·REPORT
OF THE
PUBLIC ACCOUNTS COMMITTEE
ON THE
ACCOUNTS OF 1936-37
Volume 1 - Report
Part 1.-Civil, Posts and Telegraphs and Defence
Services.
WED BY TBE MANAGER OP PUBLICATIONS, DELHI.
BY THE MANAGER, GOVEBNMENT OF INDIA PRESS, SIMLA
1938
Price , Rs, 1-3-0 or 2s 3d,

·List of Agents in India from whom Government of India Publications are available. . (a) PROVINCIAL GOVERNMENT BOOK DEPOTS. MADRAS : Superintendent, Government Press, Mount Road Jadras. BOMBAY :-Superintendent, Government Printing and Stationery, Queen's Road, Bombay. SEND :-Danagor, Sind Government Book Dopot and Record Office, Karachi (Sadar). UNITED PROVINOES :- Superintendent, Government Press, Allahabad. PONJAB :-Superintendent, Government Printing, Punjab, Lahore. CENTRAL PROVINCES :-Saperintendat, Government Printing, Control Provinccs, Nagpur. Assam :- Superintendent, Assam Seoretariat Presa, Shillong. Binar :- Superintendent, Governmint Printing, P. O. Gulzarbagh, Patna. NOBTR-WEST FRONTIER PROVINCE :-Manager, Government Printing and Stationers, Peshawar. OR155A -Press Otficer, Secretariat, Cuttack. (6) PRIVATE BOOKSELLERS. Advani Bros., P. O. Box 100, Cawnporc. Dalik & Sons, Sialkot City. Aero Stores Karachi* Anthur, B. S., Bookseller, Civil Lines, Jodhpur. Banthiya & Co., Ltd., Station Road, Ajmer. Messrs. U. P. Lallotm & Co., Poat Box No. 34, Lahori Bengal, Flying Club, Dum Dum Cantt.* Minerre Book Shop, Anarkali Strect, Lyhorc. Bhawnani & Sons, New Delhi. Modern Book Depot, Bazar Road, Sialkot Cantonme Bombay Book Depot, Charni Road, Girgaon, Bombay Modern Book Depot, Napier Rond, Jullundur Can Bhatia Book Dopot, Sadar Bazar, Ranikhet. and Circors, Blohini Road, Lahore, Book Company, Calcutta. Mobanlal Dossabhai Shab, Rajkot. Booklovers' Resort, Taikad, Trivandrum, South India. Mohindra Bros., Luzzhkar, Gwalior State, Messrs. Burna Book Club, Ltd., Rangoon. Nandkishoro & Bros., Chowk, Benares City. Butterworth & Co. (India), Ltd., Calcutta. New Book Co.," Kitab Dahal ", 192, Hornby Ro Chatterjeo & Co., 3, Baclaran Chatterjee Lane, Calcutta. Bombay, Chukervertty, Chattorjee & Co., Ltd., 16, College Square, Newman & Co., Ltr., Calcutta, Messrs. W. Calcutta. Oxford Book and Stationery Company, Delhi, Lahore City Book Club, 95, Playro Strcet, Rangoon. Siinla, Dcerut and Calcutta. Das Gupta & Co., 51/3, College Street, Calcutta. Parikh & Co., Baroda, Messrs. B. Dastane Brothors, Homo Servico, 166, Ravirvar Peth, Pioneer Book Supply Co., 20, Shib Narayan Das La Poona 2. Malatya, and 210, Cloth Market, Delhi. Delhi and U. P. Flying Club, Ltd.,_Delhi.* ook Depot, Grant Road, Bombay. English Book Depot, Feroze ligious Book Society, Lahore. English Book Depot, Taj E Prasad & Sons, Patna City. English Bookstall, Karachi. lına & Sons, Booksellers, Anarkali, Lahore English Book Store, Abbotta ua Bros., Opposito Bishrambag, Poons C: Falir Chand Marvah, Pesua n Lal, Katr, Allahabad. Fono Book Agency, Simla. Gautama Brothers & Co., Ltd 81021 bok Depot & Stationery Mart, Kashm lhi. Higginbotham, Mndras. 12, K. & L. Edvardes Road, Rawalpi Hindu Library, 137/F, Balara H. L. Collego of Commerce T-shawar, Diessrs. J. Ahmedabad, & Co., 72, Harrison Road, Calcul Hyderabad Book Depot, Chad Imperial Book Depot and Ltd., Nai Sarak, Delhi. (Machhliwalan), Delhi. Popot, 15, Lady Hardinge Road, I Indian Army Book Depot, Indian Book Shop, Benares . College Square, Calcutta, Dressrs. D1 Indian School Supply Depx HI, 6, Hastings Street, and 8/2, Has ta, Messrs. P. C. P. O. Dharamtala, Calcı Insurance Publicity Co., Ltd all, Karachi. International Book Service, u, Quetta. Jacques & Co., Kaunptce Rof Depot, Lahore, Dalhousie and Delhi. Jains & Bros., Mori Gate, yok Sociсty, 69, Harrison Road, Calcu New Delhi, Messrs. J. znak (Indiu), Messrs. B. S. Kamala Book Depot, 15, C ps & Co., Bombay, Messrs. D. B. Karnataka Publishing Hous Ltd., Bombay Keale & Co., 65, Britto Roq Co., Ltd., Calcutta and Simla. Keshao Book Stall, Khadi Booksellers, Princes Street, Kalb Kitabistan, 17-A, City Rol by, Messrs, N. M. Krishnaswami & Co., Tepe Agency, Kacheri Road, Lahorc. Fort, Messrs. S. Jblishing House, Ltd., Literature Pa Labiri & Co., Calcutta, lles Park, Lucknow. Local Self-Govt. Institute, 1 Co., Madras, Messrs. P. London Book Co. (India), A! A., Las Bookseller, Vellore. Nowshers, Rawalpindi: p., Allahabad, Calcutta and Bom Dlackwin & Co., Booksellers, Inverarity Road, Off Co., Egerton Road, Delhi. Sadar, * Agents for pablications on Aviation only. PUBLIC TS COMMI. 38.

·Compoe Report Propood Report Proceed RAJASTHAN UNIVERSITY LIBRARY DATE LAREL Call No. X7:8F.2.1 Dale of Release Accn. No.81021 for loan This book should be returned to the library on or before the date last stamped below APTEND APPENE APTENC APPENC APTEXE APPENE ATPENE APPLXC APPSC APPAN APPEN APRENE APPEN RUPUL (525)--10000—11-64 APPEN Frontier Watch and Ward in the LIYOP- Accounts 107-110 APTEXDLX XIV. Copies of correspondence regarding regularisation of irregular funds 111-112 | APPENDIX XV --Mercorandum regarding explanations of ranations given in the Appropriation Accounts 123 APPENDIX XVI.-Extract from a note of the A. GCR on the question of annexing a pro forna account to each of the area domanda 116--117 * Part II of the Report and Proceedinga deal with the Railway Accounts. MI0IFID.

·( i ) PAGES. 119 ORO 121 .. 123-124 125 127 129131 APPENDIX XVII.---Note on the revision of Army Regulations APPENDIX XVIII.-Note on the Scheme of interchange of Accountants of the P. W. D. and the M. E. S. APPENDIX XIX.--Note regarding overstocking of R. A. F. stores .. APPENDIX XX.-Memorandum explaining the Zoning 'system APPENDIX XXI.—Report on the rush of M. E. S. expenditure in March APPENDIX XXII.- Memorandum on the disposal of surplus and obsolete stores APPENDIX XXIII.—Note on the methods of charging the War Office with the pay of officers serving with a lent unit APPENDIX XXIV.—Note regarding the mechanisation of Ordnance Factory Accounts APPENDIX XXV.-Financial review on Quetta Reconstruction for 1936-37 APPENDIX XXVI.-Annual certificate of the Quartermaster General in India APPENDIX XXVII.-Annual certificate of the Master-General of the Ord. dance in India 133 135-136 137–141 143--144 145 ·(ü) COMPOSITION OF THE COMIITTEE ON PUBLIC ACCOUNTS, 1938. + Chairman. 1. The Hon'ble Sir JAMES Grigo, K B., KCS.I. Elected Verlers. 2. Mr. Chat ILX Sual 3. Jr. B DAS 4. Sirdar JOGENDRA SING 5. Prof. X. GRANGA 6. Mr S, SATYAYURTI 7. Bhai PARMA WAND 8. Captain Sardar Sir SHER MORAMMAD KILAN, CIE, MB.E 9. Mr. J. RAMSAY SCOTT Yominated Jembers. 10. Dr. R. D. DALAL, CIE. 11. Khan Bahadur Shaikh FazL-1-1IAG PIRAOLA 12. Khan Bahadur Sir ABDUL HAMID, CIE, O.B E. Finance Member. Dale of Elanon. 25th February, 1938. Ditto Ditto. Ditto. Ditto. Ditto. Ditto. Ditto. Dale of Nomination 17th March, 1938. Ditto Ditto

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·REPORT OF THE PUBLIC ACCOUNTS COMMITTEE. PART I.-CIVIL, POSTS & TELEGRAPHS AND DEFENCE SERVICES. Financial results of the year --The following table compares the oniginal grants or appropriations with the expenditure actually incurred during the year- (In lalha of rupees ) Original Final Actual grant or grant or expenditure appropriation appropriation Expendicurs changed to seveda (sated) 30,54 30,87 30,39 Expenditure charged to capital (vated) 1.24 1.05 1,02 31,56 6,00 32,11 6,08 31,44 2,08 Dasbarements of loane sod ad Fodces (Foted) Total voted .. 37,66 38,17 34,42 Expenditure charged to revenue (con Yoted) Expendituro charged to capital (non Toted) 75,64 22 76,94 19 77,04 11 Total Don-Totod 75,85 77,13 77,18 Tocal expenditure cbarged to revenue Total expenditure charged to capital Dubarnetaenta of loans and advances 106,18 1,23 107,61 1,43 107,43 1,19 2,98 8,00 8,08 . GRAND TOTAL 113,41 115,30 1J1,60 There was thus a total saving of Rs 370 lakhs or 3 21 per cent of the final grant. The following table compares the percentages of savings in the three main sections of the budget for the last five years 1932-33 1933 34 1934 35 1935-36 1936.31. Expenditure charged to revenue 19 10 56 35 Expenditure charged to capital 15 2 tyy if-74 Duborgements of loan, and advances 37 23 3 49 2 8 79 50 82 Combined percentage 59 27 29 1 69 3 21 The large savings under disbursements of loans and advances mainly contributed to the increase in the combined percentage,

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·3 Item (17) --The share of the Central Government on account of the irrigation works in the Nasırabad Seetion of the Lloyd Barrage Project for 1936-37 was adjusted . 1936-37 accounts instead of in 1937-38 as originally contemplated. Item (18).—The excess was due to some special advances being granted by the Government of Burma towards the close of the year and also to increased charges for destruction of uncurrent coins We recommend that the necessary excess grants be voted by the Legislative Assembly. 3 Minutes of Proceedings - We append the punutes of our proceedings which we desire, as usual, to be regarded as a part of our report In the following paragraphs we shall refer only to some of the more important questions considered in the course of our examination 2. 7.... 1. J.PL w substantial savings in past years, has been accepted and acted upon in framing the demands for 1938-39 But we feel that this principle may usefully be extended in a limited number of Grants to cases where it has been found that there are savings year after year under particular sub heads We also wish to repeat our former recommendation that larger units of appropriation both for budgeting and for appropriation report purposes should be devised in a limited number of Grants as an experiment to see if it would not lead to more accurate estimating and indeed to economy and hope that a start will be made on this in the next Demund for Grants The progressive imprm ement thus shown is satisfatory and we trust that with the issue of instructions, as recommended by us last year, for the latest figures of actuals to be carefully studied immediately before a supplementary demand is submitted to the Legislature this position will be maintained 6 Capital Works Erpenditure --We have frequently had occasion to comment on the large savings in the provision for works included in projects financed from Capital and owing to the difficulties involved in budgeting for the expenditure estimated to be incurred on a continuing scheme during the arbitrary division of a financial year, we feel that the soundest method is to provide the sum required in a fund from which expenditure can be met as the work pro- Lati1 IM 11 refore ld be anni A 11 1. 17 7 Education, Health and lands Department -In regard to the research schemes financed by the Insperial Council of Agricultural Research from the ·2 2. Excesses.- In the following cases the actual expenditure exceeded the grants voted by the Legislature: Excc99 requiring Item Namo of Granit. Final Actual the voto No. Grant. Expenditure. of the Legislature. Rs. Rg. Rs. 9,127 1 1 64,08,000 1,07,000 64,17,127 12,03,486 7,98,368 7,96,486 2 18Salt 22-Irrigation, etc., charged to Rerenuo 32 Home Department 41-Central Board of Revenue 5,468 3 7,92,900 2,08,000 3,145 4 2,755 5 1,50,000 42-Payments to Provincial Governments, etc. 6 2,737 45--Police 2,11,145 1,68,755 1,83,737 14,70,229 1,32,665 .. 4,229 7 1,81,000 14,60,000 1,29,000 95,000 1,27,000 46m-Ports and Pilotago 51-Botanical Survoy 52—Zoological Survey 8 3,665 9 135 95,135 10 54_Nincs 6,762 11 65Census 1,000 1,33,762 1,886 37,97,311 886 12 37,55,000 42,311 13 75–Stationery and Printing 76-B.-Discellancous Adjustinents between the Central and Provincial Governments 14 77-Refunds 3,65,14,000 3,89,31,399 24,17,399 1,49,00,000 1,49,93,660 99,660 16,22,000 16,22,027 27 26,70,000 27,04,986 28,986 15 16 81--Ajmer-Merwara 82-Andamans and Nicobar Islauda 90-Irrigation Works-(Not cbarged Revenue) 17 1,000 1,15,801 1,14,801 1,81,656 18 98-Interest Free Advances 79,85,000 81,66,656 . The more important excesses are briefly explained below :- Item (2).—The excess was mainly due to arrears of working expenses of the Nasirabad Section of the Lloyd Barrage Project and interest thereon payable to the Sind Government being adjusted in the 1936-37 accounts instead of in those of 1937-38 as orginally contemplated. Item (12). The excess was caused by increased supplies of stationery articles to Provincial Governments and to paying and non-paying bodies. Itcm (13).-The excess was mainly due to the increase in the share of the Jute Export Duty payable to Provincial Governments consequent on increased export of jute. Item (14).-Larger payments than were anticipated had to be made to certain States on account of the adjustment of claims in respect of customs duty.

·3 Item (17) --The share of the Central Government on account of the irrigation works in the Nasirabad Section of the Lloyd Barrage Project for 1936-37 was adjustel ip 1936-37 accounts instead of in 1937-38 as originally contemplated Item (18) The excess was due to some special advances being granted by the Government of Burma towards the close of the year and also to increased charges for destruction of uncurrent coins We recommend that the necessary excess grants be voted by the Legislative Assembly 3 Minutes of Proceedings - We append the minutes of our proceedings which we desire, as usual, to be regarded as a part of our report in the following paragraphs we shall refer only to some of the more important questions considered in the course of our examination 11. that: sum substantial savings in past years, has been accepted and acted upon in framing the demands for 1938 39 But we feel that this principle may usefully be extended in a limited number of Grants to cases where it has been found that there are savings year after year under particular sub-beads We also wish to repeat our former recommendation that larger units of appropriation both for budgeting and for appropriation report purposes should be devised in a limited number of Grants as an experiment to see if it would not lead to more accurate estimating and indeed to economy and hope that a start will be made on this in the next Demand for Grants r2 4 VYT 14 -- that the 4-35. The progressive improvement thus shown is satisfatory and we trust that with the issue of instructions, as recommended by us last year, for the latest figures of actuals to be carefully studied immediately before a supplementary demand is submitted to the Legislature this position will be maintained 6 Capital Works Expenditure - We have frequently had occasion to comment on the large savings in the provision for works included in projects financed from Capital and owing to the difficulties involved in budgeting for the expenditure estimated to be incurred on a continuing scheme during the arbitrary division of a financial year, we feel that the soundest method is to provide the sum requireil in a fund from which expenditure can be met as the work progresses, so that the difficulties of grants and lapses are avoided We therefore suggest that the possibility of devising a procedure on these lines should be considered when further large capital works are to be undertaken in future 7. Education, Health and I ands Department -- In regard to the research schemes financed by the Imperial Council of Agricultural Research from the ·4 annual grant of Rs. 5 lakhs received from the Government of India we were impressed with the large balance of about Rs. 40 lakhs held in reserve on account of sanctioned schemes which would take a number of years to complete. We are aware that this is due to a Finance Department ruling but we feel that this large reserve is unnecessary and that it would be legitimate to spend to soine extent against the expectation of future contributions. We therefore recommend that the instructions previously issued to the Imperial Council of Agricultural Research to make no commitments against expectations may be relaxed to the extent of allocating on the assumption of receiving the annual grant for a period of one or possibly even two years ahead. 8. Vizagapatam Port.-We considered the comprehensive report on the financial position of Vizagapatam Port asked for by us last year and Tere glad to note the improvement that had taken place, the receipts for 1937-38 showing a small surplus over working expenditure excluding interest, with no grant-in-aid from Government. We approve of the decision that no further capital expenditure should be incurred unless it can be shown to be definitely remunerative or indispensable in the interests of the Port, and consider that while neither the question of closing the Port nor that of handing it over to the Bengal Nagpur Railway need be pursued for the present, every efforts should be made by keeping the expenditure at the lowest possible level to provide for at any rate part payment of the interest due on the capital invested in the Port. 9. Irregular expendilure in the North-Test Frontier Province. The result of the local audit of the accounts of the Khassadar and other unauthorised funds in the North-West Frontier Province which had been closed down and their balances credited to Government were duly considered by us and we were glad to learn of the action taken to prevent the occurrence of such irregularities in future including the issue of definite instructions as to the method of drawing and accounting for charges relating to “Entertainment Charges ", " Protection and Raids” and “Secret Service Expenditure". We consider that the letter intended to be issued by Government dealing with the irregularities in general and containing an expression of their full determination to take severe steps against any official who, after this warning, indulges in or permits any of his subordinates to indulge in such irregularities, should be issued without further delay and strictly enforced. 10. Posts and Telegraphs.-We were glad to note the marked improvement in the financial position of the Posts and Telegraphs Department as a whole and the continued reduction in the loss on the working of the Telegraphs branch. In connection with the latter the representatives of the Department contended that all possible measures had been taken to bring down the expenditure, in fact they thought that there was some indication that the reduction of staff had been carried too far resulting in a loss of efficiency. The figures supplied by the Director General appeared to indicate that the concessions given to press telegrams accounted for the bulk of the loss of the Telegraphs branch and as this is obviously a matter of importance, we desire that there should be a re-examination of the basis of the calculation of the loss to the Telegraphs section of the Department due to the concessions given to press traffic.

·5 11 Raport of the Military Accounts Cummitee - We append the report submitted by the Military Accounts Committee constituted to conduct a preliminary examination of the Military Appropriation Accounts and connected documents We endorse the recommendations and suggestions made by the Committee both in their report and in the proceedings of their meetings PJ GRIGG UMAR ALY SHAH B DAS JOGENDRA SINGH, N. G. RANGA S SATYAMURTI BHAI PARMA NAND SHER MOHAMBIED KHAN. J. RAMSAY SCOTT R. D DALAL. FAZL-I-HAQ PIRACHA ABDUL HAMID. H. A. C. GILL, Secretary. The 13th August 1938.

·6 Proceedings of the sixth meeting* of the Public Accounts Committee held on Monday, the 18th July 1938, at 2-45 p.m. PRESENT : The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairman. Mr. UMAR ALY SHAH. Mr. B. Das. Sirdar JOGENDRA SINGH. Prof. N. G. RANGA. Mr. S. SATYAMURTI. Bhai PARMA NAND. Members. Captain Sardar Sir SHER MOHAMMED KHAN, C.I.E., M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, C.I.E., O.B.E. Sir G. S. BAJPAI, K.B.E., C.I.E., I.C.S., Secretary, Department of Education, Health and Lands. Vitnesses. Mr. M. W. YEATTS, C.I.E., I.C.S., Joint Secretary, Department of Education, Health and Lands. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. T. K. RAJAGOP, LAN, Representative of the A. G. C. R. The Hon'ble Sir Joux Nixox, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 1. Grant No. 48.–Suricy of India. Vith reference to the note on the transfer of work connected with the army from the Mathematical Instrument Office (Appendix IV) submitted in connection with item 1 of the Statement of recommendations made in previous years (Appendix I), it was explained that the question was being examined and that the Surveyor General wished to put in a revised questionnaire for circulation to the departments of the work they were giving to outside agencies, and that when this information had been collected a conference would be held and a further report would be furnished to the Committee next year. The Committee were disappointed that after the recommendation that had been made in the previous year so little progress had been made and hoped that after the further information now being called for had been received, the conference proposed to be held with representatives of the Defence Department would seriously consider the matter from the point of view of India as a whole. 2. Question of allowing the Mathematical Instrument Office to take work direct from the public. ---The Committee considered the memorandum submitted on this subject (Appendix V) and sugested that, while it might not be profitable for the Mathematical Instrument Office to compete with the trade in ordinary * The proceedings of the first five metings relate to Railway Accounts.

