§ 16. Mr. T. WILLIAMSasked the Secretary of State for India whether the Government of India have provided or have under consideration the question of providing a sinking fund in connection with the public debt of British India for the purpose of affording support to the Indian securities market?
§ Sir S. HOAREThe Government of India make each year a large appropriation from revenue for the reduction or avoidance of debt. The amount is calculated with reference to the total amount of debt outstanding, and in the current year the budget provision is Rupees 682 lakhs (about £5,000,000). This provision is inclusive of the obligatory sinking fund charges in respect of certain obligations, and the balance may be applied either towards the avoidance of new borrowing or to the redemption of existing debt.