Subject NOT available

click here for IIIF manifest

REGISTERED No. L. 3131.

TheGazetteofIndia

EXTRAORDINARY.

PUBLISHED BY AUTHORITY.

NEW DELHI, FRIDAY, MARCH 26, 1937.

GOVERNMENT OF INDIA.

FINANCE DEPARTMENT.

RESOLUTION.

New Delhi, the 26th March 1937.

No. D./1214-Ref.—The Government of India (Distribution of Revenues) Order, 1936, effects only such recommendations of Sir Otto Niemeyer as require to be prescribed by Order in Council. That part of his recommendations which in- volves the cancellation of debt remains to be effected. Further, in accepting the recommendations of Sir Otto Niemayer, the Secretary of State, in paragraph 10 of his telegram No. 1589, dated the 20th of May 1936, to the Government of India, accepted, as an integral part of the whole plan of the initial financial arrangements between the provinces and the Government of India, the scheme for the decentralisation of balances and the cancellation and consolidation of debt referred to in paragraphs 19 to 21 and set out in Appendix III of the report of Sir Otto Niemeyer.

2. For the purpose of effecting these adjustments, the Governor General in Council, with the sanction of the Secre- tary of State in Council, has made new Devolution Rule 35-A, which reads as follows : —

" (1) Notwithstanding anything con-

tained in these Rules—

(a) With effect from a date to be prescribed by the Governor General in Council, Local Governments shall as- sume, and the Governor General in Council shall be relieved of, all rights and liabilities in respect of such balances held in the debt, deposit and remit- tance group of Government accounts as the Governor General in Council may prescribe.

(b) The Governor General in Council shall be liable to pay to each of the Local Governments a sum equal to the net liability which they respectively assume under the provisions of the preceding sub-paragraph. So much of this sum as the Governor General in Council may determine shall be credited

( 119 )

[Price 1 anna. ]

to the Local Government in the public account of which the Governor General in Council is custodian and the balance of the sum shall be deemed to have been paid if the Governor General in Council relieves the Local Government of all liability in respect of an equivalent nominal amount of such outstanding loans and advances previously made or deemed to have been made to t h at Local Government by tho Governor General in Council as he m ay specify.

(c) It shall be lawful (whether for the purposes of the preceding sub-paragraph or otherwise) for the Governor General in Council to reliove any Local Govern- ment of its liability in respect of any loans and advances previously made or deemed to have been made by him to t h at Government, and to vary the terms as to interest and repayment of any such loan or advance.

(2) The functions of the Governor General in Council under this Ride shall not be exercised except with the previous sanction of the Secretary of State in Council."

3. In exercise of the powers con- ferred by clause (a) of rule 35-A (1) of the Devolution Rules, the Governor General in Council, with the previous sanction of the Secretary of State in Council, accordingly directs t h at as from the closing of accounts on the 31st March 1937 all rights and liabilities which on t h at date were associated with the balances (of an intrinsically local nature or definitely associated with any function which after t h at d a te will be a function of provincial govern- ments) of tho accounts set out in Schedule I of this Resolution shall bo assumed by the provincial governments concern- ed and the Government of India shall as from t h at date be relieved thereof.

4. In exercise of the powers con- ferred, and in partial liquidation of the liability imposed on him, by clause (b) of rule 35-^ (1) of t he Devolution Rules the Governor General in Council, with the previous sanction of the Secre- t a ry of State in Council, directs t h at with effect from the closing of accounts on the 31st March 1937 t he following sums, or such lesser sums as m ay before the 15th February 1937 be i n t i m a t ed to the Government of India by any

credited to the pro- province shall be vinces, viz.:—

Madras

Rupees sixty-six lakbs_

Bombay

Rupees forty-Roven

lakhs.

Rupees nine lakhs.

Bind -

Bongal

Rupees forty-nine lakhs.

United Provinces Rupees fifty-five lakha.