·7 work, it should be made known through the Provincial Governments that the Mathematical Instrument Office is prepared to undertake work for educational institutions and local bodies Ti--- 11 . -- achieved should be submitted next year 4. Photo Litho Slocks ---In connection with the note on this subject (Appendıx VII), it was explained that at present a single annual indent of stores was despatched in August and the greater part of stores received in February and March, ko that at the time of checking a whole extra year's undent was on the book: An expenment was now to be tred of indenting for stores in general use throughout the year so that the entire year's supply should not be received at the busiest time 5 Grant No 51 -Botanical Survey --With reference to the recommendation made the Committee the previous year (item 5 of the Statenient) that Government should consider whether it was necessary to retain the post of the Director of the Botanical Survey now that Burma had been separated, it was stated that no decision had yet been come to largely owing to the representations received from universiting and scientific bodies in India The Committee desired that a further report on this point should be submitted next year. With reference to the statement showing the stock of quinine in the Cinchopa Department at page 130 of the Appropriation Accounts, the Committee dcored to know what steps were burg talen to examine the question of making India self-sufficient as regards qumine It was explained that an officer had been placed on specual duty to examine the question, and that when his report, which was not being awaited, had been ficcived, the action to be a taken in this connection would be considered The Comniittee recommended an excess grant to cover the excess of Rs 3,665 in this Grant 6 Grant No 55 Other Smentific Departments in connection with the grants-1-aid to Scientific Societies and lastitates, a member of the Committee enquired 19 to whether andited accounts were required before the grants were paid so as to see that the money was being expended on the objects for which it was given and not being placed in reserie It was stated that all the insttutes concemed subinitted their annual report in which was given on audited account of their receipts and expenditure with the exception of the Bose Research Institute, Calcutta, which had previously occupiel a special position but whose grant-in-aid Fas now the subject of examination 7 Grant No 52. -Zoolngıcal Suney -An excess vote on account of this Gront to the amount of Rs 22,397 was recommended by the Committer 8. Grant No. 59. ignculture - A member drew attention to the large saving of over Rs 10 lakhs that had occurred in this Grant, and it was explained that this was mainly due to the surrender of Rs 4 Jah hs provided for the Inaod ·8 Dairs Scheme and to the non-payment of money allotted to the Provinces from the Sugar Excise Fund owing to non-submission of their schemes. As the moner allotted to the Sugar Excise Fund was now being funded, such variations would be avoided in future. 9. Wellington Milk Depot.—\Vith reference to paragraph 133 of the Commercial Appendix to the Appropriation Accounts, the question mas raised as to whether retention of the Wellington Alilk Depot tras justified. It was explained that the decision, which was to be made concerning the Anand Dairy Scheme after consideration of Dr. Wright's Report, would also involve the future of the Bangalore and Wellington Depots. After some discussion the Committee agreed that before next rear the Department of Education, Health and Lands should come to a decision as regards the centralising of dairy farm research or, if no decision has been come to, they should independently take up the question of terminating the contract for the Wellington Milk Depot with the military authorities. The Committee adjourned at 5-15 p.D, ** ·9 Proceedings of the seventh meeting of the Public Accounts Committee held on Tuesday, the 19th July 1938, at 11 a.m. PRESENT The Hon'ble Sir JAMES GRIGG, KCB, KOSI, Finance Member, Chairman Mr. UMAR ALY SHAH Mr B DAS Sirdar JOGENDRA SINGH Prof. N. G RANGA. Mr. S SATYAMURTI Bhai PARDIA NAND Members Captain Sardar Sır SHER MOHAMMED KHAN, CIE, MBE Mr. J. RAMSAY SCOTT Dr. R. D DALAL, CIE Khan Bubadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, CIE, OBE, Sir G S BAJPAI, K BE, C.IE, ICS, Secretary, Department of Education, Health and Lands Mr $ Dutt ICS, Under Secretary, Imperial IV trosses Council of Agricultural Research Department MI AC BATTNOCH, CSI, CIE, ICS, Auditor General of India Mr T K RAJAGOPALAN, Representative of the A G. CR The Hon'ble Sir JOHN Nixon, KCIE, CSI, I C.S, Finance Secretary 10 Kedderpore Orphangang Market - With reference to the expenditure shown under Grant No 76-Miscellaneous, fub-head I, a member of the Committee enquired as to why the Market was maintained by the Government of India, and it was explained that the Market, the profits of which went to support the Orphanage was an undertaking inbcrited from the days of the East India Company The suggestion was made that the Market should now be handed over to the Commuttee that runs the Orphanage, and it was desired that this matter should be examined 11 Forest Assets en Vorth Andaman -With reference to paragraphs 171 and 172 of the Commercial Appendıs, it was explained that forest working had DOW been concentrated in South Apdaman, the major portion of the idle assets in North Andaman had been written off and the remaining assets which could not be disposed of, such as jetties, sea-walls, etc, were being kept in condition on a maintenance basis 12. Staff maintained at Jeddah in connection wrth Indian pilgrims ---With reference to item 6 of the Statement of past recommendations, the Committee ·10 was supplied with a statement showing the staff employed in the Indian Pilgrimage Section of the British Legntion, Jeddah (Appendix VIII). It was explained that the Vice-Consul was engaged wholly on work connected with Indian pilgrims, and thint the effective control of the staff employed on this work rested with the Government of India. 13. Rescarch Schemes of the Imperial Council of Agricultural Rescarch.- There was considerable discussion on the research schemes financed by the Imperial Council of Agricultural Research. Comment was made on the large amount of reserve balance in land, and it was explained that the Council were unable to enter into commitments on account of schemes spreading over a number of years beyond the limit of the amount of money actually received. The Committee considered that it should be possible to speed up the sanctioning of good schemes if the Council were allowed to allocate against expectations of contributions as well as against the money nctually in hand. In their view it was financially unnecessary to accumulate a reserve fund of approximately Rs. 50 lakhs, and the Finance Member undertook to consider the question of authorising the I. C. A. R. to allocate for schemes in anticipation of one year's contribution. At the same time the Committee suggested that the explanation for the research schemes given in the report of the Imperial Council of Agricultural Research should be expanded so as to include information of the expenditure incurred up-to-date. 14. Gouernment lands in New Delhi.— With reference to the report on the review of financial administration of Government lands in New Delhi furnished to the Committee (Appendix IX), it was explained that the administration of these properties till they were sold for building purposes was carried out by the Land Development Officer under the administrative control of the Chief Commissioner, Delhi. The system of leases and the arrangement for recovery of rents were generally approved by the Committee. 15. Revenue Estimates. In connection with the variations between the budget estimates and the actuals under Customs' and 'Taxes on Income', a member enquired as to the methods employed in making the estimates, and the Chairman stated that while the estimates would always be at the mercy of world conditions, there was room for improvement both as regards the internal indices and generally, and that the statistical apparatus was now being overhauled by the Economic Adviser and Mr. Chambers. The Committee adjourned at 1-30 p.m. M10 IF AD ·11 Proceedings of the eighth meeting of the Public Accounts Committee held on Tuesday, the 19th July 1938, at 2-30 p.m. PRESENT The Hon'ble Şır JAMES GRIGG, K C.B,K.CSI., Finance Member, Chairman. Mr UMAR ALY SHAH. Mr.B Das. Sirdar JOGENDRA SINGH. Prof. N. G. RANGA MIr. S. SATYAMURTI Bhai PARMA NAND Members. Captain Sardar Sir SFEER MOHAMBIED KRAN, CIE, M.B.E Mr.J RAMSAY SCOTT. Dr. R. D DALAL, C I.E. Khan Bahadur Shaikh FAZL-1-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, CI.E., O BE The Hon'ble Sur JOIN Nixon, K.CIE, C.S.I., I C.S, TWitness Finance Secretary. Mr. A. C BADENOCI, CSI, CI.E., Auditor General of India Mr. T K. RAJAGOPALAN, Representative of the A. G.CR 16. Sterling Debt--Wath reference to the statement showing the debt position of the Central Government at the beginning and close of the year 1936-37 to internal debt. 17 Ercesses over eated grants.-The Committee coverdered the statement showing excesses over individual voted grants given in paragraph 34 of the Appropriation Accounts and decided to recommend that the required excess grants should be voted by the Legislature. 18 Supplementary Grants — With reference to paragraph 43, the Committee were glad to observe that the number of cases in which supplementary demands presented to the Legislative Assembly had proved to be ungecessary, had been considerably reduced, and as regards the surrender of unnecessary funds referred to in para graph 45, they agreed that though no savings should ·12 bo held in reserve for possible future excesscs, too early and too frequent re-approprintions gave rise to a great deal of unnecessary work, and that surrender of funds might justifiably be carried out in the months of December and January. 19. dccorets of the Secretary of State in Council. With reference to the excess reported in paragraph 9 of the Report of the Auditor of Indian Home Accounts it was explained that as the excess was ultimately covered by savings in the Indian portion of the grant, no excess vote was required. 20. Larger units of appropriation. With reference to the recommendation made by the last year's Public Accounts Committee, item 9 of the statement of previous year's recommendations, that the Finance Department should, in consultation with the Auditor General, experiment with a limited number of Grants in order to see whether larger units of appropriation would not lead to more accurate estimating, the Finance Secretary stated that the matter was still under consideration and that a report would be submitted next year. 21. Commutation of Pensions. With reference to item 11 of the statement of past recommendations, the Finance Secretary stated that the recommendation to eliminate the capital head for expenditure on the commutation of prusions had been accepted in principle for being put into effect as soon as the budgetary position allowed, and that certain other minor capital heads had been abolished. The Committee wished to stress the importance of the point that in their view only major budgetary inequilibrium should prevent the application of the principle thus accepted. 22. Recoreries of money due from Government servants on pension. With reference to item 19 of the statement of previous years' recommendations, the Finance Secretary explained that since the previous note was written, the reply of the Secretary of State had been received pointing out a number of difficulties which appeared to make the proposed course of action inadvisable. The Committee. however, recommended that so far as the personnel under the control of the Government of India was concerned, the Finance Department should independently examine the position with regard to the recovery of money due from an officer on pension. 23. Expenditure » W* Dili --With reference to item 23 of the statement of recommendations made in previous year, the Finance Secretary stated that the Committee's recommendation that any further expenditure on New Delhi, which is not of a clearly remunerative character, should be charged to revenue and not to capital, have been accepted in principle and would be implemented as soon as the budgetary position permitted, but added that though at present it was not practicable to ineet the cost of all un-remunerative items from current revenue, such items would only be charged to capital if they were both large and indispensable. The Committee wished to emphasise the importance of the principle that expenditure on un-remunerative items should ab initio be charged to revenue. 24. Grants-in-aid. With reference to the recommendation that the Government of India should insist on obtaining audited statements of the ·13 accounts of all institutions to which grants-in-aid are paid, item 25 of the statement, copies of the instructions issued were supplied to the Committee and accepted as adequate 25. Grant No 20–Stamps.- Comment was made on the provision of a lump sum reserve for unforeseen charges on account of the Security Press, and the Committee desired that the question whether this reserve was justified should be examined. 26 Grant No 25—Interest on Ordinary Debt. With reference to the variation of Rs. 5 lakhs under 'B-3-Irrigation Works (Central)', it was explained that this was the interest on capital expenditure in connection with the Nasirabad Section of the Lloyd Barrage Project, for which no provision had been made in the budget as the orders of the Secretary of State including the payment in the Order in Council had not been received at that time In the ordinary way the payment would have been delayed till provision had 3. AL.8.11 special case. The Committee adjourned at 5-10 pm. M1011D ·Proceedings or the ninth nisoint of the Public Accounts Committee hiclil on Wotuerlay, the 20:11 July 1998, at 11 n.m. l'; 1,1. 'Ilir 11","95,1. fi.!... liriklis 1., 1'::;;,,. V.:::. (72.72:"3. i !!!!^2:1) ks, 1.1.2... . Dr. I: 111, 11.15 hili lili. ordri Sn. I 11. 1':;:""!!! Kl.1; roll.s ! il *:!,!!, ul. Th11.. lol.. Sir lor!t: 82,141. Mil...SI, pis.11:2310 Sirari. snigl. 1,1, II... 10.... Mr. T. Ni list:6.101'11.53. Hipopotatives th... 21.11., (. TP:20. isla Po i una fo..:.:.. D:11: 01/101irinci yol... Willi poifiseer en spoiler for politi: II 11,51.77: 1:1:1. fitoint Ver. 27 F. 1, illes quid'."! !!! :". for dirilis!" 2.7??!!! Le foot!... los ani Telp. Det fiir S.x21:......... rk sanat cap.jir T: in pol.pl:!1:6th 11.« :::?", 17"po poros; Romall transirtions tlmwenzio. Ili ili ility: lilin pediatris !! (:"2018.:27:71•77t to thrifturinn er 2.9f005,608 tof guide.it Vit pl:n kan tage=ive me of working in compus***) 19 lis capital saporite I will linsernament. The calculation of the chargeon 31solo los al Parcie im Telp!- D.partment lad Iyen examined by the l'insine Depurtwnt is late as 1983 1. checkurilis the Auditor General. ::8. Grant Mo. 2 Prese Tule.--It was explained that the greater part of the payments made to Provincial Governments on account of the adminis. tration of agency subjects was fur passport work done on behalf of the Central Government. The Committee agreed to recommend an excess vote on this account, ·15 29. Audit of Customs Rerenue — It was explained that the test-examina. tion of the receipts of customs revenue was mainly concerned with revisions of classification and assessment which had recurring financial results, and that the results having proved satisfactory the present system had been put on a permanent basis. As regards the suggestion that had been made for an exten- Bion of the scope of this Test Audit, the view of the Central Board of Revenue was that any funds available for the improvement of check on customs assess ments would, in the first instance, be more profitably used on the strengthening of internal checks in the Custom Houses, but the Committee desired that the question of extending the scope of the audit of customs receipts should ho further explored and a report submitted next year. The Committee adjourned at 1-15 pm ·16 Proceedings of the tenth meeting of the Public Accounts Committee held on Wednesday, the 20th July 1938, at 2-30 p.m. PRESENT : The Hon'ble Sir JAMES GRICC, K.C.B., K.C.S.I., Finance Member, Chairman, Mr. UMAR ALY SILANI. Mr. B. Das. Sirdar JOGENDRA SIXGN. Prof. N. G. Ranga. Mr. S. SATYAMURTI. Bbai PARMA Naxd. Members. Captain Sardar Sir SHER MOHAMMED KHAN, C.I.E., M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ARDUL HAMID, C.I.E., O.B.E. Mr. A. H. Lloyd, C.S.I., C.I.E., I.C.S., Member, Central Board of Revenue. Titnesses. Mr. T. S. PILLAY, Second Secretary, Central Board of Revenue. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S. Auditor General of India. Mr. T. K. RAJAGOPALAN, Representative of the A.G., C. R. The Hon'ble Sir JOHN Nixon, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 30. Grant No. 164-Customs.Comment was made on the fact that the supplementary grant of Rs. 69,000 obtained in this Demand as a whole and that obtained in the individual sub-head A-1-Other Allowances, Honoraria, etc., had proved to be unnecessary. It was explained that the saving under Customs--Other Allowances, Honoraria, etc.', had been mainly due to less expenditure under rewards in Bombay and Sind, and that in general accurate budgeting for Central Excises expenditure had been difficult owing to indirect control through the Provincial Governments. Now that the administration had come directly under the Central Government the financial control was expected to be much stricter in all respects. 31. Contributions and Donations. With regard to the statement of expenditure under "Grants-in-aid, Contributions and Donations" at page 42 of the Appropriation Accounts, a member asked whether any change had taken place on the amounts donated, and it was stated that there had been no change in the last 8 years but that on the separation of Burma the money available had been reduced, and that the question of distribution and the desirability of associating the Commerce Department with decisions as to payments for seamen's welfare was under examination.

·17 32 Assignments and compensations as deductions from revenue --With reference to item 26 of the statement of past recommendations, it was stated that the rulmg of the Auditor General had been to the effect that on principle payments on account of assignments and compensations could not be treated as deductions from revenue and should be included under 'Expenditure', In some cases however of agreements for a definite division of revenue, the Auditor General agreed that the payments might legitimately be treated as a charge on revenue and not as expenditure, and the Committee suggested that the classification of the payments to the Cochin and Travancore Governments on account of the agreement to divide the Customs revenue collected in Cochin port might be re-examme in the light of this criterion 33 Grant No 17—Taxes on Income --During the discussion on Income tax Admnistration it was stated that the Central Board of Revenue with their Income-tar Adviser were examining the question of increasing the supervisory staff and that it was proposed to employ separate Assistant Commissioners for inspection purposes only The Committee was also informed that an experiment was being made in the audit of Income tax receipts The Committee welcomed the experiment and desired to be informed of the results next year 34. Grant No 18-Salt Comment was made that under A-4 (4) (a)-- Manufacture Section' there had been supplementary grant of R$ 25,000 re-appropriation from this of Rs 13,842 and the final excess of Rs. 31,583. The explanation was given that a larger supplementary grant had been applied for, and on the assumption that the whole of this sum would be received, the . 35 Grant No 41--Central Board of Rerenue. The Committee agreed to recommend an excess vote to cover the excess that had occurred in tba voted Bection of this Grant The Committee adjourned at 5 pm ·18 Proceedings of the eleventh meeting of the Public Accounts Committee held on Thursday, the 21st July 1938, at 11 a.m. PRESENT : The Hon'ble Sir James Grico, K.C.B., K.C.S.I., Finance Member, Chairman. Mr. UMAR ALY SIAH. Dir, B. Das. Sirdar JOGENDRA SIXC. Prof. N. G. Raxga. Dír. S. SATYAMUTITI. Bhai Parma NIND. Dombros. Captain Sardar Sir Smer MOHAJIME:D Kuax, C.I.E., 11.B.E. Dir. J.Raisax SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh F32L-I-HAQ PIRACHA. Khau Bahadur Sir A1112 Hun, C.T.E., O.B.E. Mr. A. D. GONWILA, I.C.S., Deputy Serretary, Department of Communications. Mr. L. B. GILBERT, L.S.E.. Consulating Engineer to to the Gorernment of India. Mr. F. TruMS, C.I.E., J.C.. F.R.E.S., Director of Civil IT'itnesscs. Ariation in India and Burma. Mr. A. CROAD, Engineer Officer, Civil Aviation. Mr. A. S. Bokhari, P.E.S., Deputy Controiler of Broadcasting Dir. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. T. K. RAJAGOPALAN, Representative of the A.G., C.R. The Hon'ble Sir Joux Nixon, A.C.I.E., C.S.I., I.C.S., Finance Secretary. Dir. GHULAM MOHAMMAD, Finance Officer, Communications. 36. Grant No. 49-Dleteorology.--Comment was made on the variation in the expenditure on Weather and other Telegram charges ', and it was stated that under the present system of adjustment the amounts to be paid were calculated in arrear by the Accountant-General, Posts and Telegraphs, on the basis of the valuation of a few typical telegrams, and it was therefore very difficult to frame an accurate estimate. The question of a simpler method of adjustment was under consideration. 37. Grant No. 63--Aviation. Vith reference to the special grants-in-aid from the additional tax on petrol consumed for aviation purposes, it was stated that the provision originally made in the budget included unspent balance of previous years ; and the Committee recommended that the amount ·19 available from the petrol tar should be voted to a special earmarked item iu the Road Fund and allotted froin thus Fund as require 38. Grant tend.. C3-B-Capital Outlay or Ciel ftration charged tu lirer- Ve Comment was made on tlie large aying under this head un compared with the original appropriation It was explained that plans had been prepared for extensive constructions at aerodromics but that in connection with the deains for quarters for different grades of staff sanction had been withheld pending a smiil check asked for by the Fmance Department, which had resulted in considerable saving 39. Broadcasting - The propriety of the transfer of Rs 50,000 under Grant No 69-G -Broadcasting from 6.1Lump provision for experimental and remarch purposes to G--Pay of Ufficers, 6-9 luy of Itabiliments and G3 --Contingencies was questionnd, but it was explimed that the was the first year in wluch technical work on broadcasting was taken er from the Ponts and Telegraphs Departurint and superviel by the Chef Lugineer appointed during the course of the yrar It was agreed that in these circumstances and as a special case the making of a lump pirosis: and its sul-equent transfer hy re-appropriation to the relevant sub-heads was in order. The Committee adjourned at 1-33 p.m ·20 Proceedings of the Twelfth meeting of the Public Accounts Committee held on Thursday, the 21st July 1938, at 2-30 p.m. PRESENT : The Hon'ble Sir JAMES Grico, K.C.B., K.C.S.I., Finance Member, Chairman. Mr. UMAR ALY SITAI. Mr. B. Das. Sirdar JOGENDRA SINGI. Prof. N. G. Ranga. Mr. S. SATYAJURTI. Bhai PARNA NAND. D1cmbers. Captain Sardar Sir Sur MOHAMMED KHAN, C.I.E., M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh Fazi-1-HAQ PIRACILA. Khan Baladur Sir ABDUL HAMII), C.I.E., O.B.E. Mr. A. D. GORWALA, I.C.S., Deputy Secretary, Department of Communications. Mr. A. S. BOKHARI, P.E.S., Deputy Controller of Broadcasting Mr. L. B. GILBERT, I.S.L., Consulting Engineer to Vitnesses. the Government of India. Mr. M. S. A. HYDARI, C.I.E., I.C.S., Secretary, Department of Labour. Mr. N. MAHADEVA AYYAR, I.C.S., Deputy Secretary, Department of Labour. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. T. S. SANKARA AIYAR, Director of Finance, Railway Department (Railway Board). Mr. GHULAM MOHAMMAD, Finance Officer, Communications. Mr. T. K. RAJAGOPALAN, Representative of the A.G., C.R. The Hon'ble Sir John NIXON, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 40. Radio Publications. With reference to the loss incurred on the publication of the Indian Listener and the Awaz set out in paragraph 239 of the Commercial Appendix, it was explained that at a time when the number of stations was increasing the number of pages of programmes grew much larger without it being possible to raise the price of the publication in relation to the extra cost of production all at once. However, with increaseing circulation it had been possible to secure a cheaper printing contract, and as recommended by the Public Accounts Committee last year, item 33 of the ·21 -41 11 statement of previous year's recommendations, non-radio advertisements were being admitted and the loss was steadily decreasing 41. Vizaga patam Port --There was a considerable discussion of the report on the trading and financial position of the Port of Vizagapatan (Appendix X) asked for by the Committee last year, item 40 of the statement of previous year's recommendations The Secretary of the Communications Department stated that the position now was that the receipts were covering the ordinary working expenditure, though without paying interest on the capital, and that last year there was a small favourable balance of Rs 31,000 He added that it had been decided that no further capital expenditure has to be incurred unless it could be shown to be either definitely remunerative or absolutely esseutial in the interest of the Port The Committee accepted the view that it would be unwise for the present moment when there was every prospect depreciahe made, nvested in it. As regards the railway traffic to the Port, the Commuttee were anxious that the freight rates charged to Vizagapatam should not be unfar as compared to those charged to Calcutta, and it was explained that the Admirustrative Officer had been instructed to raise the question of freight rates with the Railway Board if there were any grounds for bolling that these discriminated against the Port of Vizagapatam The Committee recommended that every effort should be made to keep the expenditure at the lowest possible level so as to provide for the payment to Central revenues of, at any rate, a part of the interest on the capital, and desired that the question whether full provision was being made to meet depreciation charges should be further considered and a report on this point submitted next year. 42. Grant No 73-Ciri Forks --Fith regard to the vanations which occurred under individual sub-heads of this Grant, the Committee recognised the difficulties created by urgent and unforeseen works, but desired to make a general recommendation that the greatest foresight possible in the circumstances should be exercised in the preparation the original estimates 43 Central Public Works Department -In connection with the report on the staff employed in the Central Public Works Department (Appendıx XI), submitted in accordance with item 32 of the statement of past recommendations, the Secretary of the Department of Labour stated that the question of transferring work at present done for the Government of India by the Provincial Public Works Department to the Aviation Circle and the possibility of amalgamating one of the Delhi Divisions with the Sımla Division was under examination , that the Chief Engineer had been asked to review the whole position and report to the Government of India not later than the first of September, and that the matter would then be gone into by the Labour and Finance Departments and a further report submitted next year 44. Grant No 22-Irrigation -As regards the payment to the Government of Sind of the share of Central Government on account of Imgation in the Nasirabad Tehsil, Baluchistan, by the Lloyd Barrage and Canals, it was ·22 explained that as the orders of the Secretary of State had not been received provision had not been made in the Central Budget; but as the Goverment of Sind bad budgeted in advance for this receipt, and as the delay in payment would increase the amount of interest due on the arrears of maintenance, the Finance Department had agreed to make immediate payment. The Committee agreed to recommend an excess vote on this account to cover the excess in this Grant. 45. Grant No. 54lines. A rote to cover the excess in this Grant was recommended by the Committee. 46. Grant No. 73—Civil Works. In connection with the percentages of establishment charges given in paragraph 8 (ix) of the Important Comments to this Grant, the Auditor General stated that the percentages included charges not strictly debitable to the establishment of the Central Public Works Department for the purpose of comparing the cost of their establishment trith the work done by them and the Committee desired that next year figures should be given to show the establishment percentages after excluding irrelevant items. The Committee adjourned at 5-30 p.m.

