Parliamentary debates

Budget, or state of the finances of British establishments in India.

There is no resource, one might say artifice, that the British Government does not employ to paint the situation of its finances in the most favorable colors, but the necessity of exposing them in broad daylight, and thereby to the more or less well-founded observations of those who have no reason to flatter the Ministry, is a fortunate circumstance which gives the facility to appreciate the truth and to free it from a brilliant coloring which serves only to dazzle and deceive.

If the British Budget is nothing less than satisfactory for the Nation, that which Mr. Dundas opened on April 24th on the finances of India, is even more alarming.

Who would have thought that, independently of State revenues, there would be a Nation in Europe, a few individuals of which combined would have an income surpassing that of most of the first Powers of the Universe? Who, above all, would ever have thought that, with a revenue of seven million 154,202 pounds sterling, making about 170 million tournois, a Society of Merchants could not provide for the expenditure required by the establishments it possessed, and that it would be reduced to the necessity of contracting debts? Mr. Dundas claims that there is, however, a surplus instead of a deficit.

Mr.Dundas claims that there is, however, a surplus, instead of a deficit.

The House having formed a general committee on Indian affairs, Mr.Dundas entered into the subject he had announced. At last," he said, "the cloud which had obscured the British horizon is beginning to dissipate (...). The first object to which the House must turn its attention, are the revenues of Bengal. From May 1, 1787, to April 30, 1788, they amounted, according to the statements on the table, to 50,648,906 rupees, representing in British currency 3,449,520 pounds sterling. The Company's (East India Company) business in Bengal was thus flourishing. However, this income was not absolutely free, and the upkeep of the Civil, Military and Naval services, the construction and fortification of buildings, and the collection of taxes all required expenditure, but these expenses only amounted to 30,662,401 rupees, giving a net income of 2,248,682 pounds sterling (...).

It might be objected that the Presidency of Bengal cost £300,000 a year. But it was important not to lose sight of the fact that this was also a very extensive Government, and that if the expenses incurred there were further increased by the two new Regiments to be stationed there, it was because the safety of British establishments in India depended very much on that of Bengal. Care had to be taken to keep the Marates and Myforians at bay, who would otherwise easily give in to the temptation to invade Carnatic and endanger both the Madras and Bengal possessions.