Page:Indian Journal of Economics Volume 2.djvu/257

 PBINCIPLE$ OF FINNOE 245 the commercial the adminisa-ation individuals for The social which which a services--that is, render purchases of absolute and (2) The is used those branches o! special services to measured elxarge is xnade. second class--the general public--expend the income in four great groups o! payments: (1) conventional necessaries; taxes, revenues, and rents, a part of which to maintain the whole body of Government servants; (3) Investments hx capital goods of all kinds for productive purposes; (4) Purchases of superfiuities and luxuries. For brevity, group (1) will be denoted necezsaHes, implying those which are both absolute and conventional; group (2) will be denoted taxes, he word including land revenue, rents, fees and royalties; group denoted ' - nvestments, whether the invet- (8) will be ment be in a company, or any stock exehauge to no. cessaries business, loan or 11 be denoted public expenditure of and capital goods for productive purposes, and that uo part o[ it is devoted to purchasing those commodities whi,:h are nperfluiies for the great mass of the population. On the other hand part of the private expenditure of Government ofilces oat of fixelf salaries is devoted to snperfiuities, and forms a part of the whole social expenditure on superfiniS. ice. The taxable capacity of the people consists, there- fore, of the part of the social income o[ the public which actually pays the taxes, together with thai part which is spent on superfiuities. The part of 'the income of Goverfment servants which is spent on snperfiuities sh6Md be added so as .o ascertain t. he axable capacity o! %he etie population, The taxes paid hv Gox'erumat seYvala%s might also be added,, except tat, when og security, or in any fonn of private deposit; and grotxp (4) implying also luxuries. It may be assumed that the Government is entirely devoted