·22 explained that as the orders of the Secretary of State had not been received provision had not been made in the Central Budget; but as the Goverment of Sind had budgeted in advance for this receipt, and as the delay in payment would increase the amount of interest due on the arrears of maintenance, the Finance Department had agreed to make immediate payment. The Committee agreed to recommend an excess vote on this account to cover the excess in this Grant. 45. Grant No. 54-Mines.-A vote to cover the excess in this Grant was recommended by the Committee. 46. Grant No. 73—Civil IVorks. In connection with the percentages of establishment charges given in paragraph 8 (iv) of the Important Comments to this Grant, the Auditor General stated that the percentages included charges not strictly debitable to the establishment of the Central Public Works Department for the purpose of comparing the cost of their establishment with the work done by them and the Committee desired that next year figures should be given to show the establishment percentages after excluding irrelevant items. The Committee adjourned at 5-30 p.m.

·23 Proceedings of the thirteenth meeting of the Public Accounts Committee held on Friday, the 22nd July 1938, at 11 a.m Lopet ETT The th teret Central thest PRESENT The Hon'ble Sır JABES GRIGG, KCB, KC.SI, Finance Member, Chairman Mr UMAR ALY SHAH. Mr B Das Sirdar JOGENDRA SINGH Prof. N G RANCA Mr S SATYAMURTI Bhai PARMA NAND Members Captain Sardar Sir SHER MOHLAMMED KHAN, CIE, MBE Mr J. RAMSAY SCOTT Dr R.D DALAL, CIE Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA Khan Bahadur Sir ABDUL HAMID, CIE, OBE Mr. M S A HYDARI, CIE, ICS, Secretary, Department of Labour Mr. N MAHADEVA AYYAR, ICS., Deputy Secretary, Department of Labour Mr. M. Slade, ICS, Societary, Department of Com- Mr Y N SUKTHAXKAR, ICS, Deputy Secretary, TVnesses, Department of Comnicrce Si James PITKEATALY, CMG, CIE, C 7.0, CBE, DSO, Chief Controller of Stores, Indian Stores Department R. B KIRPARAM, Deputy Director of Administration, Indian Stores Department Mr AC. BADENOCH, CSI, CIE, ICS, Auditor General Mr. GAULAM MOHAMMAD, Finance Officer, Communications. Mr. T K RAJAGOPALAN, Representative of the AG, C.R Mr. ISHWAR DAYAL, Audit Officer, Indian Stores Department. The Hon'ble Sur JOHN Nixon, KCIE, C.S.I, ICS, Finance Secretary merce the pay of the Controller of Emigrant Labour was niet from the Emigrant Labour Fund, and that only the cost of the subordinate establishment of 8 clerks was financed from this Grant. As regards the work done, the Secretary of the Department of Labour promised to supply copies of the annual ·24 report on the working of the Tea Districts' Emigrant Labour Act to the members of the Committee. 48. Reserves for unforeseen works.-Comment was made on the large reappropriations under 'Minor Works' in Grant No. 73—Civil Works, and it was stated that at the time the budget was being made up, the authorities were not in a position to fomulate exactly the minor works to be carried out but asked that the amounts available should be placed in reserve. The Auditor General stated that the sub-head'P Reserve for unforeseen works and repairs' was intended for works unforeseen at the time of the budget and not for works for which estimates were not ready in time ; and the Committee desired that this should be borne in mind, and that so far as possible, this reserve should be restricted to re-appropriations for minor works. 49. Pro rata Distribution. The system of pro rata distribution by which the total expenditure on account of establishment charges is distributed between the Central Government, Provincial Government and the Defence Department on the basis of the actual outlay of the year on the works of the respective authorities came in for considerable discussion. The Committee appreciated the fact that under the pro rata system of distribution it was impossible to have accurate estimates of establishment charges divisible between various Governments, as the amounts could not be accurately estimated until the works charges of the year were definitely ascertained ; and they reconımended that the method of levying departmental charges at fixed rates should be adopted wherever Provincial Governments could be induced to accept it. The Committee desired to be informed next year of the progress made in this direction. 50. Review of Grant No. 73—Civil Works.—The Committee were inclined to think that the difficulties of budgeting for Civil Works could be reduced by the amalgamation of sub-heads, and though they were anxious that any amalgamation should not destroy the effectiveness of budget control they asked that a general review of the Grant should be conducted both for this purpose and for that of fixing the responsibility for defects in budgeting more clearly between the Public Works Department and the other Departments concerned. 51. Calcutta Presses.—With reference to last year's recommendation (item 30 of the statement), it was reported that plans and estimates for the amalgamation of the Hastings Street Press with the Dharamtala Press had been received and that it was being considered whether it would be a paying proposition. The Committee felt that considerable delay had already occurred and desired that consideration of the question should be expedited and a report submitted next year. 52. Stationery Stores.—The question was asked as to the reasons for the considerable augmentations of the original appropriations under several subheads in group C—Stationery Stores of Grant No. 75--Stationery and Printing, to which was attributed the excess in the voted section of the Grant. It was stated that the budget provision was liable to be upset by variations in the requirements of the Provincial Governments, as explained in a note by the Controller of Printing and Stationery. (Appendix XII).

·25 connection with paragraph 253 that large differences had been w the New Delhi Presses, It was explained that this was primarily due to difficulties experienced in assessing the stock of type and metal in these Presses, and that detailed instructions to avoid large differences in future were now being worked out 54 Central Publication Branch - With reference to the value of publica- Commercial red whether 1.e distributed free or at half price rather than destroyed 55. Indra Stores Department, London-In connection with item 29 in the statement of action taken on previous recommendations, the Chief Controller of Stores stated that the question of the amalgam of the India Stores Department, London with the Indian Stores Department had been fully examined in the report which he had just submitted, and that the orders passed In this connection would be reported to the Committee next year The Committee adjourned at 1-30 p.m. 1 ·Proceedings of the fourteenth meeting of the Public Accounts Committee held on Friday, the 22nd July 1938, at 2-45 p.m. PRESENT : The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairman. Rir. UMAR ALI SHAH. Mr. B. Dis. Sirdar JOGENDRA SINGH. Prof. N. G. RANGA. Dr. S. SATYAMURTI. Bhai PARJA Nand. Members. Captain Sardar Sir SHER MOHAMMED KHAN, C.I.E., M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Sir ABDUL HAMID, C.I.E., O.B.E. Sir AUBREY METCALFE, K.C.I.E, C.S.I., M.V.O., Secretary, External Affairs Department. Mr. V, Narahari Rao, C.I.E., Crown Finance Officer. Mr. G. K. S. SARMA, Under Secretary, External Affairs Witnesses, and Political Departments. Ar. E. C. PRICE, Finance Sercretary, Government of the North-West Frontier Province. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Dr. T. K. RAJAGOPALAN, Representative the A. G., C. R. The Hon'ble Sir John Nixon, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 56. Grant No. 56-Eduction. With reference to item 39 of the statement showing action taken on previous recommendations, it was stated that the grants made to the Chiefs' Colleges had been examined and had been fixed on a revised scale for a period of 5 years froin 1937-38, at the end of which the question would be re-considereri. 57. Grant No. 83 -- Rajputana.--With reference to the suggestion that there should be a pro forma account showing the expenditure and receipts of the year in question to be added to the Demand, it was explained that in view, of the difficulties pointed out by the Auditor General, it had been decided that the question should not be pursued for the present. In the case of Grant No. 83 the expenditure of Rs. 13.1 lakhs against which receipts amounting to Rs. 3 lakhs were collected, included expenditure on the Resident in Rajputana and political relations with the States besides that of administration of Railway police. 58. Grant No. 35-Hyderabad.—Regarding thc unadjusted excess under sub-head ' B.-Aliscellaneous of Account I, which had shown an excess for the fifth year in succession, it was explained that this was due to belated ·21 to in 1 debits received from the Military Adviser, Indian State Forceg who had to obtain them from the Muitary Department, and that steps were being taken for earlier and more accurate adjustments in future 59. Frontier T'atch and Tard -In connection with paragraphs 9 to 15 of the Important Comments below the appropriation Accounts relating ttee examined the more impoi Endıx XIII) It Traa cxplained that of the twenty six unauthorised funds, the balances of twentyfour funds had been credited to Government, and of the remaining two, one was arl account kept with the Imperial Bank and the other was made up of moneys with which Government had no concern The balances of both have been disbursed and the funds closed The Foreign Secretary stated that the method of drawing and accounting for charges relating to" Entertainment Chargey", “ Protection and Raids” and “ Secret Service " had now been defined, and that instructions had been issued that money should not be drawn from the Treasury in advance of tea the letter to be issued by the ties in general, the Foreign $c and that a report would be made to the Committee next year The action taken on the various irregularities was accepted as adequate , and the Committee left it to the Aydıtor General to report should the position be unsatisfactors in future 60 Incidence of Persian Gulf Expenditure --With reference to item 38 of the statement showing action taken on previous recommendations, it was stated that the question of the incidence of Persian Gulf expenditure was still under consideration with His Majesty's Government, and that the whole question was being carefully cxamined The Committee commented on the great delay that had taken place and recommended that a decision should be arrived at as soon as possible 61 Irregularities in the arcounts of certain schemes of developinent in the North-West Frontier Province --\Vith reference to paragraphs 2 to 4 of the Important Comments under " Political " in the Appropriation Report (at pages 367-368), it was stated that disciplinary action had been taken against the officials found responsihle for the irregularities in the account of the Office opened for the Development of Agriculture and allied activities, that the Directorate of Agriculture had been abolished and that the marble factory with wluch the Government of India were concerned had been sold The Coromittee adjourned at 5-30 pm ·28 Proceedings of the fifteenth meeting of the Public Accounts Committee held on Monday, the 25th July 1938, at 11 a.m. PRESENT ; The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairman. Members. Mr. UMAR ALY SHAH. DIr. B. Das. Prof. N. G. RANGA. DIr. S. SATYAMURTI. Bhai PARMA NAND. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, C.I.E., O.B.E. Mr. M. SLADE, I.C.S., Secretary, Department of Com-) merce. 6 Mr. Y. N. Sukthankar, I. C. S., Deputy Secretary, Department of Commerce. Witnesses. Mr. J. N. Talukdar, I.C.S., Deputy Secretary, Home Department. Mr. A. C. Badenoch, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. T. K. Rajagopalan, Representative of the A.G., C.R. 62. Grant No. 46--Ports and Pilotage.-With regard to appropriation under A-1 (2).-Pay of Establishments', which proved unnecessary, it was explained that the additional provision was for extra Wireless Operators, payment for whom was recovered from the Port Commissioners earlier than was expected. Comment was made on the savings under sub-head 'A.-4. (1) .Pay of officers'. It was explained that this was due to the fact that more pilots had gone on leave than was anticipated, but as savings had appeared under this sub-head for the last three years, the Committee considered that in future the bu estimate should be reduced by a lump cut, if necessary. 63. Touring by the Nautical Adviser. The fact that the original budgot provisions under 'B.-3.-Allowances, Honoraria, etc.' had had to be augmented for the second year in succession on account of moro touring by the Nautical Adviser was commented on, and it was stated that the adequacy of the budget provision under this sub-head was under examination. 61. Advance leave Salary.--Attention was drawn to the advances of leave salary which had necessitated the modifications under C.-3 (1)', 'C.-6 (1)' and C.-7 (1)'; and it was explained that these were taken by R. I. N. Officers, whose services were lent to the Commerce Department, under paragraph 166 of the Marine Regulations, India.

·29 . 1 65. Bengal Pilot Service - In connection with paragraph 189 of the Commercial Appendix, the question was raised as to why it was necessary to maintain a Heavy Repairs Reseive m addition to a Depreciation Fund for the Bengal Pilot Service. It was explained that the Depreciation Reserve was used for writing down the assets as a whole so that the pulut vessels might be replaced at the end of their period of useful service, while the Heavy Repairs Reserve was for reconditioning the vessels and was a method of equalising repair expenditure from revenue be special circumstances in the maintenance of a separate Heav, 1: Reserve was equal to 7 years' contributions this appeared prima facie to be excessive, and they desired that the necessity for this Reserve or alternatively for the reluction of the amount of the present annual contribution should be examined. 66. Lighthouses and Lightships With reference to item 41 of the statement showmg action taken on previous recommendations, it was stated that the question whether it was necessary to maintain a special fund for replacements and additions as well as a depreciation fund and a general reserve fund for the 1 -- fund was unnecessary and could be abolished, and that a further report on the subject would be submitted next year 67. Grant No 28-Executne Council --The large saving under group head B--Cabinet Secretary' was noted, and it was explained that this was due to the appointment of a part-time instead of a full-time Secretary of the Executive Council 68. Gra Secret Sern estimate of estimate hac whether a lump sum cut should not be imposed The Committee adjourned at 1-20 p m. ViolFunD 0 ·30 Proceedings of the sixteenth meeting of the Public Accounts Committee held on Monday, the 25th July 1938, at 2-40 p.m. PRESENT : The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairman Mr. UMAR ALY SHAH. Mr. B. Das. Prof. N. G. RANGA. Mr. S. SATYAMURTI. Bhai PARMA NAND. Members. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, C.I.E., O.B.E. Mr. G. H. SPENCE, C.S.I., C.I.E., I.C.S., Secretary, Legislative Department. Witnesses. Mr. K. SANJIVA Row, C.I.E., Joint Secretary, Finance Department. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. T. K. RAJAGOPALAN, Representative of the A. G., C. R. 69. Grant No. 76--Miscellaneous.-- With reference to the reappropriation of the entire provision made under 'J.-1 (1).-Pay of Officers', it was explained that this was because no official member had been included in the Delegation to the meeting of the Assembly of the League of Nations that year. The Delegation had been up to the normal strength but on that occasion all the members had been non-officials. Some members of the Committee felt that as the Delegation represented India as a whole there was a case for a contribution from the Indian States. 70. The Committee then proceeded to deal with the remaining Grants under the control of the Finance Department who in the absence of Sir John Nixon were represented by Mr. Sanjiva Row. 71. “ Purchases and Sales of Silver Account ".-In connection with the statement showing the transactions under the head "Purchases and Sales of Silver” during the year 1936-37 (page 207 of the Appropriation Accounts), the question was raised as to whether this account served any useful purpose and need be retained. The Committee agreed that in any case it would be necessary to have an account to accommodate : (a) payments to the Reserve Bank for the return of rupee coin under section 36 (1) of the Reserve Bank of India Act, and (6) incidental charges connected with silver sales including shipment and transport;

·31 but they desire to be furnished with a note next year on the question whether the oli debit balance in this Grant should not be written off to Government account. 72. Commissions and Committees Cominent was inade on the large modifications under 'D-2 (1) --Pay of Officers' in Grant No 76--Miscellaneous, be possible to foresce and to provide for such Committees to a greater extent than appeared to be the case 73. Grant No 7G-B-liscellaneous adjustments belween the Central and Provincial Governments -The large total excess in the voted section of this Grant was explained to be due tu the increased shares of the Provinces in the receipts from the juto export duty, and the Committee decided to rcconimend an excess yote to regularise the excess 74 Agency functions performed by the India Office With reference to item 12 of the statement showing action taken on previous recommendations, it was stated that the question of the transfer of the agency functions, at present performed by the India Office on behalf of the Government of India, to the High Commissioner was now being investigated by Sir Ernest Burdon as a representative of the Government of India, and that a report would be submitted next year 75. Grant No 90-Loans and Advances beaning interest --A member questioned whether there was any necessity for the Reserve of Rs 10 lakhs provided in th Grant, and the Committee desired that as savings had occurred in this Grant for a series of years, the point should be examined The Committee adjourned at 5 pm ·32 Proceedings of the seventeenth meeting of the Public Accounts Committee held on Tuesday, the 26th July 1938, at 11 a.m. PRESENT : The Hon'ble Sir JAMIES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairmuin. Mr. UMAR ALY SHAH. Mr. B. Das. Prof. N. G. RANGA. Mr. S. SATYAMURTI. Bhai ParMA NIND. Captain Sardar Sir SIER MOHAMMED KAN, C.I.E., Members. M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMIS, C.I.D., O.B.E. Mr. G. V. BEWOOR, C.I.E., I.C.S., Director-General of Posts and Telegraphs. 3 Mr. T. R. SADASIVAM, Deputy Director-General, Posts Witnesses. and Telegraphs. Dir. A. BROKENSHAW, Chief Engineer, Posts and Telegraphs. Mr. A. C. BADENCOH. C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. GHULAM MOHAMMAD, Finance Officer, Communications. Dir. K. R. S. Rau, Accountant General, Posts and Telegraphs. The Hon'blo Sir JOHN NIXON, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 76. Loss on Telegraphs Branch. The Director-General of Posts and Telegraphs explained the various measures taken to reduce the loss on the working of the Telegraphs Branch. Actually, the loss had been continuously reduced and was about 30 lakhs for the year 1936-37 and was anticipated to be about 17 lakhs for 1937-38. The loss would have been less but for the fact that Telegraphs traffic had not recovered in spite of the reduction in rates effected in 1934. The Director-General indicated that perhaps retrenchment had been carried too far in this Branch resulting in a deterioration in the quality of the service and that it might be necessary to face some additional expendituro so as to improve the service and attract more traffic. There was considerablo discussion over the concessional rates allowed for Press Telegrams including multiple address telegrams to different stations, and the figures supplied seemed to indicate that the bulk of the loss as now reduced was due to the concessiona ·33 commercial results of the telegraph and telephone systems together which would show no loss 77. Repayment of accumulated losses --With reference to page 3 of the Annual Report of the Indian Posts and Telegraphs Department, the method of repayment of the accumulated net interest bearing loss of the Department, which was Rs 55 lakhs at the end of 1935-36 and of the accumulated loss on Press traffic and on the Radio Branch, as announced in the Budget Speech, was explained, and it was stated that on the completion of the annual payment of Rs. 8} lakhs for the next 5 years the Department would have repaid all past losses, and that the question of the transfer of at any rate part of the surplus earnings to a Revenue Reserve Fund may have to be considered 78 Post Office Insurance Fund. With reference to Appendix XIV of the Annual Report showing the business of the Post Office Insurance Fund in Life Insurance, Endowment Assurance and Monthly Allowances, a member suggested that the Fund which at present was restricted to Government servants and the employees of Local Funds, should be opened to the general public. It was explained that this was done, the management expenses would be greatly increased and the alteration in the mortality figures would completely upset the scale of premia at present fixed. The Committee adjourned at 1-15 p m.

