110 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
the public finances of the country. Not to speak of its efficiency as an instrument of economy, the budget system under the strain due to excessive centralization proved useless even as an instrument of order. The finances fell into a chaos. Notwithstanding the elaborate circulars and orders issued with regard to the accuracy in the framing of the budget estimates, it was an extraordinary phenomenon which confronted the Finance Ministers when the budgets, which were begun with large estimated surpluses, strangely enough closed with large actual deficits. To what extent the actuals erred from the estimates may be seen from the following table :
| DERANGEMENT OF G | GOVERNMENT FIN | NANCES 1 |
|---|---|---|
| Year | Estimate Deficit— Surplus | Actual Deficit— Surplus |
| 1866-67 ... ... ... 1867-68 ... ... ... 1868-69 ... ... ... 1869-70 ... ... ... | £ —66,700 1,628,522 1,893,508 48,263 | £ —2,307,700 — 923,720 — 2,542,861 — 1,650,000(est.) |
From the above table it is clear that the estimates for
1868-9 and for 1869-70, which were based on the revised estimates of 1868-69, were expected to end with an estimated surplus of £1,893,508 and £48,263 respectively. But when the actuals of the year 1868-69 showed that instead of a surplus there was to be a large deficit, Lord Mayo, who was in the meantime appointed to the Viceroyalty of India, became convinced that if his budget was recast on the basis of these results, it would close with an actual deficit instead of the estimated surplus. This financial surprise threw his budget into confusion, and to restore order he was obliged to adopt the
1 Hunter, W.W., Life of Mayo, Vol. II, pp. 7-8.
The figures for actual deficits given in the Table differ from those given by Mr. Chapman, Offg. Secretary to the Government of India, F.D., in his Circular letter of 17-8-1870 to the Government of Bombay communicating to the latter Lord Mayo’s scheme. According to Mr. Chapman the figures for deficit (actual) are as follows:—
In 1866-67 the actual deficit was ... ... £2,517,491 ” 1967-68 ” ” ... ... £1,007,695 ” 1968-69 ” ” ... ... £2,774,031 — cf. Papers, etc., on the extension of Financial Powers of the Local Governments, p. 243, for the Circular letter referred to.