The balance at the credit of the Provincial Government at the end of the year 1871-72, excluding trust funds, &c., not at the disposal of the Government, was stated in last report to be Rs. 39,73,056, but after some further adjustments by the account department this amount was reduced to Rs. 38,66,952. This sum was made up as follows: Balances of what were formerly called local funds (principally ... ... Rs. ... 15,96,774 ... 5,32,900 13,96,332 ... 3,40,946 1872-73. Subsequent to the last report the Government of India ordered the Provincial receipts and disbursements, provincial accounts to be recast in a different form. The balance of the funds which were at the disposal of the local Government before the new system of provincial finance, with the receipts and expenditure of the same, are now kept apart under the head of provincial reserve, and are thus distinguished from the accounts of the assignments, receipts, and disbursements under the scheme of December 1870, which are now designated as provincial proper. Stated in this manner the accounts for 1872-73 stand as follows: Account of Bengal Provincial Receipts and Disbursements for the financial year 1872-73. The following statement shows the receipts and disbursements and balance of the provincial reserve fund: Provincial reserve fund. The Provincial balance at the end of the year comprised certain further grants for special buildings, being the value of the building lately occupied by the High Court and now transferred to the Military Department, and the capitalised value of the rents paid for various public offices in Calcutta. Both these sums, amounting in the aggregate to Rs. 8,66,000, are designed for the erection of new amalgamated public offices, and are held in deposit for that purpose. Deducting this sum from the balance (apparently increased by something over 7 lakhs), we find that the expenditure of 1872-73 has exceeded the receipts by about one lakh of rupees, or Rs. 1,09,190. It appears, however, that as the accounts are now stated, there has been a saving in provincial proper of Rs. 5,22,563, and a deficit in provincial reserve of Rs. 6,31,657; that is, in fact, less than the income assigned by the Government of India has been spent in general provincial charges, and more has been assigned for local purposes than the local income. The balance at the disposal of the Government of Bengal on 1st April 1873 may be stated to consist of Balance in April 1873. the following: With regard to the economies of the first year of the new system of provincial income, the Lieutenant-Governor observed in a note, dated 6th May 1873: Need of a reserve fund. "As respects our saving at the beginning of the new system and the balance at our credit, I must distinctly claim that we are not the unprofitable servant who has hoarded, but the discreet servant who has doubled his talent. I consider that without material injury to the public service we have managed to establish in prosperous times a reserve fund such as is absolutely necessary to an efficient, free, and liberal administration. In my opinion the new system of provincial finance cannot be worked without such a reserve. If we had expended up to the utmost limit of our income; if we were living as it were from hand to mouth: how could we meet a rainy day? How could dear and unprosperous years be tided over?-how could we provide for any great work?-how could we undertake any of the thousand and one little improvements or occasional large improvements beyond the sanctioned routine which constantly present themselves? It never was a part of the scheme that the local Governments should have the power of borrowing, and I certainly think it should not be so; yet without either this power or a reserve I do not see how a Government with full establishment, and spending in ordinary times all its income, can possibly get over a bad year; and I am much convinced that one of the principal advantages of the system will be lost if the local Governments have so tightly fitted their regular and unavoidable expenditure that they cannot give money for occasional purposes. Budgets and fixed establishments are excellent things to enable us to keep within limits and see how we stand, but I feel sure that more good can often be done by the discretional expenditure of one rupee by an authority fit to be trusted with discretion, than by ten rupees spent by rule and budget. I should therefore always wish to have some margin for occasional and extraordinary expenditure." Not only was the object thus set forth effected in 1871-72, but, notwithstanding the very slight apparent falling back in 1872-73, there is in reality some accumulation in the latter year also; for whereas formerly the unspent balances of sums assigned to the districts for local roads, &c., were recredited at the end of the year, under the new road fund system the assignments are permanent and are not recredited. The road year runs from 1st October to 30th September, and grants are made for that year, so that considerable balances remain in hand on 1st April. Thus it has happened that while our provincial balances at the end of 1872-73 had practically