·34 Proceedings of the eighteenth meeting of the Public Accounts Committee held on Tuesday, the 26th July 1938, at 2-30 p.m. PRESENT : The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairman. Mr. UMAR ALY SHAH. Mr. B. Das. Prof. N. G. RANGA. Mr. S. SATYAMURTI. Bhai PARMA NAND. Captaiv Sardar Sir SHER MOHAMMED KHAN, C.I.E., { Members. M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh FAZL-I-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, C.I.E., O.B.E. Mr. G. V. BEWOOR, C.I.E., I.C.S., Director-General of Posts and Telegraphs. Mr. T. R. SADASIVAM, Deputy Director-General, Posts Witnesses. and Telegraphs. Mr. A. BROKENSHAW, Chief Engineer, Posts and Telegraphs. Dir. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. GHULAM MOHAMMAD, Finance Officer, Communicau tions. Mr. K. R. S. Rav, Accountant General, Posts and Telegraphs. The Hon'ble Sir JOHN Nixon, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 79. Renewals Reserve Fund. In connection with the contribution of Rs. 25 lakhs to the Renewals Reserve Fund, as given in the summary of results of the working of the Department at page 1 of the Appropriation Accounts, it was explained that this was distributed among the Branches not in strict proportion to the capital involved in each Branch but after taking into account the longer life of the assets of the Post Office Branch, and that the further adjustment on this account between the contributions of the Telegraphs and Telephone Branches was now under consideration. 80. rccuracy of budgeting.--It was noted that the original budget liad been upset by the decision taken after the estimates were framed for the allocation of expenditure between Working Expenses, Capital and Renewuls Reserve Fund whereby larger debits had been passed on to the Renewals ·35 Reserve Fund than were orginally estimated, and that for Capital Works under Grant No 91 the main disturbing factors were the changes in the programme of telephone works and the abandonment of works intended for the Railway, Civil Aviation and Provincial Governments It was explained that a Telephone Development Fund har now been created to finance the 5-year Capital Programme froma 1938-39, and that the railways and other departments bad been informed that unless a firma demand for new schemes is made by a given date it will not be possible to undertake them 81. Frauds by Extra Departmental Agents -In connection with paragraph 12 of the Audit Report, attention was drawn to the large number of frauds committed by Extra Dep. mainly related to Savings ); where immediate riidetyisilu PUNIJ -- : measures to reduce the possoluty vi uauu ." 82 Grant No 23, sub-head. "F-Enginecring Expenses" Comment was made on the amounts of the re-appropriations under Pay of Officers' and Pay of Permanent Establishment under this sub-bead, and it was explained that the variations were small and that according to the new system of subheads based on the recommendation made by the Committee last year, which had now been introduced, these vanations would not occur in future The Committee adjourned at 5-30 pm, ·36 Proceedings of the nineteenth meeting of the Public Accounts Committee held on Wednesday, the 27th July 1938, at 11 a.m. PRESENT : The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I., Finance Member, Chairman. Mr. UMAR ALY SHAH. Mr. B. Das. Prof. N. G. RAXGA. Mr. S. SATYAJURTI. Bhai PARMA NAND. Captain Sardar Sir SHER MOHAMMED KHAN, C.I.E., Members. M.B.E. Mr. J. RAMSAY SCOTT. Dr. R. D. DALAL, C.I.E. Khan Bahadur Shaikh Fazl-1-HAQ PIRACHA. Khan Bahadur Sir ABDUL HAMID, C.I.E., O.B.E. The Hon'ble Mr. J. A. THORNE, C.S.I., C.I.E., I.C.S., Secretary, Home Department. Mr. J. N. TALUKDAR, I.C.S., Deputy Secretary, Witnesses. Home Department. Mian MUHAMMAD RAFI, B.A., Bar.-at-Law, Secretary, Legislative Assembly Department. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. T. K. RAJAGOPALAN, Representative of the A. G., C. R. The Hon'ble Sir John Nixon, K.C.I.E., C.S.I., I.C.S., Finance Secretary. 83. Grant No. 80-Delhi.--In connection with note 5 under this Grant (at page 299 of the Appropriation Accounts), the Committee desired that in future the Auditor General should elaborate the note on the receipts and expenditure of Delhi Province. 84. The Committee decided to recommend excess votes to cover the excesses that had occurred under Grants Nos. 81.-Ajmer-Merwara and 82.- Andamans and Nicobar Islands. 85. Shipping Department, Andamans.-With reference to the remark in paragraph 208 of the Commercial Appendix that a better result could be obtained if the freight on timber was raised to that charged by outside steamers, it was explained that there were difficulties in that the S. S. Maharaja had to provide the service for the whole Settlement, and its programme of voyages could not be regulated to suit the timber trade like that of outside steamers, but that the question of raising the freight on timber was being considered. 66 ·37 86. Commissariat Department, Andamans — With reference to the Audit Comments in paragraphs 230—231 of the Commercial Appendix, the Committee desired that the reason for the sale of butter and mutton at less than cost price should be examined and a report sulmutted next year 87. Date of publication of Appropriation Iccounts -A member drew attention to paragraph 118 of the proceedings of the Public Accounts Committee, 1937, where the non-official members of the Committee recommended that in future the Appropration Accounts should be published as soon as they were available. The Auditor General explained the steps that had been taken on his advice by Provincial Governments to secure this result, and the and the possibility of simular action I waiting for the Accounts to be laid .re should be examined 88. The non-official members of the Committee desired to reiterate their recommendation of last year that the accounts and the relative audit reports of both the Federal Railway Authority and the Crown Department should be land on the table of the Central Legislature 89. The Comunittee desired to thank the Auditor General for the valuable T' - IN .. OU tance rendered by him to the Committee ·38 REPORT OF THE MILITARY ACCOUNTS COMMITTEE, 1938. We are appointed in pursuance of the recommendation made in paragraph 31 of the Report of the Public Accounts Committee on the Accounts of 1929-30 to make a preliminary examination of the Appropriation Accounts of the Defence Services and connected documents. We have been assisted in this work by the Auditor-General, the Defence Secretary, the Financial Adviser, Military Finance, and the Military Accountant General. The results of our examination are, as usual, embodied in the proceedings of our meetings which we desire to be treated as a part of our report. The following paragraphs deal only with some of the more important points. 2. Revision of Regulations.-We are gratified to note that considerable progress has been made in the task of revising the Army Regulations, the more important of which have now been issued, and to be assured that there is every probability of the main work being completed before next year. We were also glad to learn that the revised Equipment Regulations and Tables of the R.A.F. are nearing completion and that stock limits have been prescribed in the revised edition of the Equipment (Stores) Regulations which has been issued and is now in general use. The review of stocks in relation to these limits, which is now proceeding, we consider to be most important and recommend that the Air Officer Commanding should be asked to give a full report next year of the progress made and of the results of the review. 3. rccelerated payment in llarch.-We were glad to note that the stringent orders issued by the Engineer-in-Chief to prevent works being rushed through in the last weeks of the financial year and to enforce the surrender of fuuds that could not properly be carried out within the time for re-grant in the following year had resulted in considerable improvements, but we consider that while the re-grant of lapses is adequately provided for more attention should be paid to the necessity of making cuts for the amounts thus unexpended. 4. Correction of over-budgeting.---We were glad to learn that the system of making a lump sum cut on account of the accumulation of small savings throughout the Grant as a whole had been put into effect from the year 1937-38. We realise that this Grant is particularly liable to disturbing factors such as military operations in Tribal Areas which may neutralise the effect of such an all-over cut, but we are of opinion that the system is normally capable of further development, and we recommend that the Financial Adviser, Military Finance, should be asked to prepare a memorandum on the processes of estimating now in force for the Defence Services and the improvements that might be made in the system. 5. Our main conclusion from the examination of the over-payments and non-recoveries of dues brought to our notice by Audit was that there was a tendency to repeat payments without examination or reference to the original sanction or ruling, and we wish to stress the desirability of a review of the original orders on which standing charges are based at regular intervals, such as we have been assured has now been undertaken by the Military Audit Depart. uent.

·39
6. Defence Rescue Fund. We are inclinel to think that now that the freo
balance in the Defence Reserve Fond has been exhausted, this Fund should ho
restricted to the financing of projects that cannot be completed within tho year
and of specific schemes for which eatinarhal sums have been set apart. We
therefore recommend that a review of the Defence Reserve Fund as a method
of financing expenditure from Defence Estinates should now be undertaken
and o report on the subject submitted next year
r J. GRIGG
B. DAS
S. S.ITY.IMURTI.
SUER MOLLAMMED KILAN.
JC XIXON
II. A. C. GILL, Secretary,
27th July 1938.

·40 Proceedings of the first meeting of the Military Accounts Committee held on Tuesday, the 12th of July 1938, at 11 a.m. PRESENT : The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I. Finance Member, Chairman. Captain Sardar Sir SHER MOHAMMED KHAN, C.I.E., M.B.E. Members. Mr. S. Satyamurti. Mr. B. Das. The Hon'ble Sir JOHN Nixon, K.C.I.E., C.S.I., I.C.S. Mr. C. M. G. OGILVIE, C.B.E., I.C.S., Secretary, Defence Department. Mr. M. R. COBURN, O.B.E., Financial Adviser, Military Finance. Witnesses, Mr. V. NATESAN, Deputy Financial Adviser, Military Finance. Dr. J. PARLBY, O.B.E., Military Accountant General. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General. Mr. W. R. TENNANT, I.C.S., Director of Audit, Defence Services, The Committee first considered the military items in the statement showing action taken or proposed to be taken on recommendations made by them in previous years. 2. Item 28--Allocation of Ecclesiastical Expenditure. In connection with item 28 in the statement showing action taken on previous years' recommendations it was stated that the census had been completed but for certain returns in regard to plains stations which had had to be sent back for correction, and that when these had been revised and duly compiled, the census would be complete. The Committee trusted that this question would be finally disposed of this year and desired that all possible steps should be taken to bring this about. 3. Item 15.-Revision of Army Regulations.--With reference to the report submitted on the subject (Appendix XVII), the Defence Secretary stated that though good progress had been made in the revision of the more important regulations, this would have been more rapid if the Special Officer appointed to this duty had not been incapacitated by illness for a considerable period. The remaining regulations to be revised did not present so large a task and the Defence Secretary stated that the main work should be completed in another year, though it would be necessary for one officer to be retained permanently on the work of revision so as to avoid the accumulation of correction slips. It was also explained that, with the concurrence of the Auditor General, the practice of bringing all individual cases under some section of the regulations ·Proceedings of the second meeting of the Military Accounts Committee held on Tuesday, the 12th July, 1938, at 2-30 p.m. PRESENT The Hon'ble Sir JAMES GRIGG, KCB,KCSI Finance Member, Chairman Captain Sardar Sır SIER MOHAMMED Kuan, CIE, MBE Mr. S Satyamurti. Jembers Mr. B. Das The Hon'ble Sir Join NIXON, KCIE, CSI, ICS Mr. C. MG OGILVIE, CBE, ICS, Secretary Defence Department Mr. M R COBURN, OBE, Financial Adviser, Military Finance Witnesses. Mr V. NATESAN, Deputy Fiancial Adviser, hlitary Finance Mr J PARLBY, O BE, Military Accountant General. M. A C, BADENOCH, CSI, CIE, ICS, Auditor General of India Mr W.R. TENNANT, IOS, Director of Audit, Defence Services 11. The Committee then took up the consideration of the report of the Director of Audit, Defence Services, taking first the examination of the Reconstruction in Baluchistan 12 Paragraphs 32, 33, 34 and 35 - In connection with the financial review of the Quetta Reconstruction, 1936-37, submitted by the Financial Adviser, Military France (Appendix XXV), the Committee agreed that the special procedure of the lump sum contract system adopted for the Quetta programme was justified in view of the rapid and expeditious reconstruction requued, and that Government had not suffered financially from this procedure The question was raised whether the expenditure on the establishment had been kept as low as possible, and it was explained that in the year 1936-37 when the plans were being prepared and land being levelled, the ratio of expenditure on staff to the cost of buildings erected was bound to be high, and that expenditure on establishment could only be considered with regard to the cost of the scheme as a whole The statement of the Defence Secretary that the ratio of the cost of t.stablishment to works constructed in 1937-38 was a particularly low figure, that compared favourably with the percentages of the Central and Provincial Public Works Departments, and that although it was not possible owng to the cutting down of the allotment of funds to carry out the optimum amount of work each year, it was hoped to keep the expenditure on establishment to the level of Rs 45 lakhs provided in the project estimate was noted with satisfaction, and the Committee expressed the hope that every effort should be made to approximate to this.

·42 altogether, but it was pointed out that in view of the rights of the officers concerned to count lodging allowance as part of their pay, the system was reasonable; and this was accepted by the Committee. 7. Item 51-Accelerated payment of bills in March.-—The report of the Director of Audit, Defence Services (Appendix XXI) was considered in connection with paragraph 130 of the Appropriation Accounts, and it was accepted by the Committee that the improvement in this respect over previous years had been material, and it was hoped that the unusual increases in expenditure during the concluding weeks of the financial year, which had occurred in the past, would disappear in future years. The Director of Audit, Defence Services would report specifically only if there were appreciable deterioration from the March 1938 standard. 8. Item 52-Disposal of surplus and obsolete stores.-It was explained that the figures in regard to the total value of stores condemned was available in the statistics maintained by the Military Finance Branch, but the publication of the book value of such stores would be entirely misleading. It was agreed that the procedure for the continuous check of surplus or obsolete stores by the Military Finance Department, and the present system of making the particulars of surplus and obsolete stores available to audit criticism was satisfactory. 9. Item No. 53-Methods of charging the War Office with the pay of officers serving with a lent unit.—It was explained in connection with the note on the subject (Appendix XXIII) that capitation rates were fixed in consultation with the War Office for a period of 5 years, and that in the next quinquennial revision in 1939 a fresh ratio in accordance with the actual numbers in the various ranks of Infantry units of the Indian Army would be adopted. 10. Mechanisation of Ordnance Factory Accounts.-The note with reference to paragraph 29 of the Commercial Appendix to the Appropriation Accounts for 1936-37 (Appendix XXIV) was then considered, and it was agreed that the mechanisation of Ordnance Factory Accounts, which had been carried out in the Ordnance and Clothing Factories in respect of Workmen's Pay Rolls, Cost Accounts and Store Accounts and which had speeded up various accounts and statistics and had brought about a considerable saving in expenditure, had proved satisfactory. The Committee adjourned at 1-15 p.m.

·43 Proceedings of the second meeting of the Military Accounts Committee held on Tuesday, the 12th July, 1938, at 2-30 p.m. PRESENT The Hon'ble Sir JAMES GRIGG, KCB,KCSI Finance Member, Chairman Captain Sardar Sır SKER MOHAMMED KHAN, CIE, MBE Mr. S. Satyamurti. Members Mr B Das The Hon'ble Sir JOIN NIXON, KCIE, C81, ICS Mr. C MG. OGILVIE, C.BE, ICS, Secretary Defence Department. Mr MR COBURN, OBE, Financial Adviser, Multary Finance Trtneoses. Mr V. NATESAN, Deputy Financial Adviser, Military Finance Dr. J PARLBY, O.BE, Mihtary Accountant General. Mr A, C BADENOCH, CSI, CIE, ICS, Auditor General of India MI. V R. TENNANT, ICS, Director of Audit, Defence Services 11. The Compittee then took up the consideration of the report of the Director of Audit, Defence Services, taking first the examination of the Reconstruction in Baluchistan. 12. Paragraphs 32, 33, 34 and 35 -In Connection with the financial review of the Quetta Reconstruction, 1936-37, submitted by the Financial Adviser, Military Finance (Appendix XXV), the Committee agreed that the special procedure of the lump sum contract system adopted for the Quetta programme was justified in view of the rapid and expeditious reconstruction required, and that Government had not suffered financially from this procedure The question was raised whether the expenditure on the establishment had been kept as low as possible, and it was explained that in the year 1936-37 when the plans were being prepared and land bemg levelled, the ratio of expenditure on staff to the cost of buildings erected was bound to be high, and that expenditure on establishment could only be considered with regard to the cost of the scheme as a whole The statement of the Defence Secretary that the ratio of the cost of establishment to works constructed in 1937-38 was a particularly low figure, that compared favourably with the percentages of the Central and Provincial Public Works Departments, and that although at was not possible owing to the cutting down of the allotment of funds to carry out the optimum amount of work each year, it was hoped to keep the expenditure on establishment to the level of Rs 45 lakhs provided in the project estimate wag noted with satisfaction, and the Committee expressed the hope that every effort should be made to approximate to this.

·44 13. Paragraph 36.-The modifications in the normal procedure that had to be allowed to suit the special circumstances of the first contracts were noted and since very short notice was given for the tenders to ensure the earliest possible start of construction in the short working season remaining in 1936, the Committee agreed that it was reasonable to have allowed correction of bona fide errors in the schedule prior to the conclusion of certain contracts. 14. Paragraph 38.- The Committee examined the instances of transactions which audit considered open to question and their conclusions were that: (1) on the question whether the State got the full advantage of the specially reduced price of cement obtained by Government in return for its guarantee that a certain company's cement only would be used for the first six years of reconstruction, there was no reason to think that Government had lost anything by the contractors not being formally notified that cement would be purchascable at the reduced price; (2) the revision of the rate for an important item in the schedule of rates to the financial advantage of the contractors of one group after acceptance of the contract was a correction of an obvious mistake which had been rightly allowed ; (3) the concession allowed to the contractors for payment for hot and cold water installations, special improvements to site, surface crainage and approach roads at the rates in the schedule of rates unmodified by the ratio, without the sanction of the Government of India was a technical mistake ; and (4) as regards the construction without specific authorisation of- . (a) Institute for Royal Army Medical Corps and Indian Hospital Corps, and (6) 18 Class D quarters attached to servants' quarters to Class IX quarters, administrative approval of the scheme as a whole did not exempt the executive authorities from obtaining separate sanctions for such normally unauthorised items, and that specific sanction should have been obtained. As there seems to have been some misunderstanding over the terms of the administrative approval, the Committee desired to lay down for the future that the specific sanction of the Finance Department should be obtained for the construction of each item in the unauthorised list, though these were included in the project estimate approved by the Government of India. 15. Paragraph 6.-The question of over-budgeting and the margin of safety" disclosed in the estimates over a number of years was discussed at length by the Conimittee along with paragraphs 129 and 130 of the Appropriation Accounts of the Defence Services for 1936-37. In considering the appropriations and expenditure under the head '8--Military Engincer Services (including Stores),' the Committee noted that in the past officers entrusted with the execution of works had endeavoured to minimise lapses by rushing through work and the connected expendituro during the last ·45 able practice It was accepted by the Committee that the improvement in this respect over previous years had been material, but they considered that while provision had been made for regrant of lapses, sufficient attention had not been paid to the necessity of makang a cut for the amounts thus unexpended. less than 1 per cent of the n unavorable accumulation 3 Committee considered that this should be dealt with by a lump sum cut. It was explained that thu practice of making a lump sum cut on account of the accumulation of small savings had been adopted since the year 1937-38, but the Committee desired that the Financial Adviser, Military Finance should, before the Committee met next year, send them a memorandum on the processes of estimatig om in force for the Defence Services and his suggestions for their improvement based on bis War Office experience. 16 Paragraph 7-The over-estimate under Pay of Officers' was noted by the Committee, who recommended that a larger lump sum cut on the basis of the average underspendings of previous years should be made under thus head. 17. Paragraph 8-It was explained by the Defence Secretary that as the stages of the scheme for reorgnisation of the Mechanical Transport Services were brought into force at intervals, possible savings came to light and thus there was a saving on the original estimates with consequential benefit to Government. 18. Paragraph 11.-After discussion, in which the Committee was assured that the reserves in the Defence Estimates were only used to augment the existing grants subject to the ordinary rules of control, they agreed that the reserves as now reduced which amount to Rs. 10 lakhs in all supplied only a reasonable provision for unforeseen contingencies and were not excessive. The Committee adjourned at 5 p.m.

·46 Proceedings of the third meeting of the Military Accounts Committee held on Wednesday, the 13th July 1938, at 11 a.m. PRESENT. Finance Member, The Hon'ble Sir JAMES GRIGG, K.C.B., K.C.S.I. Chairman. Captain Sardar Sir SHER MOHAMMED KHAN, C.I.E., M.B.E. Mr. S. SATYAMURTI. Members. Mr. B. Das, The Hon'ble Sir JOHN NIXON, K.C.I.E., C.S.I., I.C.S. Mr. C. M. G. OGILVIE, C.B.E., I.C.S., Secretary, Defence Department. Mr. M. R. COBURN, O.B.E., Financial Adviser, Military Finance. Witnesses. Mr. V. NATESAN, Deputy Financial Adviser, Military Finance. ALr. J. PARLBY, O.B.E., Military Accountant General. Mr. A. C. BADENOCH, C.S.I., C.I.E., I.C.S., Auditor General of India. Mr. W. R. TENNANT, I.C.S., Director of Audit, Defence Services. 19. The Committee continued the examination of the report of the Director of Audit, Defence Services. 20. Paragraphs 14, 15 and 16--Overpayments and non-recoveries due to failure to examine original sanctions.---The Committee noted that the supplementary payments on account of conveyance charges for military animals had been made under the mistaken interpretation of the original sanction and commented on the fact that there was no examination of the original ruling during the 8 years the payments were continued. The non-recovery of departmental charges from a foreign Government mentioned in paragraph 15 and the short recovery of rent described in paragraph 16 were also considered to be the result of the same defect. The Committee were of the opinion that it was desirable that a review of standing charges should be conducted at intervals, and were glad to be assured that the Military Audit Department had started the practice of examining all cases of payments based on standing orders, as the Tesult of which these irregularities had been brought to light. 21. Paragraph 18 Ocer payment of travelling allowance.--In connection with the overpayments on account of free return rail passages to their homes granted to persons serving in the Quetta arca at the time of the earthquake, it was explained that the main cause for the mistake made was that the original orders had been sent by wireless to Quetta when no other means of communication were available, and that the letter of confirmation was issued some time later by another Branch. The Committee noted the fact that the overpayments were mainly the result of mistakes due to the rush of work at the time of the earthquake, when there was the necessity for extremely rapid decisions.

·47 22. Puragraph 22-Irregular payment of rent. The Committee considered that the fact that the rent of the leased bangalow was continued to be paid to the former owner after it has been sold to another party instead of being deposited in court, disclosed an error of judgment which deserved censure ; and the Defence Secretary undertook to look into the action taken against the authorities concerned 23. Paragraph 21Purchase of carts without calling for tenders out of a special grant-in-ard to a Cantonment -Though the matter was not strictly within their jurisdiction, the Committee expressed the opinion that a serious irregulanty had been disclosed and noted that the question of disciplinary action against the officer responsible would pursued in the Defence Department 24. Paragraph 25-Oierpayments of pensions - The Committee noted that the number of cases of overpayments of pensions had been substantially reduced and agreed that the special report on the subject might be discontinued 25. Paragraph 29—Establishment charges in the Military Engineer Services. It was explained that the increase in the establishment charges in 1936-37 was partly due to the initial expenditure on Quetta Reconstruction The Committee noted, however, that the percentage of establishment charges had remained in the neighbourhood of 24 for the last three years, and considered that prima facie this was hugb and called for investigation and report next year, 26. Paragraph 30—Surveyors of Il'orks - The Committee noted that the distribution of responsibility for internal check bad been materially affected in greater or less degree in different Commands by the introduction of the specialist cadre of Surveyors of Works, and that adequate arrangements to meet that situation were not yet perfected They desired that the Director of Audit, Defence Services, should submit a report on this matter next year 27 Paragraphs 10 and 11–Stoch verification - The Auditor General stated that he had no reason to question the system of stock venfication now in force; and this was accepted by the Committee 28. Paragraph 4-Central Abatlour and Cold Storage Schemes. --The Committee could not but regard the fact that the scheme had had to be aban. doned as unfortunate on account of both the waste of Government money involved and of the loss of facilities that would have been obtained both for the public and for the Army 29 Paragraph 15-appendur B --Pro forma account of expenluure on programme measures -It was noted that with the exhaustion of the frco balance in the Defence Reserve Fund, it was doubtful whether the Fund served any purpose other than that of an Equalisation Fund for projects that could not be completed within the year and for sums earmarked for certain specific p2 ·48 Appropriation Accounis. 30. Paragraph 27-Military Accountant Generals Certificate.--The Committee noted that the rules relating to issues of oil to consuming units and formations had now been clarified, and the Military Accountant General stated that from the year 1939-40 it would be possible to issue a complete certificate in respect of such issues. 31. Paragraph 28.--Variations between original appropriation and expenditure.--Attention was drawn to the considerable variations between the original appropriation and expenditure under the heads 11--Royal Indian Navy (Including Stores)' and '12-Quetta Reconstruction and it was explained that in the case of the R. I. N. this was due to the previous system of budgeting for a lapse to the Equalisation Fund which had now been discontinued. 32. Paragraphs 83 and 84.-Excesses due to new appointments. The Committee desired to reaffirm their view that increases of expenditure unprovided for in the budget which were avoidable should be postponed. Commercial Appendix. 33. Paragraph 4.--Grass Farms.---The Committee noted that ordinarily two-thirds of the average annual consumption of fodder was produced by the Farm Authorities and that one-third had to be purchased from contractors at higher rates. It was explained that in certain areas and at certain small stations grass farms would not be advantageous, but the Committee desired that the question whether the system of Military Grass Farms could not profitably be extended should be examined and that a report should be submitted next year. 34. Paragraphs 6, 7 and 8-Dairy Farms.-It was noted that milk, butter and cream were sold to the troops at concession rates considerably lower than the market prices; and the Committee desired that it should be examined whether this dairy produce was not being sold unduly cheaply and that a report on this point should be furnished next year. 35. Paragraph 14.- Medical Store Depots.--The Committee noted that the method of compiling the accounts of the Medical Store Depots was still under consideration and hoped that the form of accounts designed to show the net effect of the activities of the depots in connection with supplies and services rendered on payment by them to civil institutions would be settled in the course of the year. 36. Paragraph 25.---Clothing Factory. The Committec considered that it should be possible to test the actual profit made by the Clothing Factory as against the open market, and desired that a report on this matter should be submitted by the Financial Adviser, Military Finance next year. The Committee adjourned at 1-30 p.m. 48 ·APPENDICES. 69 ·50 APPEN Statement showing action taken or proposed to be taken on recom PART I.-Civil, Posts and Tele Year Serial of No. Report. Paragraph of Report or Proceedings. Recommendations or suggestions. Civil (Education, Health and Lands). 1 1935-36 10-R. 7-P. con- That Government should again examine the question whether the transfer of work nected with the Army, which has led to so large a reduction in the receipts of the Mathematical Instrument Office, was in the interests of India as a whole. 2 | 1935-36 7-P. That Government should consider the question of allowing the Mathematical Instrument Office to take work direct from the pulic. 3 1935-36 5-P. That the Committee should be informed whether any investigation has recently been undertaken with a view to improving the financial position of the Map Sales Dopartment. That Government should investigate whether it is necessary to hold such large stocks in the Photo Litho Office. 4 | 1935-36 6.P. 6 1935-36 8-P. . 6 1935-36 44-P. 7 | 1936-36 That Government should consider whether it is necessary to retain the post of Director of the Botanical Survey, now that Burma has been separated. That the Committee be supplied with further information regarding the staff maintained at Jeddah in connection with Indian pilgrims. Civil (Finance). That the advisability of imposing lump cuts should bo considered, especially in connection with certain Grants where there have been substan. tial savings in past years. That all the authoritics concerned should be ro. minded of tho principlo that even if budget pro. vision has originally been made under an incorrect unit, tho corresponding, expendituro should bo brought to account under that unit, unless there be strong reasons for a contrary 5.R. 48-P. 60-P. 6-P. (Military). .. 8 1935-36 O-R. 13-P. 8.R. (Military). course. 9 1935-36 O-R. 17.P. 22.P. That the Finance Department should, in consul. tation with tho Auditor-Goneral, experimont with a fow Grants in order to seo whether largor units of appropriation, both for budgeting and appro. priation report purposes, would not load to moro accurato estimating and indeed to economy.