Punjab

Rupees forty-three lakhs.

Rupoos twenty- one lakhs.

Bihar

Orissa.

Rupees nine lakhs£

Central Provinces RupeoH twenty-five

lakhs.

Assam

Rupees oighteen lakhs.

Rupees nine, lakhs.

North-West Fron- tier Provinoe.

5. In exercise of the powers con- ferred by clause (c), and partly in further and final liquidation of the liability under clause (6), of rule 35-A (1) of tho Devolution Rules the Governor General in Council, with the previous sanction of the Secretary of State in Council, relieves, as from the closing of accounts on the 31st March 1937, the provincial governments of Bengal, Bihar, Orissa, Assam and the North-West Frontier Provinco of all liabilities in respeet of all sums due to the Govern- ment of India on 31st March 1937, through the Provincial Loans Fund, on account of loans and advances taken previous to the 1st April 1930.

6. In further exorcise of the powors conferred by clause (c) of rule 35-A (1) of the Devolution Rules, the Governor General in Council, with the previous sanction of the Secrotary of State in Council, in consideration for the cancel- lation of an interest bearing obligation of one crore carrying interest at a rate of 3i per cent, per annum of the Govern- ment of India to the Punjab Government, directs that the Punjab Government shall, as from the closing of accounts on the 31st March 1937, be relieved of all liability to the Government of India in respect of one crore of the debt whioh the Punjab Government assumed under De- volution Rule 24 (1).

7. In further exercise of the powers conferred by clause (c) of rule 35-A (1) of the Devolution Rules, the Governor General in Council, with tho previous sanction of the Secretary of State in Council, directs that the Central Provin- ces Government shall as from the closing

of accounts on the 31st March 1937 he relieved of all liability to the Government of India for the following sums due on the 31st March 1937 to the Government of India, through the Provincial Loans Fund, on account of loans and advances taken previous to the 1st April 1936, viz.—

(a) the balance of all sums borrowed for the specific purpose of meet- ing general deficits in the annual accounts of that province, and

(b) such part of the debt assumed by that Government under Devo- lution Hide 24 (1) as, together with the net sum referred to in regard to that government in paragraph 8 of this resolution, will amount to the total debt assumed by that government under Devolution Rule 24 (1).

8. In exercise of the powers conferred by clause (c) and in further and final liquidation of the liability under clause (6) of rule 35-A (1) of the Devolution Rules, the Governor General in Council, with the previous sanction of the Secre- tary of State in Council, directs that as from the closing of accounts on the 31st March 1937 the total liabilities (other than the liabilities of the Government of Sind on account of the Lloyd Barrage) to the Government of India due through the Provincial Loans Fund on tho 31st March 1937 on account of loans and advances taken previous to 1st April 1930 of the Governments of Madras, Bombay, Sind and the United Provinces shall be re- duced by, and in the cases of the Govern- ments of the Punjab and the Central Provinces further reduced by, the amounts of the net liabilities assumed by those Governments under paragraph 3, less the sums to be credited to those provinces under paragraph 4 of this Resolution.

9. In further exercise of the powers conferred by clause (c) of rule 35-A (1) of tho Devolution Rules, the Governor General in Council, with the previous sanction of the Secretary of State in Council, directs that a sum of ten crores of rupeos out of the total remaining debt for which, in accordance with the fore- going part of this Resolution, the Punjab Government will as at the closing of accounts on 31st March 1937 be liable to the Government of India, shall carry interest at 3£ per cent, per annum, and shall be repayable only in the terms of paragraph 15 of this Resolution.