decreased by one lakh, the local fund balances have increased by upwards of 7 lakhs, liberal assignments having been made to the local funds. With respect to the expenditure of 1872-73, it may be stated that all the civil services have been conContinued economy in 1872-73. ducted with economy and within our means, except medical, the charges for which have much increased from exceptional circumstances. The Police, which last year slightly exceeded the estimate, has this year shown a saving to a considerable amount. Education has also again shown a saving on the estimate. Jails, Registration, Printing, and Miscellaneous, have shown no excessive expenditure. The cost of the Medical Services have rapidly increased on account of the Burdwan fever and the excessive special establishments entertained, while there was a very heavy charge for quinine supplied by the Government of India. Altogether the medical charges exceeded those of the previous year by Rs. 2,35,929. The provincial public works expenditure, excluding assignments to districts and charges against provincial reserve, was Rs. 36,07,314. This amount as nearly as possible tallies with the sums available for that department (some receipts being added to the imperial assignment), so that during 1872-73 we have neither gained nor lost by the Department of Public Works to any considerable extent Estimates for 1873-74 framed on a more liberal scale. Seeing that the object of securing a working balance had been attained, and that considerable sums were available, which it was well that we should cause to fructify; seeing also that considerable savings are almost always effected in the estimates in these provinces, the Lieutenant-Governor thought that he might frame the estimates for the current year 1873-74 on a more liberal scale. Especially in the Public Large increase of expenditure estimated Works Department the Lieutenantfor in Department Public Works. Governor thought that some balances and savings due to that department might well be spent. The following resolution, dated the 18th March 1873, shows what has been done in that respect. It was drawn up before the new system of separating provincial proper from provincial reserve was intro duced, and includes the receipts and expenditure of the reserve, and the assignments from the general to the local funds : finance. "RESOLUTION.-The Lieutenant-Governor having now seen most Resolution regarding Public Works parts of these provinces, and having very fully considered their necessities in regard to public works, has thought it well to review the whole situation in this respect before settling the public works budget for the year 1873-74. "The portion of the annual imperial assignment to these provinces calculated with reference to the public works expenditure of 1870-71, and therefore fairly attributable to that department, is about 33 lakhs of rupees, say £335,000. "The income from tolls on canals and water-ways, and on bridges, ferries, &c., levied on roads maintained from the provincial funds, is about 7 lakhs of rupees, and this income has been, and should be, devoted in some shape to public communications. From other sources, including rents, refunds, &c., there is some further public works income, making a total income in that department of about 8 lakhs. The total ordinary income composed of the assignment, plus receipts of the department, is thus about 42 lakhs, say £420,000. "In clearing up the accounts of the amalgamated district road fund and other funds similarly available, with a view to the new system of account, there was found to be a credit balance of about 16 lakhs, which may be regarded as a sum available for expenditure once for all. "The Government of India have agreed to give this Government the capitalised value of several rents paid for public offices, as well as the value of the building lately taken for a military hospital, the object being to supply the place of rented buildings by building Government offices. On account of these capitalised rents, including the Calcutta Small Cause Court and a Judge's Court at Midnapore, about 11 lakhs are now available. Finally, as has been explained in the Administration Report, not from the want of ample opportunities for spending, but because of the very greatness of the necessities of these great provinces, and the difficulty of meeting them from the comparatively small annual assignment, the Lieutenant-Governor thought it necessary in the first year of his administration to exercise extreme care and caution in this department, and not to launch out till he thoroughly understood the subject and had systematised and classified the works and the accounts. There resulted a considerable saving on the public works assignments for 1871-72, exceeding 7 lakhs of rupees. "These sums make about 34 lakhs of rupees, say £340,000, which may be called extraordinary funds available for public works. Taking ordinary and extraordinary together, about Rs. 76 lakhs, say £760,000, appear to be available. "From this we have only to deduct any amount by which the grants-in-aid to districts in the present year may be found to have caused a deficit. |