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·52 Statement showing action taken or proposed to be taken on recom PART I.-Civil, Posts and Tele Year Serial of No. Report. Paragraph of Roport or Proceedings. Recommendations or suggestions. Civil (Finance)-contd. 10 1935-36 7-R. 48-P. 54-P. 101-P. That in order to avoid unnecessary supplemontary grants the latest figures of actuals should bo carefully studied immediately before a supple. mentary demand is submitted to the Legisla. ture. That the Finance Department should consider tho possibility of eliminating the capital head for expenditure on the commutation of pensions and also certain other minor capital heads. 11 ) 1935-36 8.R. 41-P. 84-P. 112.P. 12 1935-36 9-R. 43-P. That unless thero are very strong administrativo or financial reasons for continuing the existing system the agency function at present per. formed by the India Office on behalf of the Government of India should be transferred to the High Commissioner and the remaining cost of the India Office should be borne by His Majesty's Government. 13 1935-36 9.R. 40-P. That Government should consider whether the account maintained by the Secretary of Stato with the Bank of England could not be trans. ferred to the Reserve Bank, 14 1935-36 32-P. That the procedure adopted in connection with savings in Grant No, 27 should be investigat. ed. 15 | 1935-36 35-P. That the l'inance Dopartment should satisfy them. selves that tho amount which is placed at the disposal of the Secretary of Stato for secret service oxpendituro is still nocessary. That when a supplemontary grant is required to mcot only a part of the cost of a schemo tho Legislaturo should bo informed of the total 16 | 1935-36 49-P. cost. 17 1935-36 110-P. That Grant No. 70-Miscellaneous should, if pos. sible, bo ro-arranged in futuro years in order to bring together tho itons relating to cach Dopartment. 18 | 1935-36 1.P. That the proceduro adopted in connection with the acknowledgment of surronders slould bo investigated in order to ascertain whether tho responsibility of the various authorities concerned had been sufficiently clearly do. fined.

·53 mendations made by the Central Public Accounts Committee-contd. graphs, and Defence Services-contd. Action taken or proposed to be taken Instructions have been sued to the authorities concerned. In the budge mercial only for for es pen Lehed, and four other capita Demus 111 houses and Lightabupa) have been amalgamated with the corresponding revenue demands It is hoped that this question will shortly be investigated in London by s representative of the Government of India. The Ex)" Tk This will be done. The question Xá being examined, but in view of the accounting difficulties involved it was not considered practicable to introduce the proposed change in the Demand for 1938-39 111 be supplied to the Finance Department to enabie tre salvo w by the Secretary of State of the High Commissioner are not overlookech ·54 Statement showing action taken or proposed to be taken on recon PART I.-Civil, Posts and Tele Year Serial of No. Report. Paragraph of Report or Proceedings. Recommendations or suggestions. 19 | 1935-36 9.P. Ciril (Finance)-concld. That the legal difficulties, if any, with regard to the recovery of money due from an officer on pension should bo examined, and if necessary legislation should be undertaken to removo them. 20 1935-36 21 1935-36 15-R. .. 12-P. 13-P. 96-P. 15-R. 106-P. 9-R. (Military). 7-P. (dLilitary). 22 | 1935-36 6-R. 88-P. 23 | 1935-36 8-R. 72-P. 24 1935-36 65-P. 25 1935-36 That all the authoritics concerned should be reminded of tho importance of ensuring that the explanations given in the Appropriation Accounts are both accurate and intelligiblo. That the audit officers concerned should indicato in their Audit Reports which of the items in the lists of variations, ctc., they still regard as un. satisfactory after considering the explanations given by tho administrativo authorities. That Government should suggest means of improving the accuracy of budgeting for works expenditure while maintaining the principle of Parliamentary control. That any further expenditure on New Delhi, which is not of a clearly remunerativo character, should bo charged to rovenue and not to capital. That in futuro the Finance and other Departments should invariably obtain the opinion of the tech. nical Departnient before making budget provision for any works projects. That tho Government of India should insist on obtaining audited statements of the accounts of all institutions to which grants-in-aid aro paid. Civil (Central Board of Revenue). That it should be considered whether customs and other assignments and compensations should not be trcated ay deductions from rovcnuo instead of expenditurc. That tho Board should examino tho possibility of securing a reduction in expendituro correspond. ing with the reduction in tho output of the Opium Factory at Ghazipur. Ciril (Industrics and Labour). That the question of the allocation of occlesias. tical expenditure should be settled as carly as possible. 11-P. 20 1935-36 16-P. 27 | 1933-36 50-P. 28 1920.27 25-R. 1928-29 91.P. 1929-30 118.P. 1033-34 30.P. 1931-35 20.P. 1935.30 57.P.

·TOW4 w ..11 . + r = { 1 ở VN vào w..» -- Whe 4. " ** 4.4. . 1 - PR ****** ... f** TUT th A wette 44 *** Ivane wy. Phi ** * * * * * * * * 7. at 1. W • *** ****.***, + . ### -A# . . T4 . &P * * * www . 1 to 1. Rat ********* ·56 Statement showing action taken or proposed to be taken on recom PART I.-Civil, Posts and Year Serial of No. Report. Paragraph of Report or Proceedings. Recommendations or suggestions. Civil (Industries and Labour)-contd. 29 1932-33 1933-34 1934-35 1936-37 31-P. 14-R, 23-P. 62.P. That in viery of the large drop in the value of stores purchased from the Indian Stores Depart. ment, London, the question of amalgamating it with the Indian Stores Department should be considered. . 30 1034-35 1935-36 18-P. 11.R. and 55-P. That Government should cxamine the possibility of abolishing tho Hastings Street Press, and that in any caso the question of amalgamating the Hastings Street and Dharamtala Presses should be settled without further delay. 31 1935-36 73-P. 32 j 1935-36 6.R. 69-P. 116-P. That Government should examino the possibility of obtaining more revenue from tho Ajmer. Merwara irrigation schemes through a reduc. tion in the charges lovied from tho cultivators, That Government should submit a report noxt year on the question whether the staff employed in connection with capital works undertaken by the Central Public Works Dopartment and with the purchase of stores is not unnecessarily largo. That the question whether additional revenuo could be obtained from advertisements in the Indian Listener should be further considered. 33 1935-36 53-P. . 34 1935-36 50-P. That the index of publications issued from timo to time by the Central Publications Branch should bo supplied to Members of tho Legisla. turo. 35 1935-36 66-P. That it should bo considered whother the Civil Works Grant should not in futuro be confnod to works which aro actually under tho control of the Industrica and Labour Department, other items being included in the Grants relating to tho Dopartments or Administrations con. cerned. 36 1935-36 71.P. That a roport should bo submitted regarding tho adequncy of the present arrangerients for tho rovenuc and financial administration of Governinent lands and other properties in Now Delhi, 37 1935-36 89.P. That the Committeo should be informed of tho nature and extent of tho control which tho Con. troller of Stationery and Printing would oxerciso over the Privato Secretary's Press and tho Presses for which the Political Doportmont aro responsible.

·57 mendatrons made by the Central Public Accounts Committee-contd. Telegraphs, and Defence Services -contd. Action taken or proposed to be taken. Tho question to being considered. vou scheme is under separate consideration, with special reference to the altered financial position It has been decided that a reduction in water charges 18 not feasible, as Government have been advised that the existing rates are reasonable and the demand at those rates is also at the maximum Reports have been submitted to the Committee, (Appendices XI and XI-A). A certain number of non radio advertisements are now included in A I R Journals and this has resulted in an increase of revenue from adrertisements Agents have also been appointed for the sale of the publications at the chief commercial centres The proposal has been accepted. different Grants A report has been submitted to the Committee, (Appendix IX). Itt - Mysore and Hyderabad once a year.

·58 Statement showing action taken or proposed to be taken on recom PART I.-Civil, Posts and Tele Year Serial of No. Report. Paragraph of Report or Proceedings. Recommendations or suggestions. 38 1929-30 114-P. 1934-35 27-P. 1935-36 78-P. Civil (Foreign and Political). That the question of the incidence of Persian Gulf expenditure should be considered. 39 1935-36 76-P. That Government should examine the question whether the grants made to the Chiefs' Colleges are a legitimate charge on the revenues of the Central Government. 40 | 1935-36 12-R. 111-P. 41 1935-36 109-P. Civil (Commerce). That the financial position of the Vizagapatam Port should be thoroughly investigated without delay and that a comprehensive report on the subject should be submitted next year. That the authorities concerned should consider whethier it is necessary to maintain a special fund for replacements and additions as well as a dcpro. ciation fund and a general reservo fund for tho Lighthouses and Lightships. Civil (Home). That Government should consider the desirability of annexing to cach of the Area Demands (such as those relating to Delhi and Ajmer-Merwara) a pro forma account showing the expendituro and receipts (of a provincial character) in the year in question. 42 1935-36 115.P. 131935-36 1-R. 34.P. Posts and Telegraphs. That the Accountant-General should examino tho possibility of climinating certain suspenso accounts. # 1935-36 99-P. . That the authorities concerned should consider tho possibility of showing the capital expendituro gross and recording tho recoveries or credits scparately or as receipts and that they should in any case try to deviso means of presenting the Ac. counts and Demands relating to tho Posts and Telegraphs Department in a simpler und moro intelligible form. 1.R. 3-R. -15 1030-31 1931-32 1932-33 1933-31 1931.35 Defence Services. That the rovision of tho Army Regulations be com. pleted as soon as possible. 3-R. and Military Accounts Committee, 1033.30 2.R. and

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·60 Statement showing action taken or proposed to be taken on recom PART I.-Civil, Posts and Serial No. Recommendations or suggestions. Yoar of Report. Paragraph of Report or Proceedings. Defence Services-contd. 40 1932-33 1933-34 1935-36 33-P. 11.P. 3.P. Military Accounts Committee. That a further report be submitted next year regarding the scheme for the training of Public Works Department Accountants in work connected with the Military Engineer Services. That a further report be submitted next year regard. ing the overstocking of Royal Air Force stores. 47 1934-35 18 and 19-P. 18-P. Military Accounts Committee. 1935-36 48 1934-35 21.P. Military Accounts 5-P. Committee. 1935-36 49 1935-36 4-R. Military Accounts Committee. 24-P. That further information be supplied regarding the actual expenditure involved in the payment to military officers of compensation for inferior quarters and regarding the effects of tho "zoning system. That the actuals of past years under “ Expenditure in England on the purchase and sale of stores, equipment and animals" should be carefully examined with a view to the possibility of a reduce tion in future budget estimates. That acquittal by a court of law should not necessarily be regarded as cxempting a Government servant from suitablo departmental action. That a further report be submitted next year regard. ing the measures taken to prevent a rusl of expenditure in the nionth of March, 50 | 1935-36 5-R. Military Accounts Committee. 12-P. 61 : 1935-36 6-R. Military Accounts Committee. 28-P. 52 1935-36 14.P. Military Accounts Committee. That a further report bo submitted next year regarding the disposal of surplus and obsoleto stores. 53 | 1935-36 37.P. Military Accounts Committee. That a report be submitted next year regarding the adequacy of the methods of charging the War Office with the pay of officers serving with a lent unit.

·01 nilations make by the Central Pulle loround Curmulice-coocki. graphs, anul Defence Services.--contd. Istwa lulea er ford tu le tyler A DOLE Lua loro vabasted to the Cemeter. (graulis, X1111) A Dul Laleen (urtubal (Arix XIX). A meronta ban leve a badal (Arena XI) The trompeadatan bay lena LouLi to ibo Dolice of the malitating suthorities, and every cachbu Leo made to rretnct the futiwa in the budget for 1039-39 to actoal requiropeale. The who sedly tho Defro Authorille report on do abject is nosiainel lontapub 130 of tho Approprution Accous le of the Ik roce verrir fug 1430-37 A bemutaden har trea (urtical. (Appeadis XXII) A note de boca subroutal. (Appenukss XXIII)

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·1 03 -- APPEYDDY II. Susionsent comparing arpenditure with grants for 1936-37. TO Grunt sr Xembrand name of Crust or Artropriла. Eartallur, Eapcoditure comutod with Grunt or appropriatko. Lautan Vore than frantof frental. Appropriatwa. le Ia. 1 91.73,000 . 02.37.053 15,15.759 1.13,902 1,761 5,35,000 1.73.15 XI.11.11 W: 59 21.3.9 207 :. 64.05,000 13.39.107 61,17,127 13.46.GOJ 0,127 J.cus 10.737 7, d.ow 1.18, 27.03.263 7,18,615 97 4.78.000 4.53.203 :,17,025 2.703 13 40,us 17.39.000 12.010 1998,745 (9.810 200 RET TAITASEPT 1 Accor XAXT GLXL CEXTRAL REDTE-COM. 16 Castoms Voce 5 fotot: 17. TAIM OD IDOUB: Vuod untolat 18.6.11 Votre Samid : 10. Opama's Votal Yoo-luded: - Escut Santo : . Sumo Voir Yonidan i. Faret: Votou on-tutcl Impion El Chare. Nio Roteaa.1 Votal Yomraded : e Intettat 00 Ordinary Debt, do: Votod Yon-tated Ba Interest on Nurellanoods Olligions : Vota! ocuted 1. HAFT, Hoorhold sod ALIOFACH of the Color nor General: Volod Yon-culed 28. Elocutito Council Voted sonroed &.33.000 1,77.00 3,81,456 1.70.052 8,314 1.215 4,07,00) 2.w.cvo 12.03.466 7,06,686 3.06.226 21.09,000 -6,97,000 21,30,345 --$31.004 8,60S 1,57.261 71,52.000 21,74,00,337 21,31,712 11.71,52,793 20,888 2,10,594 18,320 4,60,000 10,51,833 $,01,610 10,50,667 27,845 1,149,000 4.79,170 1,21,165 4,80,123 966 ·04 Expenditure as compared with Grant or Appropriation. Expenditure. Less than More than granted. granted. Final Grant ог Appropriation. Number and name of Grant or Appropriation. Rs. Rs. Rs. Rs. BY TIE : 1,43,000 3,700 1,40,753 3,240 2,247 460 .. 8,68,000 71,910 8,26,859 67,595 41,141 4,315 TE :: . 8,120 9,77,900 3,93,500 9,69,780 3,93,816 316 5,168 7,92,900 14,87,339 7,98,368 14,81,296 3,0:13 REPORT PREPARED ACCOUNTANT GEXERAL, CENTRAL REVENUES.—contd. 29. Council of Stato : Voted Non-voted 30. Legislative Assembly and Legislative Assombly Department: Voted Von-t'oted : 31. Foreign and political Department : Voted Non.voted 32. Homo Department: Voted Non-zoted 33. Public Service Commisgion : Voted Non-zoled : 34. Legislativo Departmont: Voted Non-zoted: 35. Department of Educa. tion, Health and Lands: Voted Non-zolcd : 30. Finance Departnicnt : Voted Von-zoleu : 38. Commerco Department : Voted Von-zolcu : 39. Dolence Departinent : Voted Von.ioled : 40. Dopartment of Industries and Labour : Voted Von-loled : 41. Central Board of Ror. 2,02,000 2,13,681 2,01,093 2,13,668 907 13 3,33,000 1,87,900 3,31,116 1,87,500 1,884 400 6,12,000 2,02,250 5,84,500 2,01,794 27,494 156 630 10,66,000 2,15,603 10,65,470 2,10,676 73 4,13,000 1,33,678 4,12,272 1,33,372 728 306 4,20,000 87,754 3,95,400 88,207 29,000 53. 5,17,000 1,50,712 5,23,671 1,56,758 23,326 enuo: 3,145 . 2,08,000 1,34,333 1,11,145 1,34,294 89 Voted Yun-roled : 42. Payments to Provincial Gorcmments, ote, : Voted Son.doled : 9,755 1,50 000 60,200 1,53,755 66,303 1024 ·65 Yomber and Dame of Graat or Appropriation. Fast Great or Appropriation Expenditure, Erpenditure as compared mith Grant or Appropriation Let than More than granted granted WW Ra. Rs. Rs. BXPORT PREPARED BY TRE ACCOUNTANT CENERAL, CESTRU. REVENUES conid. 43. Audit Voted Non-uoled. 44 Administration of Justice : Voted 1,00,33,000 7.79,000 98,97,867 7,77,395 1,85,133 1,805 69,000 67,747 1,253 . 1,83,737 2,81,000 77,400 2,737 - 3,154 14,66,000 8,78.230 14,70,229 8,80,811 4.229 2,581 33,722 9,75,000 20,216 0,41,278 20,216 23,24,1700 3,30,800 19,59,456 3,45,809 1,64,544 4,991 20,06,000 85,300 19,40,989 84,900 65,011 400 2,10,000 2,24,000 2,96,067 2,20,069 13,933 3,931 48. Police : Voted Non voted 18. Porta and Pilotage : Voted Yon-coled. 47. Lighthouses and Light. hipe. Voted L'on voted 18. Surrey of India Voted Yon voled 19. Meteorology Voted Von-voted 50 Geological Survey : Voted Non rated SL. Botamcal Survey Voted Nonicles 62. Zoological Survey: Voted Non-coded : 83. Archeology Voted non told. B. Mines : Voted Yon-poled, $5 Other Scientific Depart ments : Voted 68. Edaraljon: Yoted Non would 57, Medical Services: Yoted Non-uoled 3,666 1,29,000 32,000 1,32,685 31,033 907 95,000 46,903 95,135 46,942 135 39 22,397 12,91,000 1,07,300 11,68,603 1,00,853 8,762 .. 1,27,000 95,131 1,33,762 34,340 291 DED 2,56,000 2,65,750 6,42,000 34,128 6,41,692 32,939 378 1,499 8,854 8,97,000 222,279 6.90,146 23,052 774 ·66 Expenditure as comparod with Grant or Appropriation. Final Grant or Expendituro. Number and name of Grant or Appropriation. Appropriation. Less than granted. More than granted. Rs. Rs. Rs. Rs. THE REPORT PREPARED BY ACCOUNTAXT GENERAL, CENTRAL REVENUES.--contd. 7,04,000 1,92,1441 7,16,548 1,90,788 47.452 1,653 30,43,000 59,809 20,20,037 59.703 10,22,963 106 58. Public Health : Voted Non-toted : 59. Agriculture : Voted Non-loted : 60. Imperial Council of Agri. cultural Research Pe. partment: Voted Non-roled : 60.A. Scheme for the Im. provenient of Agricul. tural Marketing in India : Voted 1,692 8,75,000 1,12,618 8,73,408 1,12,944 326 4,60,000 4,15,157 14,543 01. Civil vices : Ve inary Ser Voted Non-voted : 7,32,000 34,600 6,76,211 34,2:11 55,789 359 02. Industries : Voted Non-toled : 8,37,000 2,315 73,403 7,63,597 2,315 22,45,000 12,000 1,71,639 20,73,461 12,009 9 on 1,000 1,000 03. Aviation : Voted Non-roled : 03-B. Espendituro tho Development of Civil Aviation mct from tho Fund: Voted 01. Commercial Intelligenco and Statistics : Voted Von-coted : 05. Census: Voted 00. Emigration Internal: Voted Non-rolad: 87. Emigration-External : Voted 5,38,000 67,100 5,03,511 65,508 31,459 1,592 1,000 1,886 880 15,000 2,100 627 141,-173 2,177 77 1,93,000 1.92.008 03 2.902 ·67 Nomber and name of Grant or appropriation. Final Grant Appropriation Expenditure Expenditure as compared With Grant or Appropriation. Less than More than granted granted Ro Rs Rs Rs. 1,27,499 3,151 1,501 1,939 12,62,104 17,716 12,896 1 1,000 20,38,003 7,05,703 Voted 16,997 2,297 REPORT PREPARED BY THE ACCOUNTANT GENERAL CENTRAL REVENUES ---Conid. 69. Joint Stock Companies : Voted 1,29,000 Non Loted 7,099 69. Miscellaneous Departments. Voted 12,75,000 Yon voted 17,717 89-B Expenditure on the Development of Broad. casting met from the Fund Voted 1,000 70. Indian Stores Department: Voted 20,55,000 Non-voted 1,08,000 71. Currency 18,42,000 Non-uote 63, 160 72. Mint Voted 18,81,000 Non-coted 84,900 73. Civil Works Voted 2,39,95.000 Non-voted 14.98,000 74 Superannuation Allow. ances Rod Pensions Voted 1,15,36,000 Non voted. 1,77,34,000 76. Stationery and Printing : Voted 37,55,000 Non-roted 40,417 76 Micellaneous Voted 8,15,000 Non-voted 27,39,729 70-4. Expenditure trenched personnel charged to Rovende : Voted 20,000 Non-coled. Siuscellaneous Adjust ments between the Central and Provincial Governments : Voted 3,65,14,000 Non-coted. 1,01,43,376 17,88,127 68,591 53,873 17,82,019 83.173 432 98,981 1,727 .. 2,34,94,629 14,52,743 5,00,371 45.257 1,10,40,835 1,76,78,809 5,15,165 1,15,251 37,97,311 40,680 42,311 263 On Re. 8,12,114 27,76,560 2,886 23,169 19,874 7 126 7 3,69,31,399 1,01,43,376 24,17,39 ·68 Expenditure as compared with Grant or Appropriation. Number and name of Grant or Appropriation. Final Grant or Expenditure. Appropriation. Less than granted. More than granted. Rs. Rs. Rs. Rs. 99,660 1,49,00,000 3,20,72,977 1,49,99,660 3,17,30,819 3,42,158 66,31,000 43,96,200 56,08,284 43,47,699 10,22,716 48,501 65,89,000 2,53,000 54,22,597 2,55,995 11,66,403 2,005 27 16,22,000 1,05,115 16,22,027 1,03,773 1,342 26,76,000 2,05,725 27,04,986 2,06,616 28,988 391 22 4,12,000 6,65.210 4,11,978 6,68,251 3,041 REPORT PREPARED BY TIE ACCOUNTANT GENERAL, CENTRAL REVEYUES.--conld. 77. Refunds Voted Nan-voted 79. Baluchistan : Voted Non-voted : 80. Delhi: Voted Non-coted: 81. Ajmer-Jerwara : Voted Non-roted 82. Andamans and Nicobar Islands : Voted Non.voted : 83. Rajputana : Voted Non-roled : 8-1. Central India : Voted Non-coled 85. Hyderabad : Voted Von-rolcd : 85-A. Aden: Voted Non-roted : 80. Expendituro in England- Secretary of Stato for India : Voted Von-roled : 87, Expenditure in England- High Commissioner for India : Voted Von-roled : Ecclesiastical: Yon.coled. Political: Non voted 3,29,000 6,01,0:1 3,15,529 5,97,427 13,171 3,614 2,45,000 5,80,283 2,18,277 5,35,801 20,723 5,518 0,25,000 3,78,300 0,10,388 3,70,609 14,612 7,691 .. 21,33,000 17,33,000 20,60,00+ 17,08,551 72,930 21,4:19 ... 20,00,000 23,03,000 25,73,707 28,39,513 92,293 23,197 :: 28,53,500 28,35,743 22,757 . 1,25,30,086 1,33,28,233 12,93,146 1,95,23,002 1,3-1,35,082 Frontier Watch and Ward : Won.roled Toritorial and Political Pensions : V01.10 32,920 . 29,89,010 29,37,67ū 51,371 ..