10. In further exercise of the powers conforred by clause (c) of rule 35-A (1) of the Devolution Rules, tho Governor General in Council, with the previous sanction of the Secretary of State in Council, directs that all loans and ad- vances due by the Government of Sind to the Government of India through the Provincial Loans Fund on account of the Lloyd Barrage and outstanding at the olose of accounts on the 31st March 1937, shall up to the 31st March 1942 bear interest at the rates in force on the 31st March 1937 and thereafter at 4£ per cent, per annum. This debt shall be repayable from the 1st April 1942 on the torms in force on the 31st March 1937. No option for accelerated repayments autho- rised in this Resolution shall have appli- cation to this debt and in all other respects this debt shall be ignored for the purposes of this Resolution.

11. In further exorcise of tho powers conferred by clause (o) of rule 35-A (1) of tho Devolution Rules, the Governor General in Council, with the previous sanction of the Secretary of State in Council, excopts entirely from the operation of tho other paragraphs of this Resolution the outstanding balances on the 31st March 1937 of certain liabilities of the Bombay Government (set out in Schedule II to this Resolution) representing sums corresponding to cer- tain comparatively short term debts of the Bombay Municipal Corporation to the Bombay Government. The terms of repayment of these liabilities of the Bombay Government to the Government of India shall be fixed at, and continue to be, those in operation on the 31st March 1937 and no option for accelerated repayment authorised in this Resolution shall have application to these liabilities.

12. In further exercise of the powers conferred by clause (c) of rule 35-A (1) of the Devolution Rules, the Governor General in Council, with the previous sanction of the Secretary of State in Council, directs that the rate of interest on all debt (except that referred to in paragraphs 9, 10 and 11 of this Resolu- tion) which, in'the terms of this Resolu- tion, will filially remain as the debt of certain provincial governments to the Government of India as from the closing of accounts on the 31st March 1937 shall be computed in the case of each provin- cial government as follows :—

(a) a full year's interest at the rele- vant individual rates in force on

the 31st March 1937 calculated on the gross total of the debt incurred prior to 1st April 1936 and outstanding on 3lst March 1937 previous to any adjust- ments consequent on the torms of this Resolution shall first bo evaluated;

(fe) from this sum shall be de-

ducted—

(i) in the case of the Punjab Government a sum of rupees thirty-eight lakhs fifty thou- sands, representing interest at 3^ per cent, per annum on the sums referred to in para- graphs 6 and 9 of this Reso- lution ;

(ii) in the case of the Central Pro- vinces Government a full year's interest at the relevant individual rates in force on the 31st March ]937 calculated on the sums referred to in para- graph 7 (a) of this Resolution, and also a full year's interest on the total debt assumed by that Government under Devolution Rule 24 (1) ; (iii) in the case of the Bombay Government a full year's in- terest at the relevant indivi- dual rates in force on the 31st March .1937 calculated on the balances of the sums referred to in paragraph 11 of this Resolution;

(c) and there shall further be deduct- ed in the case of all provincial governments concerned, ex- cept the Central Provinces, an amount calculated by applying the average rate of interest pay- able by a province on the total debt assumed by it under Devo- lution Rule 24 (1) to the net capital sum deducted from the total liabilities of the provinces concerned under paragraph 8 of this Resolution;

(d) the net amount of interest arrived at in this manner shall in the case of each of the pro- vinces concerned be expressed as a percentage rate of interest on the total net liability of each province to the Govern- ment of India which will remain after taking into account the adjustments consequent on the terms of this Resolution, but excluding the sums referred to in paragraphs 9, 10 and 11 of this Resolution ;

(e) the rate of interest arrived at in this manner shall be rounded down to the next lower quarter per cent, rate of interest which rato (savo in the cases of the sums referred to in paragraphs 9, 10 and 11 of this Resolution) shall then represent the rate of interest payable by each pro- vincial government on the total of its debt liability to the Government of India as from the closing of the accounts on 31st March 1937 after the adjustments prescribed in this Resolution have been effected.

