Page:Indian Journal of Economics Volume 2.djvu/616

 598 H. $TNLEF JEFON$ or pracfiezble. distribution. as by population, would really be equitable Gonsequently the Government of India must request details of lhe expend lhe lhe provincial schemes on borrowed money; governments hioh the and the to submit propose to Government India as a whole,. the estimates will with the fact there need Governmen of will be no real devolution of expeudiure troublesome India as s beyond correspondence present. In in regard to public works. To permit. provincial borrowing may be said, therefore, to be a political necessity as well as an economic advantage. It Montagu-Ol[elmsford schem to is proposed in make irrigation and roads provincial subjects. The provinces should there- " n " " !ore .have freedom borrow, subject o ly to restrictions n three respects:t(1)They should not be allowed to borrow in London or anywhere outside India: (2) The amount of the permanent debt of province outsnding at any time must not exceed a limit to'be fixed--say twice or three times the maximum ordinary revenue realised by the province in any previous year, excluding arrears; () provinces must not issue any loans by public advertisement during three months in each year, if this time is needed to be reserved for the issue of Government of think that auy limit should India loans. be placed of interest which provinces might offer, nor on the rate of any underwriting commission or brokerage which they might pay. In such matters the provinces should be left to decide for themselves whether the best terms they can arrange provide an advantageous business transaction or not. were to be allowed on these If proviueial borrowing conditions ithere would be a great stimulation of the political life of the pro- on I do not the rate of India must decide which are the more urgent, or deserving of early execution, looking at the needs of