·lay: C3 Xumlefant narre of Crane up.syriatus. Final Greas Ezfclitere Aj projekatwa. Esqualiter e coca Satb nat or 17 laua Land then stand chick Keruar FAEPARED BY THE Acontext GESELL Catul Rompin wild. Disglain : Vos tutel Fernst Status .Igory: Capulet Outlay 00 B onded corny lyukar med 13,40.000 21.01.000 13,33,147 191,165 2.002 1,00 1.000 . Furtat Coulait 9. Ir a. Turke cart har to loroue). Votre - Capital Outlay mauf lerrultun! Imporement and lo wwnat $1 Currency Cagatel Outlay: Total 4. Caputal trutlay - faison lira buri Total on low 3,15%) 10.11.09 2.000 10,130356 -1.03.007 646 ما ماعندي لممار) لما ? -;ܙܚܶܫܙܬܕܚܐ ܢܩܙܘܢܪܬ 1,24.018 0,23,00 2.07,673 31.23, AV 1832.00 1,14,575 finne Wund s Cucamutat W. Tro. 04 Hunt ut tuld. w Lamallure 09 I kennd charged to carutal Jone :. A Cathy Jua) i fulatellone Wrance Trend .UTADOS Leerleg Isterrel: Putet Ronat ALFABIO SY TYR hutat Gusta I-T* AND THAT- 2. Lalu Isso Tela footjetrovali ..antud Lagatal asulas .. Italian Mind Tobago (Schnupir**). 41.04 +0.183 29,64,100 M.KWA 4:04 123 22. Mau 1,01,77 4.4.13 314441:7 10 5.4. 1991.01.) 26.1A IQL440) 5472 9. LAN 6:5 24:1, ·70 Expenditure as compared with Grant or Appropriation. Number and name of Grant or Appropriation. Final Grant or Expenditure. Appropriation. Less than granted. More than granted. Rs. Rs. Rs. Rs. 15,213 8,80,000 4,88,000 8,95,213 4,87,903 97 .. 14,50,000 2,62,000 14,41,864 2,61,582 8,136 418 : : 12,87,000 14,83,000 12,64,903 14,65,554 22,097 17,4.16 15,35,000 18,60,032 3,25,032 3,48,68,000 3,52,76,927 4,08,927 8,67,00,000 32,05,000 7,96,32,435 32,00,31+ 70,67,583 1,686 APPROPRIATION ACCOUNTS PREPARED BY THE CHIEF COMMISSIONER, RAILWAYS.- 1. Revenuc—Railway Board : Voted Von-voted : 2. Revenue-Audit : Voted Non-roted : 3. Revenuc-Jliscellaneous Expenditure : Voted Von-uoted : 4. Revenue-Refunds : Voted 5. Revenuo—Payments to Indian States and Companies : Voted 6.A. Revenue-Vorking Expcnscs--Maintenance of Structural Works : Voted Von-roted : 0-B. RevenuomWorking Es. penses-Maintenance and Supply of Locomotivo Power: Voted Yon-voled : 8-C. Rovenue_Working Expenses-laintenanco of Carriago and Wagon Stock: Voted Non-coled 0-D. Revenue. Working Es. penses-Maintenanco of Ferry Steamers and Harbours : Voted Von-zoled : 0-E. RovcnucWorking Expenses-Expenses of Traffic Deparment: Voted Yon-coted 0.F. Rorcnuo Working Ex. penset-Expenses of General Departacnts: Voted Von-caled : 16,84,00,000 16,01,000 10,77,32,027 15,9-1,873 6,67,973 6,127 39,21,298 6,10,00,000 3,26,000 5,79,78,702 8,35,007 9,007 5,104- 28,75,000 23,000 28,80,164 27,411 539 10,87,23,000 17,79,000 10,83,53,774 17,66,181 3,71,226 12,819 *: 4,03,25,000 23,04,000 2,17,101 4,03,07,590 23.04,776 *976 ·71 Subsmaalume of Gract or Aptopriatka. Yanal Grant or diperpristka Eifeaditure Eapendo cosogar Ib Cnnt sarsmuoto Lauttaa More than TL IL Arturlarios .Iccorxa FEITARID TUE CAIRY CUMMINS, KALVAT-mid 40, llenraum-Working Fu Tieslucellaneous Es. Yotal 4,34,75.000 13.67.00 4,13.41.04 Yon mird 61. Herenulurking is TM-Fleire Artice Department. Vot . 1,11,916 13.17.503 9 12: .- 1.19.23.00 1.16,37,310 *.000 3.47,6 = Yow-eded 7. Bermuo- 134 relation to INSI Rrrre tut Votret A Revenue-lotermi Charge: Vutol 95,707 126 120 12,13,013 11.00 Joe wod. 36.000 30,10,75.00 2017 2:37 37,11 65 65.2 Tromptary withdrale IND Irge XD Kartt. Fus: oral II. CalabYmw Constru 1,46,44.020) 144410 Yound 3,910V) 160 12 pre Lars Waist Vein! 6 202.alow AILA 4:3 Imbarra chebralerens LAVA 1401,3:5 2.II JLU ·72 Expendituro as compared with Grant or Appropriation. Number and name of Grant or appropriation. Final Grant Or Expenditure. Appropriation. Less than granted. More than granted. Rs. Rs. Rs. Rs. 35,76,60,000 35,90,50,000 13,90,000 .. 6.25,42,000 6,23,35,000 2,07,000 APPROPRIITION ACCOUNTS PREPARED BY TIL FIXAxcial ADVISER, BIILIT RY TINANCE.* Defence Services—Effective- India-Non-rote Defence Services—Effective- England Non-voted Defence Services--Non. effective-India-Nontotal Defence Services-voneffective-England-Non. roled Defence Rescrue Fund-Yon. tolcd 3,65,52,000 3,68,36,000 2,3-4,000 4,63,83,000 4,68,27,000 56,000 . 26,00,000 16,78,000 9,22,000 1,22,21,48,800 1,11,58,76,191(A) 11,07,17,180 44,74,671 Total ŞVoted Non-tolcd 1,10,16,26,812 1,10,13,99,7-10(B) 32,90,153 35,63,087 Grand Total 2,32,07,75,012 2,22,07,75,937 11,10,37,333 80,37,658 * The figures are gross. (A) This amount is less than that given in Account No. 12 of the Financo and Revenue Accounts of the Government of India for the year 1936-37 by Re. 1 which is due to rounding. (B) This amount is bioro than that viven in Account No. 12 of the l'inance and Revenue. Accounts of the Government India, for the year 1936-37 by Rs. 429 which is duo to rounding 11101Find ·73 APPENDIX DIL LITTEX TEOX THE ICDITOR GENERAL or INDIA, TO THE SECRETARY TU THIE GOILASENT UP IDIA, FixascE DETARTWEST, XO 213-ler i1-37, DATED) THE 318T JIAY 19384 SLBLCT :-.Ippropriation Icounts (trul) 197-37 and the fundit Riepunt. 1938 With reference to paragraph 13 (9) of the Gover.mc. of India (Corums Bere ment and Transitory Provsson), Onter, 196 and parantaph 13 of the Government of India, Fiume Depurinant bitter X D) **** R18,37, datel the 6th January 1937, I have the honour to fun-imut tar with two copies of the appropriatun lccounts of the Central Comertuant (Civil) for the year 1936-37 and the lulit Hepurt, 19.24, tetter with to cupuyers of the Comnienial Ippendix to their durunirnts, fine free lotilir lacuuntant General, Central Resenues, fur sulm to thin Publar Accounta Comunittee and for flere awry action be the Governor (imralia Council ... Tuo cupits of the accounts of greipts and dubur tents of thirr. retary of State and the High Commissoner for indus on whalf of the feutral Goveriment, under the heads other than thuy relating to Milean Sia, for the year 1934-37, together with two cope of the relevant .Apzingiran decounts, anul thon forts thetwin, prepared by the Tulator of Indian llege counts, aro al futuanded 3. The appropriatun lcrounts and the lulit Pepwist of the lixountact Conrral, Ceatral Revenues, lengte ber with the plantain: fum usnul.lccounta, lave, as usual, txinesamined in detail uueles tilstarur 13043 and I find them grills to loan ons The als punye nxulary clawsustion I lose to the relako to purgtapha 1 tline Install Cuanxols under Frontier Watch and land art of the propria Arruunts and Report The cum 31 was drafted in the namestiliran that the solumenhould not loonusulat uitb bir detail of them .fuittart and du film impulante I am popunny .upple...'45 Debatt 2. will aupply instances of the irroularities in size tal de la verdall the I'lblue .Iccounts Committee to deal futwalls with thus nuttet at threr Julr ***.n. The state of alund cho tlir muncula on Svw parhapus tho nxust unportasit in dual naller brought to liker in th Reports ·74 LETTER FROM THE AUDITOR GENERAL OF INDIA, TO THE FINANCE DEPARTMENT GOVERNMENT OF INDIA, No. T. 167-REP./9-38, DATED THE 20TH PLAY 1938. SUBJECT :- Appropriation Accounts (Posts and Telegraphs Department), 1936-37 and the Audit Report, 1938. With reference to paragraph 13 (1) () of the Government of India (Audit and Accounts) Order, 1936, and paragraph 13 (2) of the Government of India (Commencement and Transitory Provisions) Order, 1936, and paragraph 13 of the Government of India, Finance Department, letter No. D./29-Ref./37, dated the Sth January 1937, I have the honour to transmit herewith two copies of the Appropriation Accounts of the Posts and Telegraphs Department for the year 1936-37 and the Audit Report, 1938, issued by the Accountant General, Posts and Telegraphs, for submission to the Committee on Public Accounts, and for necessary action by the Governor General in Council. 2. The Approriation Accounts and the Audit Report, have, as usual, been subjected to a detailed examination in my office and I have satisfied myself that they are generally in order. I have no supplementary comments of my own to add. LETTER FROJI THE AUDITOR GENERAL OF INDIA, TO THE FINANCE DEPART- MENT GOVERNMENT OF INDIA, No. T. 228-REP./8-38, DATED THE 28TH MAY 1938. SUBJECT : -1ppropriation accounts (Defence Services), 1936-37 and the sudit, Report, 1938. I have the honour to forward herewith for necessary action two copies of the Appropriation Accounts of the Defence Services for the year 1936-37 prepared by the Financial Adviser, Military Finance, together with two copies of the Audit Report, 1938, prepared by the Director of Audit, Defence Services. 2. I also transmit herewith two copies of the accounts of receipts and disbursements of the Secretary of State and the High Commissioner for India on account of Defence Services for the year 1936-37, together with two copies of the relevant Appropriation Accounts, and the Reports thereon prepared by the Auditor of Indian Home Accounts. 3. It is understood that these documents will, according to the normal procedure, be subjected to a preliminary examination by the Military Accounts Committee before being presented to the Public Accounts Committee. 1. The Appropriation Accounts and the Audit Report have, as usual, been subjected to a detailed examination in my office, and I have satisfied myself that they are generally in order. I have no supplementary comments of my own to add.

·75 LETTER FROM THE AUDITOR GENERAL OT Labu, TO THE FISANCE Deratt. WENT GOVERNMENT OF Ixpia, Yo T 493-REP 8-33, DATED THE Piru JUNE 1938. SUBJECT :-ippropriation .fccounts (Defense Scarxa) 1966-37 and the two Rezort 1938 In continuation of my letter No. T. 93-Rep 3-38, dated the day 1933. furwanlıng copies of the Accounts and Report menljuned above, I baro the buhou to fursand herewith fur neiessary actiun twu espurs of the Conmercial .Ippendix to the Appropriatan lccounts of the Defearr Services, for the year 1936-37 and the Report the va of the Dincur of ludit Difenoc Services 2. There is nothing in the Financial Iduxr's tetrw is in the report of the Director of lucht, Defence Services, which I dearm w qualift the results of the examination of these conubercul acounts 49 Le rezand as satisfactory. 16

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·77 APPENDIX IV. Xota on the transfer of work connected with the Army trom the Mathematical Instrument Once. The l'ublic Arcounts Comnuttee as their meeting held on the 20th Julr 1137, roummered that Government shuud again cxamine the quration Lethro the transfer of work connected with the Irint which hallel tonlarat omduction in the receipts of thic Mathematrullastrument Oilice of the survey of India was in the intenta of India 19 a whole In un paction was male of the latticmctical Instrument office this spring and the cat estent df its function along with the degre to which trwirt could uwfulls and minorally le muule of it by the army authontira has lren riamian It u intervin) which wms further infomation has been scurt, to hold a Conference of the Departmenta concemnt to determine the last course of actua

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·79 APPENDIX Y. OmcE JEMORANDUM PROX Tue DerABTXENT OF EurCATION TILALTI AD LSDs, No. P. 18-23,34- P., DATUD SIXLA, THE IGTH MAY 1934 SeDilTathematical Instrument Office Question of allerding y lo til murk dired from public .t ils nerting build on the 26th Juli 1937, the l'ullic adcruuntsfon.cutter rested that the Guseminent of Itulua kouli corunder the quriwn whether the atlematical Instrument Office of the Suntry of Inlu bould but I frontfal to the work direct from the public sea of that insulin rain ictu cumpstation to me extent with priate fuma .. The Curemnant of India lale can fulls i Xamnited this qurtma ja costsultatus with thic Suneyor General of India but have culture to the concluson that the departure numestel is nether prouticalile norddevralulr The Gios chaunt of India presume that the summistros dind tut contemplate this awal panuit of public patronage in coinsetition with the tra le but rather thir an rpit- Anor of indivalul muesli which numbers of the public might nabe 71. (nt rourno rould not in the Goschinent of India's view linals contemplatel, as it would depart widely froin onlinary practice aroš the f**tuntil the Matbematical Instrument Odlice as a nice Department in trand for the Kruml, such ricourse by the publicabould be limited to the rear of urrunent et apparatus which cannut bp dene elsewhere in India It alwulet inte Q1cf, to undertalca only when the Office is not wurking to capita Guneminent work. If such a restriction with not obrned thirspor of work Lich the public would be likely to offer to the Jatketatu al listrutiarrat Oy: would be largely that which the instrument trade svalt alts carry out Sciently, 9. the one thaul of bixwulars, and the memular acceptanar of such wurk by thic Mathematical Instrument for wouli kad A2+! to the rairing of the general quration mintained aluse 3. It has been declad, then fure, that the point practice shoulderslanur ic, to dlathematical Instument Office will undertale certain xrial clawsuf wysk lurposate and local Ldses at terunrralise talrs when the 1)... u wczone to capacity on livretumeat work

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·8) APPENDIX VL Nota on Map Sule. The Public Secounts Committee at their incetiriz held on the rich July, 1337, Ahad whether any investigation 3] fueratly been unertaken with vow to improving the financial justion of the Map Sales Department ... This has bern under consideration for the time This is a very laro abyact wlascha bas been consulend from time to titue in the past without bewht, ans system of sustained effort to promote males kara lyra bitkerto folia li must be understood that churts to chate a market and intraku mla wul the niwlies involle kytic citra rajenditur It is the cav, Luneiro, last a large palautial market rists among the general public in India and to felrauc deniable from Kiker in this market would probably nule in a cei fan to the Central Goverinent J. In consultation with the Sursesor tieneral, this matter hae bycholy pune into unler the following heuls (0) Idiertastat. (1) Personal contact (...) Induction in the sale pric of maape (it).gencies () Odlice reorgauutin 1. () lwie. --Systemetic altcrtisement is likely to start within the trat lew muatka Experience in the just has shown that rien sur une paper mliertisement for *zacific maps las always prelucrd unelte resulta Other actiun under thus licand culcas the prejuraws of bon humsal fallen, display by pelet or otherwis in Talwas stations, tralaurant rank perrt, cica stress, etc. (1) Wre. The experiment of a travelling Aluan us eruirt step'. lain. The object of this fuust would lie toeriste a Inowlelor ulterieur transpo, the links of majs, nwuntin's ri valable in thr wurin Тъ.. wars coull act alm as an inequius of lwal agilaire (4) are, Raluctwns and concession rates for all maju mult to las pale Warnal institutionis bare kon broupat lo funr math for) calaur. Tlas matter is unirs alrtalava ar bir qurinn umiste bambinganisica legal in Bulus will be studiming the owl tratadt wristber I WANY -- the market cual se wall prolult la termen lutte tep finurl asid luc 0:due to tie up trial was an idealne with Jrjeet Tlie quralaun ufanislle et de restwa w lindrer suomekro а.

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·83 APPENDIX VIL Note on Photo Litho Stock The Public .Iccounts Committee at their meeting held on the 26th Jals. 1937, draised that the following queuuns le clanunod.-- (c) The necessity for and the possible reduction in tho2} scan' teserre of storcs maintainod in the Photo Litho 0:licc (%) The need for so many imported stores and whether moro atorcs of Indian production could Dot be used 2. These points *ero gone into with the Sunicor General azul hus viliccts at Calcutta with the following result. () above. The actual supply carrier is not years, but really !!! Thu is a consequence of the fact that the Sunry of lola inals, which are frefused as a wlule, and hasc, the afore, to be inule up after the fieldsson u Olet, are generally deaqutchol in August and the stunts recret lorsworn January and June, ruuch the greater part lning taken to stock lista in January, February and March, ie, at the tune the fuls are clochel a whole year: iwleat happens to be on the luks. If the liew alutis ucrfuria in pril anal Nay, the balances would be less by a yrar's supply Stepw are being taken as an experimental turssure to baxo the demand for 1901-10 on the actual indents to be submitted during 1933-39. the spicata lear ioz the instruction that the storts should amie in Irxiu bine Has and July, 1939. Tie D, G.ISD, una ashed withirt le has an objectiva wile change propuserl. 3. P. I. 0. Equipment and spare parts Thirn das leon cranunod ani dosled into the munimuin numbers tejuni () fur normal replacements, (1) fur eruergency a placenc als ken the more of support to likely to be closed for curable Jo Thuis The P... 0. must carry a supply of the first catentina Tlc jurch box. oser, form a small progation of the hersexpendable sluiten 1 laran item Zusc Mates. II. Ach from this that to notarr ture of cline lais barullal a different men of pilates uind curvjuesith Lures primul Ilary slalu then gurmal bas to le redd for life a lireratik at im Frain in hape which will be solualli abiele 11.10 Wir free for temanit a dat nilachines I furtarr cin unutann is that ithettu tw scruu: I was born tsiradile Gullre « plats in actual um. This cutest polistiro dopis sidabra 06:47 the image of the maji durtam, etc The sulit means ihre KWIET of such plict. Ifales are taken into a sursais, the ratos ad salu is ret to place is us ut very struall, utilr 111'. 1. lugn Vect owsikon. --The Bini ulusta alwa tu kwend اعلة: مهر شد. لسميه ع م : لا ادا نماشا با مدا ما را ·84 turn-over) 78 reams of Japanese paper and 250 reams of linen backed paper, total value nearly Rs. 30,000. This paper was laid in for the Army who require a constant supply of large numbers of maps for mobilization stocks (for which they pay on delivery) and as a reserve for war. The linen-backed paper is obsolescent partly on account of the installation of a map mounting machine, which backs the maps with cloth after printing, and partly on account of the probable introduction of a new type of paper which does not require a clothbacking. The use of this latter paper is under consideration by the Army but protracted trial is necessary and no decision can be taken in a hurry. In the meantime, the existing stocks of these papers must continue to be held. They are in good condition and if not required for military purposes, will be gradually disposed of in printing other classes of maps or by sale. The remaining stocks of papers are regularly turned over and cannot be considered at all excessive in view of the immense amount of paper required at the outset in war, and the impossibility of obtaining suitable map printing paper in India. One year's war supply of paper for field units alone is valued at betwcen 1 and 2 lakhs of rupees, and at the same time the consumption in the Calcutta and Dehra Dun reproducing offices will rise much above the normal. In the 1914-18 war, our numerous indents were complied with from 9 to 14 months later than the nornial. It is considered therefore that the present stocks are quite likely to be within the danger limit. It may be pointed out that paper forms by far the largest item in the P.L.O. Store Account amounting as it does to 72 per cent. of the total (in 1935-36*). 5. (6) above. Purchase in India. It is of the greatest interest to obtain as many as possible of the stores in India, instead of importing them, and thereby to avoid the risk of running short when the demand increases and the supply is cut off as in time of war. Endenvours have ben made and will continue to be made to obtain the stores through the Indian Stores Department in India and by local purchase. Of recent years a number of chemicals have been obtained in India, which previously had to be imported. Local purchase is, however, of little value to India and uneconomical to Government if the articles purchased are imported by a trading firm and not manufactured in India. It has in any case been found difficult to induce importers to enter into contracts in advance and it is feared that they do not hold adequate stocks even for normal requirements still less for times of emergency. Very few (less than 9%) of the stores required in the Photo-Litho Office are actually manufactured in India. * 70-5% in 1038.37.