13. In further exercise of the powers conferred by clause (c) of rule 35-A (1) of the Devolution Rules, the Gov- ernor General in Council, with the previous sanction of the Secretary of State- in Council, directs that (save in the case of the sums referred to in para- graphs 9, 10 and 11 of this Resolution) the total net debt of each province as from the closing of accounts on 31st March 1937 as arrived at in the terms of this Resolution, shall be repayable to the Government of India in the form of semi- annual equated payments of interest (at the rate determined in accordance with paragraph 12 of this Resolution) and principal over 45 years to be com- pleted by the 31st March 1982, and pay- able on the following dates of each year : —-

Madras.- -15th September and 15th

March.

Bombay.—31st July and 31st Janu-

ary.

United Provinces.—7th August and

7th February.

Punjab.—1st August and 1st Feb-

ruary.

Central Provinces.—30th September

and 31st March.

Sind.—1st July and 1st January.

14. In further exercise of tho powers conferred by clause (c) of Rule 35-A (1) of the Devolution Rules, the Governor General in Council, with tho previous sanc- tion of tho Secretary of State in Council, with reference to the maturing of the 5 per cent. 1945-55 public loan, autho- rises any province to give notice on

Government of India Act, 1935) tho whole or any part of the sum referred to in paragraph 9 of this Resolution on any dato after 1st April 1937.

16. For tho purpose of this resolution any amount or adjustment specified as " from the close of accounts on 31st March 1937 " shall be doomed to be operative and to have effect at midnight on the 31st March 1937 notwithstanding that tho actual figure may uot become known in tho ordinary course of the com- pilation of accounts until a later date.

17. Unless otherwise specifically stated nothing in this Resolution affects any debt contracted by a province with the Government of India between the 1st April 1936 and the 31st March 1937.

18. On the 1st April 1937 the Gover- nor General in Council will place to the credit of provinces in account with the Reserve Bank of India tho net balance (before tho adjustments necessitated by this Resolution havo been effected), as at tho closing of accounts on the 31st March 1937, of all accounts sot out in Schedule I II of this Resolution j provided that, if the amount shown as the free balance in tho case of any or all of the Govornmentfl of Bengal, Bihar, Orissa, Assam and the North-West .Frontier Province is a negative sum, such balance, with tho approval of tho Secretary of State in Council, is to bo a,ssumod to bo zero for the purpose of this paragraph.

or before the 1st April 1945 of ita intention to redeem, on a date not earlier than the 1st April 1945 and not later than the 15th October 1940 to bo hxed by the Governor General hi Council, and subject to any restrictions which may be imposed under section 163(3) of the Government of India Act, 1935, any part not exceeding one-half of the principal of such of its debt (other than debt of the Government of Sind on account of tbe Lloyd Barrage) outstand- ing on the 31st March 1945 to the Govern- ment of India as is covered by this Reso- lution. The Governor General in Council in like manner and with the like sanction, with reference to the maturing of the 4 per cent. 1900-70 publics loan, further authorises any province to redeem at its option on a date not earlier thau tho 1st April 1960 and not later than the 15th Sejitember 1961 to be fixed by the Governor General in Council, and other- wiso subject to similar conditions, tho whole or any part of tho re ma i ruler of tho principal of such debt on giving notice to that effect on or before tho 1st April 1960. Any unredeemed balance remain- ing after the exercise of either of these options shall be repayable at the original rate of interest determined in accordance with paragraph 12 of this Resolution over the balance of the 45 years referred to in paragraph 13 of this Resolution, and in the semi-annual form and on the dates specified in that paragraph, a fresh computation of the instalment being made for this purpose.

19. On the 1st April 1937 the Governor General in Council will pay to the pro- vinces either in tho form of cash in their treasuries or in the form ot a credit to their accounts with tho Reservo Bank of India, as may be agreod upon, the sums specified in paragraph 4. of this Resolution.

