the constant and strenuous Co-operation of all the Local Governments in the Prosecution of economical Reform, if we would fulfil the Injunctions of the Home Authorities, or avoid the most ruinous Embarrassment.

(Signed) W. C. Bentinck.

30th October 1829.

I concur. (Signed) Combermere.

I concur. (Signed) W. B. Bayley.

I concur. (Signed) C. T. Metcalfe.

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(Errors excepted.)

(Signed) C. Morley, A.G.

Accountant General's Office, 26th Oct. 1829.

(A true Copy)

(Signed) E. Molony,

Dep^y Sec^yto Government.