·8.5 APPENDIX VII. Salmoni showing the staf employed in the Indian Pilenmesine il the Bntish lojalson, Jellrh. Ifndin lire Crasu! manent) I lot Ilarian Orbaik 1 Col Marina krk : Wrartigers Ibnulary infly I Indian Netical Oficer 2 Ini Dingen Irian Denart Temps I Uruari Prenauti I forgot Bandea thc alueestablishments, annual sanctions have en derinli to the catertainment of the following lamwrary medical cutablishukrito in unaitwa mth the Ilaj Pilgrimage work for myears in the jant did the minuten lera repeated for the Ilaj Plzning of 1937-33 als) I Ixtor (Sula mutant Surg) For auths I Communer IN I lrrant fur rutk at Jalilah Botha firrmante fur Arms and Jubilad (or the Scott and we aber hareke 1 Surejet la melation to the suit referred to above there is a standing news of £156 frt annum on aavunt of tempury tail which mir lot 2 annually by le Vinister locally in ennen tuon with the llas Pilgriman S. .. مهامه در کی 1

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·87 APPENDIX IX. Report on the Revenge and financial Administration of Gorennent lands and Bauidings in New Delhi, under the administratire control of the Chic! Commissioner, Delhi. The Control of Corernment Linuis, building and other property in New Dubi unist the Delhi le ministration 14 in the following 6) The I'rovincial Circle of the Central Public Work. Department under the control of the Superintending Enginer's rllon l'avenie (11) Tho Land and Development Ofice, alw under the runinit of them Superintezuling Engineer, Delhi Putince The Laris and properties alministrin l.s the Provincial Circle arv 0 by the proxelure presentar in the l'allic Worla Diputtineat and Publin With Ircount Coules and no revivun of cirsting arrangements wm nererurs So pacal stall us engaged for thr nalization of rescue The worlate by the clerical staff in the Icuotti Branch of the Disaal unit proper exccutive control ... The properties under the control of the land and the red puunt (.dor Le not however subject to the mystem Junid for the l'utila Work ), 14351- Gent. The bulk of the rescue i dette frum den of less and from the red kruund reint. The other items of trust nur are (1) putrarum oa te wtary k 48: (11) sale of nights los (10 STAU 3 of grinzin 1991 Arras; () mile of Butplus tres bisbes , lir) non son burettol Rajn in Gesernnent quartu e, and to count of plans will posat fa 15 a) Iwxlica showing the olandantmins of business 3. The entire propery unus the control of the found and Pian dengan Que a shona on majas rinuntand for the purjeen what he werele si se the larul rand, molt or un cupel Worn ans plite of Lan, arr wl urlewd, auctions are held unter thir muf*s11901 af tor fari ani in trat Olucrr. luction lists are pripitot in dup's ale o tlo mpwita' 1274 bayar Badrul anul Desclopment Ouer (or consent of the less fiind for the approval of the ("hte t'mos apstulel the pures of the door to domuzlit rintos paruullaan (folvin; allotted to the local Tor promum i territt wir un Suite 13 wliance, in which ajustand the amount tefria titului ! thepermunnenel at the town of weten inom tur viriu The bidder af artement to leave a circulen afire the giorruim't bot lanir (und in full. The realistions are not to be len si Ruskorball a inflaate. The original part of the chalan unit bis tin Barle tad arall Desclopa.cat Oilicct, who join the risco.pt in terrazat fram bilan u als in the statement abommasiwashuvid and so istars Tors 18 tallations are watchnithrush them anit.cre 11 for din fattir I fremrat duca lwing list of Bisate initt 151 a Swiya and January cuba year wtrn the blare withird streerilir ·88 the officials concerned. Ground rent for broken periods between the date of commencement of a lease and the 15th January or 15th July next whichever falls first is recovered in a lump sum in advance. As soon as the accounts of a month have been compiled in the Office of the Accountant General, Central Revenues, he sends an intimation of the recoveries as booked by him in a prescriber form The figures as intimated by the Accountant General, Central Revnues, are verified with the help of the original copies of chalans, statement of assessments and recoveries, the personal ledger, and the Register of Miscellaneous Receipts. 1. Permanent transfers of land or property to other than private bodies are made witli the sanction of the Government of India and the full cost thereof, if recoverable. is recovered in one instalinent. The maps maintained are completed to show that the property has been transferred. 5. In the case of revenue from temporary leases, sale of grass and grazing clues etc., the recoveries are always made in advance. 6). The Public Works Department Divisional Offices as well as the Land and Development Office are subject to inspection by the Audit Staff of the Accountant General, Central Revenues. 7. Recoveries from contractors on account of the supply of stone and Bajri are made in advance at a fixed rate, 0-8-0 per 100 cubic feet. A permit is then issued to the contractor and it is the duty of a whole time Quarry Surveyor to see that the contractor does not remove any material in excess of the quantity specified in the pass. The space to be quarried is marked for each contractor and the possibility of an excess quantity being removed does not ordinarily arise. This is further controlled by making the passes valid for specific periods as well as for il specified number of workmen. 8. In regard to the income derived from the sale of plans, an account of the cost of plans sold is maintained in a register in the form which has been accepted in audit. The amounts actually realized on this account as also on tlie other items of revenue mentioned above are noted in a Register of Miscellaneous Receipts. 9. a list of arrears is forwarded whenever necessary to the Collector, Delhi, for necessary action under the Punjab Land Revenue Act, and a writ of demand is generally issued. The cases of those who fail to pay even on the issue of such writs of demand are referred to the Chief Commissioner for orders. 10. In the case of the Land and Development Office, as in the Provincial Circle, Central Public Works Department, no special staff is engaged for the realization of revenue. The work is carried out by the clerical staff under the supervision of the Land and Development Officer. The checks described above enable an adequate watch to be kept on all recoveries and the existing arrangements seem satisfactory. 11. al builling inspector and a number of surveyors are employed to report encroachments and to see that buildings are constructed in accordance with the conditions of lease agreenients. Devintions from the conditions of lease ·69 agore meats are accwlonally permitind in cases in what they air colorrer ububjectionable. Uditional tecoscries from the leaves are taux me certain sale in such cases, and the qurtun of attlina drfinute wary in this matter is under consideration with the Government of lo sa. Tirana. leblent of the land and Development Oilice is the man ble forelskinnencreure Denis connected with religious building other than those in the claror of the Archeologual Department. Report on the Reveaus and Anancial administration of residential and Dogresidential Government buildings in New Delhi in charge of the Central Public Works Department llent for residential buildings aloited to Golemmat lanac and muscat In accordance with Funilamental Rule 43 1 while brint for trextraces allottal to non-ofliculs or for runnplentul luilling eller to commonial dejustmenen is aastal on the basis of Fundamental Rule 43 .. The rules for allotinent of Government wines to the art embodied in the Supplementary Rules Illotment to a tuttal of any racant restence is uninnly mulo only if * lion rin-nt sent is willing to sland surely for him. 3. The Rent Office, Central Public Works Departinent Irw Della 11 respunuble for the assessment anire overy of test of all souleatuslasit traulestial buildings in New Delhi and I). Ilus the allotment of wLab me by the Exlate Oficer, while the Distrona! O:lice so in charge of ihr arr Itaqasible for the direct rerutery of (o) the cust of articles of furniture and fitting fogni abort ut tanan of payable loy tenants (1) the amount neuverable fruim 11 Etlin formantne zbor! for clectric and water har 1. The immediate charge of the Rent Cicers AS er the Emers's stail designated "The Rest thirr Tas ir nani as. Dirumunal Oficer within the meaning of pura rapih 30 of the Power Hitam Iruunt Calc. Ila us poqunuble to the Chief Eure's furthe wristal -;-; Af the office, and fut asusting l... in fraainz prijarf mirditve: formally the respunublicics of the 101s mcaurule 2:1. turn to grorral poxelure to loo followed in carryia vit the work pro: il cally, the sanous clied to lie cuplused to contentar Tidak *c. The llent Odiccr u austet in the dicho delom by Dhirur barlant, wo w under the sun.isistir a watu filmitent lirial Gainel Beiraucs, and a burne og tierres Del license * papa : tu lufte l'albe lorslocurat Cintrosaibewirar fericinbal by the Cuct Emitect, امشه ،له به مد ::. نعم لدنه بادل نادا:The sour لي عنها ·92 receipts realised during the first few years of its working were considerably less than the original estimates, as will be seen from the following figures : Estimated gross Actual gross Ycar. receipts. receipts. Rs. Rs. 1930-31 19,19,000 1931-32 gradually increasing 1032.33 as the trade of the 1933-344 port improved. 1934-35 8,23,353 1935-36 11,25,311 1936-37 10,81,568 1937-38 15,31,758 It should be mentioned that the Railway Project is now paying 7 to 8 per cent. interest on a capital expenditure of Rs. 4,92 lakhs, and its net earnings, including traffic brought to the main line, in 1936-37 were about Rs. 35 lakhs. 4. The annual financial results of the port since its opening are shown in the following table. The figures in this paragraph do not include interest charges or any provision for repayment of capital. It will be observed that it has shown a small surplus for the first time in 1937-38. Year, Receipts. Expenditure. Deficit() Grant-in-uid Surplus (+-). by Govornment. Ry. Rs. Rs. Rs. 1931-35 8,23,353 19,94,092 "–1,70,739 2,00,000 1935-36 11,26,311 13,80,074 -2,51,763 50,000 1930-37 10,81,568 14,83,083 4,01,515 2,60,000 1937.38 16,31,759 15,00,088 +31,071 Mil Mr. Lilley had estimated that the results in the next three years would be as follows: Your. Receipts. Exponditure. Deficit (-) Grant.in-aid Surplus (+-). necdcd. Rs. Rs. Rs. Rs. 1938-39 14,61,000 15,60,000 -1,02,000 1,02,000 1939--10 15,38,000 15,90,000 -58,000 68,000 1910.41 10,09,000 16,09,000 + 1,000 Yil With reference to this forecast and the preceding table of actual results, it may be explained that it was originally estimated for the year 1937-38 that there would be a deficit of Rs. 3,86,000 and that even in the revised estimate for that year a deficit of Rs. 1,62,000 was still expected. Mr. Lilley's estimate was based on this last assumption. The fact that the year ended with a sinull surplus and that receipts were more and expenditure less than anticipated in tho revised budget, affords reason for believing that the forecast for the next 3 years has been framed on a conservative basis. It is not possible to forecast thio future position with absolute accuracy on the basis of the figures of past years, or even on the results of 1937-38, as the expenditure was inflated owing to some of the staff being on high temporary rates of pay, which have been und are bciny reduced us permunent posts are being created to replace temporary ones. Moreover, receipts had not reached any point of stability. It may also bu noted that certain new items of trade have oliered in recent months. In fact, ·Lx were orinally uludaw the capital protamine les xarxes 03 Abipoenta of salt to the port of Vizagapatam havo already commend an to purt may in futuro be used as a bunkerina port boxean going Vessels blu, ing to the Brucklebank, Ilansa and Scindia Lines. There is therefore, teams to hope that the port will increasingly attract fresh teule which will castle its refrnus to expand stealily and the Government of Indus believe that on the ftruent lasis of accounting and with reawnably goul gencral echar could iku, the port can show an increasing surplus on its onlinary workin2. 3. It is necessary, however, to draw attention to two factors which may malt in the puxation improving at a ratha alunit rate than the conferations wranced in the previous paragraph woull supreah The fint is that it n not cirse whether full pri Lion is at present being made to meet cssratial drpretiatus charges. The matter is under consultation in consultation with the Administrative Officer wbo is of opinion that, on the basis of the procedure folluweel at other major ports, full depreciation is trin, pruizin! It prulle. Lowever, that a homewhat larges contnbuting in.ur hare to be made to the Deprecuiion Fund. The amount involved is not, kouever, likely to be molarze u to alter matcrially the conclusion that the port should watinue to buwa purplus un ita onlinary working. 6. The recon'l of tho Lectors ne ferred to alone is that as a nosult of the in ference byturen the port authont and the DR purtments of Govern:nnt en contact it las lern decided that expenditure on the new works xhubl Le charged to revenue instead of to capital Tire threr works are for pr. Twits of auditions bunkering fuss alates at a cust of Rs 2009 (1) the ritenen of the conting water supply selene at a cost of Ils on and fuss the trigo al widersprut on the mouth made of the Entrance Changulata rent of ile 10 It u cununile send that by the włoption of the purwoxdure tlir gwort authorities will Love thio utrust inducement to increase thout sesenue and reduce tras export fare ko as to lo able to continue to slowa surplus on the orfars working of the furt. It is posible, however, that on savent of this debut the prirour farull the port may show a deficit at the end of the bear, but 1828 rut, if talamaks, shouki nullo trganle as a pouf of laws on its orlinin m. the amount of the deficit is greater than the cont of these tun with all to defeat materiale, tlie Giovemu nt of ludu are propu to shahr Faut-in and under the led 30-Ports and Plutage ' mert a thu fall in aal will not be reginlal as part of the capital outlas of the post of e punt fusils will bu rejuin w repuy it in futur year, without inters! ha residue. It is hope in tlis way sw aruul any lacrime of the capital on the past and to deep down to a enunumun the bunica il intczase. xatte pmost will cventually l.ai o to face 1. It may be mentousei bere that at the Caferisco reformi tous mes nie vermind that no further capital capaculture sucht Drooi van pat bosif can do abown either to be dclitutels roma anctaliro er to be abowidly col for the inscreola of the port. Esfradituse vo the futurua: tiesa wiecy purpoaal:- (1) Guatractan ofansos bulus Contractxa data quarta 01 The Lecare 1.10 1cuu ·94 This decision has enabled a sum of Rs. 2,82,000 to be surrendered to the Finance Department from Demand No.76mCapital Outlay on Vizagapatam Harbour for the year 1938-39 thereby reducing it from Rs. 3,86,000 to Rs. 1,0-4,000. 8. From the foregoing review of the financial position of the port, it would be unwise at the present moment, when there is every prospect of the port being able to meet its ordinary working expenses and depreciation charges, even though no repayment of interest or capital can be made, to consider the question of closing it down and thereby wasting the capital invested in it. Moreover, the combined Railway and Harbour Scheme has led to economic readjustments in the port's hinterland, to the undertaking of commitments by various commercial and industrial firms and to increased facilities for business generally which must be reflected in the profits of business concerns and consequently in the general welfare of the people. The fact that during the year 1937-38, 6,91,509 tons of export cargo and 32,669 tons of import cargo were handled at the port illustrates the importance which the port has come to assumo in the economic life of the Eastern and Central parts of the country. It is evident that the closing of the port would have very much wider repercussions than may appear at first sight. The question cannot be considered merely, from the point of view of showing a saving in the particular heads of the budgets, concerned. The closing of the port would result not only in loss of revenue to the railways and loss of general revenue to Government but would be a retrograde step in the development of India's economic activities. 9. In conclusion, it may be observed that the suggestion at the last meeting of the Public Accounts Committee, that it might be desirable to consider tho possibility of handing the port over to the Railway to work purely as a railway port was examined at the Conference already referred to, but in view of the decision that there was a prospect of the port being able in the near future to cover more than its ordinary working expenditure, the suggestion was not further pursued. If experience of the next two or three years shows that the Port is not in a position to meet its expenditure, much less to pay any interest on the capital invested and can only continue to function with grants-in-aid from Government, the question of the Railway Department taking the port over will have to be considered more fully. The question of comparative Railway rates from stations in the Central Provinces to Vizagapatam and Calcutta referred to in paragraphs 11 and 12 of Mr. Lilley's memorandum was also discussed in the Conference held last year and action where necessary will be initiated by the Administrative authorities of the Port for the removal of any anomalies that may exist by representations to the authorities of the Railway concerned. The Central Government are of opinion that, having regard to the considerations sot forth in the previous paragraphs, neither tho question of closing the port nor that of handing it over to the Bengal Nagpur Railway should be pursued for the present.

·On a tho Ippendix. In fusing the parent that ororks of any magtuture. Thoncat 3 was to lea! * * permaneat shricton sta:J for me is an 95 APPEYDIX XI. Report on the staff employed in the Central Public Works Department, la paragraph of their Repwrt on the accounts of 1933-347, the Publio Accounts Committee expressed the desire that Governs at about to gale #bether the staff employed in the Central Public Works Department Yunot unnecessanly large and subrot a report to then on the subject The rawa why the Cornmittee felt that the Departmunt might be overtailed vus lucause there had been savings during 193.3-36 amounting in all to about 30% of the original budget estimates for works 2. It may bo explained in this connection that tho trmporary start to Le employed in any particular year is fired on the basis of the amount which ile Public Works Department 19 esported to spenul during the year 2:21 not a the total amount budgeted for work, which in srveral instanrra insluire be out of inmature projects put into the budget without consulting the Pallic Works Department authorities beforehand as to whether the amounts grurile can actually bo sprent or not. It follows that any savings which burut as a consequence of the inclusion of iminatur sclirnica to the built canaut belaken into account for the purpose of effecting a reluction in this iraporary staff to be einployal. It is not alw jwasilile to eflextrajucives te stali in cxact proportion to any rexluciwn in expwnlture Steps arr. Wireles, taken as explained below to adjust the staff accunline ww actual My urata on tho basis of anticipated experitur Sanctwa to the maplus- Kit of temporary establishment is accurled from par to rar aller Relal xtutiny is tho Labour and Finance Departnients of the narrey fur I propriul to w emplosen Irrangements hasr kara nude to Maraton wi bulgeting by the incluson of a boonulary list of work in the lulat, rucudended by the Committee last year to which s1115 of anr frunze tary lust can be discrted. Instructions hair als born is on that The wrzucais should ascertain before band from the Department of Labour o carroditure can be incurred on a work dunng tám rnong Curried rear llure provision is made for it to the balat It is tupes that three de 15 weats will scuro closer conformes in future brewers she ture four not thing the staff requind and the total amount actuelle inelulelonebo e fur civil works. The superior slalt in the Central Public Works Departs.cat Company • Ct Engineer, + Superintending Eazarets (quransit !! carg) and 16 Diniyonal Oficent 19 permanent ad 7 tempranilenlist of Engineer Olice in the Cu frestina Virretaratei dari inte a nicem (Eircutivo Estero), to hwaitr w rise face cons.

·96 for a modest programme of new construction work. For construction works of special magnitude whether in Delhi or elsewhere, it was contemplated that special temporary staff should be employed in accordance with the actual needs. · Of the six permanent divisions, 4 were intended for Delhi and Central Works in the Punjab, 1 for Simla and 1 for Dehra Dun and Central Works in the United Provinces. In 1933, two posts of Superintending Engineer in Rajputana and Central India were abolished on th transfer of the control of Public Works in these areas to the Central Public Works Department, and two permanent Divisional posts were added to the cadre of the Central Public Works Department to cope with the normal additional work transferred to the Department. Two more divisional posts were added subsequently on the transfer of the Public Works Department establishment employed on the Viceregal Estates to the Central Public Works Department and the creation in 1935 of the post of Engineer Officer in the Civil Aviation Directorate to advise the Director of Civil Aviation ou technical engineering problems connected with the developnient of Civil Aviation. The number of permanent administrative posts, however, remains the same as betore, and there has been no increase in the permanent Divisional staff in Delhi although the number of Goverument quarters excluding menials' quarters maintained by the Central Public Works Department has increased from 2,320 in 1929 to 1,179 in 1938. The four permanent Delhi Divisions have been each spending on an aver: age Rs. 9. 1 lakhs per year during the last four years as against an anticipated annual expenditure of Rs. 8 lakhs per Division when they were first coustituted. The annual works outlay in each of the remaining four outlying Divisions has practically remained constant at between Rs. 5 to 6 lakls per Division and, owing to special local features and their geographical situation, it would be administratively impossible to amalgamato any of them in any other Divisional charge. 1. In addition to the Superior engineering establishment referred to in the previous paragraph, there are the following permanent superior specialist posts in the Department :- (a) i Consulting Irchitect, (6) 1 Architect, (c) i Electrical Engineer, (l) 1 Superintendent, Horticultural Operatious. (cz) and (6). Government have a special interest in the proper Iny-out of New and old Delhi and the development of these cities on sound architectural lines. The duties of the Architects, therefore, include besides the preparation of designs for buildings to be constructed by Government, the scrlltiny of plans of private buildings constructed in New Delhi from an architectural point of view and the giving of advice where necessary to the Delhi Inprovement Trust regarding the suitability of lay-outs and designs of new buillings. .