15. In further exercise of the powers conferred by clause (c) of rule 35-A(l) of the Devolution Rules, the Governor Gen- eral in Council, with the previous sanction of the Secretary of State in Council, announces that with tho concurrence of the Government of India the Punjab Government will be at liberty to repay (subject to any restrictions which may be imposed under section 163 (3) of the

ORDERED that the Resolution be pub- lished in the Gazette of India Extra- ordinary.

SCHEDULE I.

(Vide para. 3 of thu ltf-uolution.)

0.—Unfunded Debt.

Special Loans—

8 per cent. Perpetual Loans (Madras).

(1) a bond dated 1st May 1790 for Rs. 10,500. (2) a bond dated 21st December 1802 for

Rs. 70,000.

(3) a bond dated 18th September 1804 for

Rs. 17,500.

(4) a bond dated 9th May 1807 for Rs. 35,000.

6 per cent. Perpetual Loans (Madras).

(1) a bond dated 7th March 1795 for

Rs. 7,000.

(2) a bond dated April 1817 for RH. 3,500.

Endowments for Charitable and Educational

Institutions :-—

Endowment by Raja Kalishankar Ghoshal

for Benares Blind Asylum.

Kollah Singanna Chetty's Choultry Endow-

mont (Madras).

Deposits of the Monogar Choultry Endow-

ment (Madras).

Endowments for other Miscellaneous and

Charitable purposes (Bombay).

Endowments by the Late King of Oudh

Charity Fund.

Treasury Notes—

Treasury Notes on aocount of the Bhonsla

and othe-r Nagpur Temples.

Savings Bank Deposits—Bank Account— General Provident Fund. Indian Civil Sorvice Provident Funds. Contributory Provident Fund (Provincial). Other Miscellaneous Provident Funds.

P.—Deposits and Advances.

PART IT.—Deposits and Advances not bearing Interest.

Deposits of Looal Funds— District Funds

Municipal Funds. Other Funds:—

Town and Bazar Funds (exoluding Imphal

Town Fund).

Port and Marine Funds (excluding Major Port Funds and Hospital Port Dues Funds.

Education Funds. Medical and Charitable Funds (excluding Ranchi European Mental Hospital Fund).

Publio Works Funds, Village Panohayat Fund. Other Miscellaneous Funds, e.g., Cotton

Market Funds (0. P.).

P.—Deposits and Advances—contd.

PART II.—Deposits and Advances not bearing Interest—oontd.

Departmental and Judicial Deposits.—

Civil Deposits—

Revenue Deposits (excluding Customs, Opium,

etc., Central Deposits).

Civil Courts' Deposits. Criminal Courts' Deposits. Porsonal Deposits. Forest Deposits. Public Works Deposits. Trust Interest Funds. Jute Cess Fund. Central Cotton Committee Research Fund. Deposits) on account of Police Funds (including

Polioe Remount Funds, C. P.)

Unclaimed Provident Fund Deposits (of various

classes).

Deposits of Work done for Public Bodies or

Individuals.

General Police Fund. Municipal Taxes on Government Residential

Buildings.

Deposits of Fees reoeived by Government ser-

vants for work done for Private Bodies. Official Receiver's Remuneration Fund (C. P.) Deposits for Weights and Measures under the

Bombay Weights and Measures Aot, 1932. Other Miscellaneous Funds and Deposits :—

For example:—

Deposits on account of cost price of Liquor. Excise Deposits. Deposits on account of Survey and Settle- ment expenses of Wards and Private Estates.

Distriot Chowkidari Reward Fund. Lloyd Barrage Scheme Deposits. Special Deposits.

Advances—

Advances Repayable—

Civil Advanoos. Advances for Rest Camps. Special Advances. Forest Advances, Revenue Advances.

Permanent Advances, Civil.

Pennanont Advances—

Aocounts with Foreign Governments Aocounts with Foreign Governments,

and Indian States—

Suspense—

Suspense Accounts—

Suspense Aooount. English Stores Suspense Aocount. Departmental Adjusting Aocount.

