HC Deb 20 June 1938 vol 337 cc673-4
2. Mr. Sorensen

asked the Under-Secretary of State for India the total amount of revenue secured by the Government of India in 1937, and the proportion of this devoted to military purposes; and whether he is aware of continuous protests in India both against an excessive proportion of Indian revenue being devoted to military purposes and against the extent to which Central Government power and revenue limits severely the financial resources of Provincial Legislatures?

Lieut.-Colonel Muirhead

The gross revenue of the Central Government, as exhibited in the Revised Estimates for 1937–38, was Rs.122.6 crores (£91.9 millions). The gross expenditure under the head "Defence Services" included in those Estimates represents 42.8 per cent. of this amount and 25.1 per cent. of the aggregate revenues of the Central and Provincial Governments. I am aware that the question whether an excessive proportion of Indian revenues is expended upon defence is not infrequently raised. As regards the last part of the question, the allocation of responsibilities and resources between the Central and Provincial Governments received the most careful consideration in connection with the Government of India Act, 1935. Apart, moreover, from the separation of Burma, which has occasioned a net annual loss of about Rs.2½ crores (£1.9 millions), the Central Government has in recent years relinquished to the Provinces an amount of annual revenue approaching Rs.9 crores (£6,500,000).

Mr. Sorensen

Does not the hon. and gallant Member himself agree that the percentage he gave represents a very high percentage indeed, and can he say whether any steps are to be taken to reduce that percentage?

Lieut.-Colonel Muirhead

It is, of course, a substantial percentage, but it is approximately in accordance with what has been the case for a number of years. It is certainly true to say that the question of keeping the military expenditure of India within the limits of the necessities of India is a subject which is always under close consideration.

Mr. Sorensen

Does the hon. and gallant Member know that there are considerable protests from representative Indians against this expenditure?