Page:Indian Journal of Economics Volume 2.djvu/67

 ART 01 ECONOMIC DEVELOPMEN 5 works. Any revenue received by Government from such work on account of payments made ro zeta for its services is called dizct venu, as for example the receipts of railways for goods carried or of irrigation canals for water supplied. Revenue arising under class (1) above, by increase of the total yield of rent, taxes and fees on account of the establishment of a railway, canal or other work in the district, may be called indirect evenue as regards that railw. ay or canal. direct revenue, when regarded from the stand- The point of a particular gross reven.e (or gross work is usually called the receipts) of that udertaMng. ARor deducting working expenses we have the net revenue, which represents interest on capital, and profits, if any. The balance remaining aRer deducting interest from net revenue is called net Frofits. The present practice of the Government .of India is to strike an average each year of the rates of iuterest on all outstanding public debt, sad to deduct' this uniform rate from all works, Imperial and Provincial. Consequently the rate of interes charged varies slightly from year to year. In practice no difficulty has arisen; but in the strict theory of finance this is unsound, as will be explained laer.  18. Relations of Various Incomes.--- The more definition of the various incomes which ought to be taken into account for scientifically practising the art of economic development is not sufficient. It is essential o have a clear idea of the relations of all these different incomes to one another. A-full discussion of this subject ould be quite outside the range of the present study and my observations will be confined to the minimum that. is necessary to convey an under- standing of the economies of public works. It should be sated that the olassifioation and nomenclature of