Departmental and similar Accounts— Civil Departmental Balancos (inoluding Publio Works, Forest, Lloyd Barrage, etc, Cash Balances).

Q.—Loans and Advances by the Central Government.

Loans to Presidency Corporations including Port Loans to Indian States, Local Funds, etc,—•

Trusts :—

Madras Corporation Loans (Madras). Vehar Water Works Loan (Bombay). Loans to Landholders and other Notabilities :•—

Loans to Nawab of Dacca.

Loans to Government Servants :—

House Building Advances. Advances for the purchase of Motor Cars. Advances for the purchase of other Con-

veyances.

Passage Advances. Other Advances.

NOTE:.—-In tho oaso of Frovidrnt Funds and Advano™ tu (jHjveriimeiit Sorvanta the right or liability ^hall a™ruo to tho Province on whose oadri> an officrr has a permanent li'ii, or in the rate of so called joint oadrot), to tlio oHtenbiblo parent province of the cadiv.

SCHEDULE II.

(Vide para. ]] of the Resolution.)

Original amount of loan.

Yoar in which the loan waw obtained from the Government of India and To-]cnt to tho loctil body.

Ra.

£5,00,000'

1021-22

1,65,00,000

1922-23

1,98,20,000

1023-24

1,41,74,000

1923-24

1,28,00,000

1024-25

22,00,000

1924-20

•Loans direct to the

Bombay Munici-

pal Corporation.

90,00,000

1025-20

7u,00,000

1026-27

40,00,000

1927-28

82,67,000 _

1935-36

45,(10,000 "

1921-22

1,72,00,000

1922-23

89,00,000

Loans originally to

V the City nf Bombay

1923-24

1,00,00,000

Improvement

Trust.

1924-25

70,00,000

1Q2G-26 . . ..

SCHEDULE III.

(Vide para. 18 of the Resolution.)

1, Government, Account—

Balance,

Provincial Loans.

2. N. Public Debt-Permanent Debt—

P. Deposits and Advances-

Famine Relief Fund.

3. Part I—Deposits and Advances bearing

Interest.

4, Depreciation Reserve Fund-—Government Part IE—"Deposits nnd Advances not

Presses.

bearing Interest.

5. Deposits of Depreciation and other Reserves of Government Cwnirierf'ia] Concerns.

(i. TumftiN fum Ftniin Relief Fund. 7. Sinking Fund Deposits for Loans granted to Local Bodies, etc.—Amount paid by Ibo Lord Bishop of Nagpur for repayment of Loan.

8. Subventions from the Central Road De-

velopment Account.

9. Deposit Account of the Grant made by

the Indian Central Cotton Committee.

10. Deposit Account of the Grant made by the Imperial Council of Agricultural Resoaroh.

Deposit Aooount of the Receipts under the Bombay Public Conveyance Act. 12. Deposit Account of the Grant made by the Central Government for Devolop^ jnent of Industries (including Sericul- tural and Handloom, etc. Industries).

13. Deposit Account of the Grant made by the Central Government from Sugar Excise Fund.

14. Deposit Account of Grants for Econoznio Development and improvement of Rural Areas (including co-operative training and education).

15. Deposit Aooount of the, balanoe of the Fund for the restoration of the Earth- quake damage. 16. Suspense Accounts. 17. Provincial Road Funds.

IS. R. Loans and Advances by Provincial

Governments,

19. S. Advances from the Provincial Loans

Fund and Government of India.

Advances from the Provinoial Loans Fund.

Total net balance :•—

Namely—

1. Earmarked balances, viz., items 3-17 .

2. Free balances, viz., items 1, 2, 18 and 19

J. C. NIXON,

Secretary to the Government of India.

PuBUBHKD BY THU MANAUEIt OF PUBLICATIONS, 1WLH1

P B I N T BD BY THE MANAGER, GoVXENMENT OF INDIA P H K 8 8, NttW DfiLHt.