·97 (c) Ono post of Electrical Engineet on an Executie Engbers's malo of pay for the whole Department cannot be consulere an extravagano ia view of the large nuinber of ficus and residential building of whab tho electrical installations have to be loobcd after. (d) That Government of India are satisfied that the Supratendeat, Horticultural Ofxcrations, is fully engaged in the maintenance of the genicu Attached to the numerous Goserament buildings, Lawns and parls ia Dulls od New Delhi. 3. The Cosernment of India have considered afresh the accessity for the pcrmunent staff referred to above and hasa coine to the corulasiou that trnet LA LA . Abra designed 6. For construction works of special magtutude, a sprcial temporary Construction Circlo with 2 DIN Ons was in cxistence all the lat.Ipnl 1907. The actual expenditure on construction works during 1936-37 amount to Ra 20. 44 lakhs. In view of the reduction in the construction pro ammo during 1937-38, it was found pussible to abolish thu tempurary Circle with effect from the lot.April 1937 and to retain in its place only oor trmsprutary construction division in Delhi which came out construction works anting No. 5.57 lakba during 1937-38 Tho Division bod tu urylertale in additna to preparation of prelaunary plans and estimatus for certain larat mahang It will ulertuko during the current financial year wurhs custin, Ps. 121 labhr, 117., tho Romero Bank Building at Lahore, the catrason of the South Bloxk, Dlhi Secretanat, auditional trandential accommodatin anul I'rtas quarters in New Dlhi, etc The cust of inaintaining this tempmary Dar24 during 1937-38 wus RX 63,017 against Rs 1 2. lshlis the cast of the Constructua Circlo during 1936-37 incluir of pro pula direction charte i. For reasing of mininustralise cunrencaire it was derind o calo with effect from the 1st Apol 1937 a Curcle fur ebm Deltu t'rvature to us with all anmacching projects wlica come within the slingsstratie vat of the Chief Commutacr, Delhi Thus (ircle Quinpris. {W poras! Dent, 13:, the Princual anl Serriers Daisant and fun tempurary Dans har although mannet bv alat from the Central l'uble Worla Iural u ned the dinit adininastratase tuntil sube (Lirf tumia w.. The dup menacs at a total ratinuta aut of 1 34 19 laths dunn: the Fri tigancislyrar, Thir tuisl outlar on wurde eine wir! lists Dr!:a l'15 Fuel Cale duris: 1:137-15 vas Ra 1j.!!aha Iturberipiirad bomb. bat loistie muutmin in the progratite of timjur bl.a.: *isis aille Krst allika of the Constructa l'inde, it willie Lara turn court Judit extra fepurary sla:] lurte Delta l'utes and Cirror Tbrt ta in the total vutlar chuilling muras has the been uixi by ste sitio ·98 tional outlay on new schemes connected with the Improvement Trust, City extension, anti-malarial work and sewage disposal. 8. The remaining superior temporary staff in the Central Public Works Department consists of i Superintending Engineer and 4 Divisional Officers with headquarters at Delhi, Bombay, Calcutta and Karachi for carrying out the Civil Aviation Capital Works programme. In 1935, it was decided to create a special fund of Rs. 92.57 lakhs for carrying out an extensive programme of Civil Aviation Capital Works all over India and Burma. It was felt that it would be a great advantage if the works portion of the programme amounting to about Rs. 57.2 lakhs were to be entrusted to the agency of the Central Public Works Department which could remain in close and constant touch with the Civil Aviation Directorate. Under this arrangement, the payment of heavy departmental charges to provincial Governments could be avoided and much of the delay and difficulty attendant upon the entrustment of works to provincial agency obviated. In view of the scattered naturc of the works it was not feasible to reduce the number of Divisions below 5 or to include any of the five additional division (including one for Burma) in any of the three existing circles of Superintendence and it was accordingly decided to create a temporary circle under a Superintending Engineer who could work in close co-operation with the Civil Aviation Directorate. This Circle caine into existence on the 14th February 1935. It was orginally anticipated that the Capital Works Programme could be finished in 21 years. The preparation of the various projects took some considerable time. There were also unforeseen difficulties at the start which delayed progress. These difficulties have now been overcome and work is progressing satisfactorily. The budget provision for 1938-39 under this head is Rs. 22.71 lakhs which is the balance available out of the amount originally funded for the purpose. It is expected that the entire programme will be worked out and practically completed during the course of the present year. The Aviation Divisions, in addition to doing their regular work, undertake such other work as can be found for them in the vicinity although it is true that they can undertake more. The Bombay and Calcutta Divisions are expected however to carry out during the course of this year other major works costing more than Rs. 6 lakhs while the Karachi Division is taking in hand works in Jiwnri on behalf of Imperial Airways at an estimated cost of Rs. 4.! lakhs ; the departmentul charges realisable, viz., Rs. 78,000 would be sufficient to keep the whole division going for a year. The works in Jiwnri are expected to be completed in about 9 months' time. While it will probably not be possible to reduce the number of Divisions owing to the scattered nature of the works and their urgency, the question of reducing establishment in the divisions where works are nearing completion is under consideration and certain temporary staff has already been reduced. Other possibilities of inaking use of these temporary divisions by taking over as many works as possiblo from provincial agencies are being explored. The Chief Engineer has been asked to review the whole position and report the result to the Government of India not later than the 1st of September 1938. 9. It may be explained in this connection that the actual outlay on works is by no means the only criterion for fixing the staff required by the ·93 Department. The Comınittes will be interested to hear that during the lau! two Jeans the Central Public Works Department has had to work out morning to the total value of abwut of a trore of risp*wbub lor sube kasn or other have not yet materialize] or have kun lidi in al zalice muat deal of ume and labour had to be spunt in the preliminary in cagation of the Thojects and in the preparation of plans, deugns and estimates Tlo ant of thus work valued on a comincial basis cuinat de la than Rakina Although this work is not ruflected in the tigung *** pulture un muris, it w obuously impusible to ignore it in ditennining the strength of the cader 10. It would be useful in the annection to compute the initiam of establishment costs to the wurks outlas of the Central Public Works Deut. Dicat with that of a Province ubichlias pruutically the same nujx fur statl.:. the Cutumunications und Buldings Branch of the Bengal Public Works Depart. ment. The controlling stail in both is consists of l Chnflinginn's and I Suju matending Engineers wlule the numlar of Divisional posto u 1. in the Case of Bengal and 16 in the Central Public Works Depurtment including the 7 ccmporary divisions. The percentage of (sisblıshus nt custs to work outlay on the basis of the budget fyns of 1933-39 in junts to 15 14 10 Bungal against 14.37 in the Central l'ublic Works Department l'unsadering the large area to bu curlful aud the scattered nature and urgency of their Words and the enormous volunic of estato and resenue work, the organica. imu in the Central Public Works Department cannot be retninas fixral va ancronomical lines. 11. Regarding the qualifications of the staff wlach the Committee kuva Camaled on and referred to in puraztaple 67 of their nfurt, it tabt fra Haled that recruitment to the Central Engneenaz Senico Class I. 1 tunde by (a) the transfer of Indian Sero of Englauns utfernt frum proritices () ofera cumpetitive examination held by the Federal Public Snice (os. Kuop stui (c) promotion of wuitable ollicers from the lower ranks with the Mocurrence in each case the Cutnmi von U) the puj«nur alminuira. uvo jumla are at present mannred by Indian Ser wouf Euxinero olion The Invinsonal and sub-Disisional pusts are held by cstbet Indian sinuice of Eg. raths oflicers or oflicers of the Central Engine sing Serse (145s Terapan Tuy Vacancies in sub-div stotis are kinerally fillal by the protowa uct. paraned subordinates 13. The Committee suparst that the work connicial with Chul Svilmas and public health is of a spelled wature. The Couscramcut of Italia atr All that much of this work it of kind uricrtalen per jar brila wolnary engizinar. Tlied was of nume of the unistuullaut wuthi buronat 8. the outfall somer and the xranity dull currected wild the LC Work wnual wheats), aro perjuan by ile saperlotuliaFilmatort, flcalls mant, ww is a specialut odlicer Ich undre tus dixe, s! Man ** are risculnd by the auary Publx Horis Doritet Tlis pracks Did Las been in segue unce the instruction of the br* capital is at ·100 Delhi was started has proved quite successful and is undoubtedly more economical than the maintenance of. special Divisions for the purpose. APPENDIX I Circle. II Circle. Delhi Provincial Circle.* Aviation Circlot Dehra Dun Division .. Now Delhi 'A' Division Provincial Division Delhi Aviation Division, Lodoro Central Division Now Delhi' B' Division Services Division Bombay Central Division. Construction Division Simla Central Division djmer Central Division Viccregal Estates Divi. sion. Special Division No. It| Caloutts Central Division. Speoial Division No. If Karachi Central Division. Specialist posts treated as Divisional charges. Horticultural Division Electrical Division .* The post of Superintending Engineer, Delhi Provincial Circle, is tomporary, sanotion to which cxpires on 1st March 1939. Tbo wholo circlo including tho divisions is tomporary, sanction to which expircs on the lat March 1939. - . . # Temporary Divisions : present sanction expires on the 1st March 1939. - 1 1 ·101 APPENDIX XI. Report regarding the purchase of stores by the Central Public Works Departmeat. la paragraph IIG of their lleport on the accouats of 1933-34, the Public Accounts Committee desire that a report should be subrullol to them on iba subject of the purchase of stores by the Central Public Works Depurtricat The Committeo were under the impression that stors are purchasol on the basis of a larger programmo of capital works than 13 actually carnalout, thus resulting in the unnecessary and avoidable accumulativa of stores. 2. Storcs or stock which aro toquircul for ordinary work are not onleral ustal it has been sanctioned, funds for its execution havo bera allotted and tho work has bocn put in hand. In a number of cases, contracts for works to gaven out on lump sum and all materials run therefor ese pro rüded by the contractors themselves. In certain l'ublic Works Departareat Dinsons, however, small quantities of stock aro muntiined but their value depends more on the naturo of the work and the illiculty or ctberxis of obtaining storca quickly than on the value of the work to be done, asvaly such on page 231 of the Appropriation Accounts for 1936-37, the Accountant General, Ceatral Revenues, has meatwnel that the material bed 13 luck wa the Depurtacat was reducol from Rs. 68,911 to Rs. 20,633 June, 1936-37 (a cum parou with the reserve lunt of stock of Ils 1,12,118) fixou for that fear) as that the closing balance (Rs 26,033) shows a satisfactory raluciuc It way be aliou that the fire linnut of stock in the Central Public Work Lepartment is being steadily lowen Thu is en word by the fulloniti figures: Your Hann laut 1934-33 1933-34 2.1.1 tai 33 IWAN 1935-36 1936-37 14735 3. Thc Cuminuttee will obxne, therefore, that the relial Polis WW Depurtarat are not purchasing Hurre in excess of luftimal ftjustitie

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·103 APPENDIX XII. FXTRACT FROM A XOTE OP TILE CONTROLLER OF PAINTINO AND STATISENY, Ispia. .. . - Les far as I could understand from your note on the subject, it Xem that you are anxious to hnow why laryo vanations as beturun the budget pitutison sad the final appropriations were needed. It would, therefore le Dicturv to give you an idea of how the budgets of the Sand P Difurtnant Are Iranul and what are the factors which operate to upset same ur nniler it itpussible to budget with moderate accuracy For this purus I will malore the Ludzet heads under 'Purhase of Stores' as thus would fully illustrate our dubculties in the matter. The budget estimates for the purchase sale of the Stationery O.lice arc framed on the valuation of the quantity statements incl by Coutruller Thuc quantitics represent the estimated requirements for the car in questwa Inne ca tbe a crage of the past threo y cats' actuals with such malifications in the istimates from the Railways and other apacial departinuta ordy Ollicr cuplate matters would warrant. The valuation is maile on the prius ruling at the lume, ie, in September of each y car proceding the financial year for which bukast satsnatcs are framad. On the settlement of the uctual contracts any Sanativas in ile budget provision due to fluctuatwn in prices are communicated to this Finance Department for necesury prorsun The propus fur the lucai Concrninents are determined by cach local Goverment and cutamuucale to the Stationery Other for inmormatwn in the annual requirrtucala sub bulget provisions to grant is a net one allo ruch as the Irmy, Raunas, a'. anu , lic. UNNE lo furccast with any dearce of precisun ticis requifemrits for any purucular Tout and any variation in the demands automstkally upci vur builder . Simularly any sanations in this requirencats of the l'uscual liviem. tuata for which aktioual provisiuns are made by the local Gorcmturals ia te coating of the car upusit our budzet prolivua as the $ ad P bulmrt dors tunne fet any bendit of the extra prviluons inade by the final livirralliels alibourbo prul mions for Storrs have put to be made to meat lixal Guscaraw totisciacats and to obsiate their citra granta bronz lapu. Now I pruend to discuss the figures in detail for the șcar 116-37 Car Aune 0 3 13 191.13 MU It has tow to be explain! fulgrant. In the firs hotel Butllic frar 1:6-Sieme in Novinu bad de Surb extra insuct laul justially loca tort by ripiantistaa sind by ·104 lowering the stock balance at the close of the year. The supplementary grant was needed to meet the extra requirements of the Provincial Governments of which details are set forth below for the years 1935-36 and 1936-37. Issues at cost price. 1935-36. 1936-37. Bongai.. 6,51,275 8,17,333 Punjab 4,85,801 4,97,143 U.P. 1,96,0-13 2,10,190 Assam 39,153 45,143 N. W.F.P. 71,127 80,952 Coorg .. 4,933 1,952 14,18,332 16,61,713 i.e., a net rise of Rs. 2,13,381 which was covered by the supplementary grant. The extra requirements were for paper required for the printing of Electoral Rolls of the various provinces for which no provision had been made by the Provincial Governments at the beginning for the year but money was found later in the year to meet unforeseen demands. The Stationery Office was under an obligation to supply paper, otherwise the extra provision of the Provincial Governments would lapse, but the extra requirements could not be anticipated at the time of framing the budget. The amount covered by reappropriation was made available by a rise in Deduct Recoveries owing to extra issuos to tho Paying Departments which could not be anticipated at the time of framing the budget either by the Stationery Office or by the departments concerned. Modified grant. C. 1(?)-Typewriters, etc. 2,05,000 20,000 2,85,000 The modification of grant in this instance was necessary to meet unforeseen demands for typowriters and accessories due to the creation of now offices and replacements of typewriters and other machines for the various offices of tho Government of India. This head includes prices of typewriters and duplicators and their accessories. The budget estimate is framed on the basis of actual issues during the past year subject to such modifications as any useful information regarding the variation of demands available at the time of framing the budget would demand. Tho creation of new offices, tho constitution of Commissions and Committees and roplaconicnts of typowriters aro factors which cannot possibly be foreseen with any deyree of precision at the time of framing the budget. I will illustrato this variation by citing actual figures of issues from April to November 1935 against those of the corresponding period of 1936- R 37:- (entrul Cis il Central Jilitary Railways P. and T. I'rovincial .Ipril to Novem. Aprilto Vov. einbor ember 1335.30. 1930-37. 230 300 199 205 10S 1:7 37 03 191 120 • The ligures for ins40 to l'entral Civil Duport meuta record an increas of over 5% per cent.

·105 IL The increase in the number of typewriters and duplicator connotas a natural so in demands for accessories. The additional demands set forth above justly to reappropriation made under this head. Vodilne test CI (3) Other Storce 2,13,000 3.000 8,00.000 The actual expendituro under this head for the year 1933-36 naslis. 7.79 lakhs Extra issues to paying and non-paying Departments were responsible for the tirution under this head. The extent of the extra issuea madio to the Central Anl Departments luring tho year 1936-37 as against tho jaar procedir.2 wouli explain tho modifications necessary under thu hool. Inucs 1035-38 1936-37. -3.47.00 27 31.6KM) To moct such extra demands tho stock balance was relucol by Rs 7 ) lalhs during the two years so that at tho cnel of 1936-37 the value of cluang stuck Llance came to Rs. 3.19 lakhs as against Rs 18 lakhs in the scar 1970-31 The heavy stock balaaco in tho prucaling scurs tendal tonicloud thenchufr u molifying tho original grants by reappmpnations of supplementary grants but tlo prescut stock balanco dors nut affor any ribes in this linetion Besides, there aro other factors which tenil to upret vur budnite prots. ID . (1) authorisation of issucs either frow or on paytacat preduz (ruus the Department of Labour in the course of the year (2) oxtra issues on cash payment to Military l'nits and furtutunun (3) Unfurcseen demands of the Defence Department for ogrtaliucs tho Frontier, mobiluation purposes and extra ruiresurnis tur outturn purposes wluch are all kept outside the best of . . .. .. .. 1.6

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·107 APPE DLX XII. SIEVORASULY, Thiis memorandum us ia cxpurgon of tho information coatained in puua. gaplas 9 to 16 of the Important Cyniments (on [474 35331) Ilux the up propriation account relating to Frontier Watch and Wan (a! Sun-full) fur 1936-37. It was casulerul tu lo un durable to oural the appropria Live accounts with details of the numerous irte-ulantes matenient of tuto igfortant instances of this types of irregulanties neattutela tle Importact Comments is attached fur the informatxın of tho Public Iccounts Committre. The object is to make tha inforination ulliciently complete tlat the Public doounts Commuttid may be able to deal with the stuatun disclosed by brno Irregularities finally in the July 1938 Mson. 2. Tho Government of Inilua laso ji tu ixue unir va a few inda kual irrrgulantıcs the most infurtant of which lato la mcational lotto state meat; they also has still to kuue genital uniers in connecting with fullor. () The Government of lulus intend to insuo a letic dealnz with the utrzulants in Keneral and containung sa cup of full Joterunnalion to tako sto steps agamut any oficial loaftrs this waming, indulges again in, or fwsmits hus sabonlunaine to indulgo again it, those irregularities (16) Tho mnothol of drawing and acounting ſur charme nella lo" En tertainment charging ", " Protectwa awl tarls" and "Secret Services requir definition, asul tho objects on whxhibe foranis under the last suu butuls IDar kunately Luo "priate It run Salt - Amewewe turpsher, wou. A la sua sto sul pall lui * It Couleur (o pan ***) care 15:1 and there was o udellam". dhe te ** Kurd transists her til at den for 6.5 ans with a by At he Lure ronde netepper ni wahe Why ** Www writom Ivy wil min fra Was Wort med the wa het Amoral the survet bioru dress for to where I ** Let me mere in - 1 E và tre plus We wonen www. 11th my w ** 1 Budweit im *** JIA ·108 Scrial Details of irregularities. Substanco of orders passed. Oners not yet issued by the Gorera. ment of India, (c) In March 1933, tho Local Administration sanctioned the appointment of 3 agricultural assistants (2 at Rs. 50 cach per mcason and I at Rs. 30 per mensem). So agricultural assistant was actually entertained but pay was drawn regularly and credited to the Bagh Fund and ultimately appropriated towards the general erpcndituro of tho Fund. Orders not yet issued by tho Goverament of India. casc3 (d) The accounts of rcccipts of the Bagh Fund in somno woro inaintained on slips of paper, and it was noticed that amounts were outstanding from customers since 1934-35 and that no cflective steps had been taken to recover them. 3 Iccounts of the Deputy Commissioner, Hazara. Amounts paid in 1930-37 as allowances to certain tribes Hero not in accordance with sanction; rewaris sanctioned for a tribo (Rs. 1,000) and savings in other cases were approprinted towards payments to other tribes in the form of Lungis and rewards to Frontier Constabulary Government servants and others without tho sanction of Governincnt. Tho rogiscd distribution of tribal allow. ances has been sanctionrd and instructions issued regarding procedura for payıncnt of towards to Maliks and Government servants. dccounts of the Political Igent, khyber. (a) is tho caslı balances in the hands of tho Cashier amount. Security roised to Rs. 10,000. cd at timca to as much as Rs. 60,000 his security of Rs. 6,000 required examination. (6) It was noticed that from tho grant for "Entert innent Tho system of paying lump surus to Changes" sums of Rs. 360 in one case and Rs. 50 each Political Offices for entertainmeot in four others were drawn monthly, and suins of charges has been stopped. Auounts Rs. 500 in one cago and Rs. 20 cach in four others vero required for this purposu should do drarn twico csery year on the occasion of Ids, but drawn froin tho treasury as and monthly accounts of expendituru weto not rendered when required, and properly account by any of the persons who dres cho aniounts. Tho ed for, General onders and to inue classification of the charges also was not on uniform separately particularising with from lines, tho payments having been charged to " Entertain. sodalle precisiou the objccts on which ment Charges and " l'rutection and Raids" and thuso staold way ba apent. (morv frequently) "Secret Serricco". 1. Was soliced also that the grant for "Entertainment Charges" was not strictly limited to its object. Two instances are mentionel in which it was onlered that the 700nt shall lk !not fruit this dir3d (but they were uctuslly charged to " Prolection and Ilaida"), nainc- 01 (i) Donssion of Iha. W tu iku Duty Suciety of the lalu. min College (ii) Ilire of car (In. 11.10.0) which carried a box containin, medals and tilta frura P'rshawar to Landi Kolal on the occusion of the Silver Jubilec. of cours of the Deputy Commissioner, Bannu. 5 (a) 147 pagrica were purchand out of the hibassular Fund at a cut of Ra 2.1.) racb, and sold to the Khasan at the rate of Rs. I vaig, which we imegular sd the 19 PRIY v chthicz w insuaiuible. The pureliado and sale baro been an.co tionnu.

·tilanu. (*7*** *Walanta 1.2416*t time the In Yorum 945 korala bih It's **** in Irlathor II # As nur 1437 Asinelo mahutayo the wheesti la 10% • ut finally on witth Juunt in wurden warudi De Tinen tarweise The nature #SRL TL ir Aliun barojams that *** in in tend the dorm *14.re the In Motive It's v domowe lamele tra..." innen met att sitta *** v-11-14 14 stalasnt TXT W Thermal terbita A ' . ' 115 Inne www w. SAW.. Pils penal golpo di málafl + 1 Sebrate It ena 6 #reis Wimurrardi In Arenting the beau (18 #Wuns Trao - In hami. Now ther HL *wi. + M. i ***wth Hem massalto! ST tan Sawant sayt halt im LA IVA Inc.:19ini an tuntutan eta Tut. The they are not + hallen i motor ke + n 1 ) inne i mu *T** « * 27 may pul iwwal 14+* walised 14thre, terer Altstro te Unte Mivel a tinten dat blive 14. It nten wat hun Cal Tomo frutal that 1 with Soup Hotel Aeroline tanken Le but we www peut- 2. inhalaan Manitowy INA ·110 Details of irregularities Substanco of onion pase. Serial Wo. Accounts of the Deputy Commissioner, Dera Ismail Khanh 8 Onders not yet issued by the Covena. ment of India Presents were given to Government servants out of the Compensation for Bonier Offences Fund-tho sufijs paid Iron April 1935 to Uclober 1038 amounted to OSVE Rs. 700. It was also noticed that otlicials and privato individuals were allowed advances from this Fund. Accuunts of the Political geni, Vorth Baluchislan. (a) Sum of Rs. 1715 representing runt duo from the employco The recovery is to be reported to the of a contrictor was paid to the ſilitory lingineering Comptrollir, Service on Och December 1933 from the advance account, it remained outstanding unul 11th March 1930 when it was niade good from the Geural Fund which wild an irregular fund maintained to accommodate all unauthorised income and expenditure. The amount is still necoverable and the Local Administration have issued instructions to the Political Igrnt to tako immediate steps to ciiect recovery or clso to.resort masons why ricovery is impossible. (U) The stock register showed that some r-sidential quarters Onlers not yet inued by the Govera. Here furnished wild Government furniture, but rent of ment of India. fumituro was apparently never recovered from the occupants. (6) laluable articus purchased out of inngular lunds and Tło articka prurchascal (rom fiksasalar not been entered in the block register. contingenciou should be onland in the stock regialers and checked from Issuunt of the Polical geni, jalaland. timo to timc. This will bu verilica during thu next local audit. 10 (a) Furnitun who supplird for the P. A.'s icsidence of the Rent to be charged from Ist January cost of the Mircullancous Fund but rent kas not clargeu. 1938 (as in the caso oftbo rrsidencu oi thu P. 1 Kurran). () Tlie underly of the Assistant Political agent, Chitral, Tho gratuity was unjustiticd and, in *as in acest of pay of Ils 43 a mouth froni an irregular Any cave wax farin cxcon of the limit tund. Only death, a gratuity of RA, QUO UNI said to his of six juonitlis' jus usually applied family mainly on the ground that his death was attri. by the Corrmmcnt of India is id butable to pneuinonia which he contracted while on) case of compasionalu gratuits Hervice, But A rcfusal to sanction the jo lisent would insolvo frcoresy nuus the manchioning officer and Finance Department felt that it would scarcely desirablo that this oor CALAU should le singled out in this liabilon.

·APPEYDEX XIV. SILMOILAVIUM FROM THE CIUL SLCRETARY TO THE GOYLAYMENT OF THE SORTU WEST FHOXER PROVINCE, TU 1. JUL DEPUTY CONVlastax c. 2. ILL I'OLITICAL AGENTS IN THE NUIT WEST FHOX71ER I'ROVINCE, 3. The .ISISTANT L'OLITICAL AGLST. Carral, No 11039 19 1 1 TRI, DATED I'LLAH A# Tue 9TH JAY 1933. Struct.--Regulin hon of 187ryulur furele It meansche to the society of the laxalabimanuttafun that ry is elraun frequently from trasure without le mani tu stunnuse nywire. perta andare in bx+letters for disburs mrnts that may anu a due coure Thun fracture is a truetar, snvuling potent run of heavy cash llarueri BALI which is als undressable, and bull le disuntinuod fuisthush Ti.. Jawed Admuistration mul impress up all thow cuperman ilat, in future no suoney should be drawn (run the in asutrs unlewat requiritur in tirsdate duburrement. If in any cam, it is ſuurul that the whole amount or ant jas tion of a drawn frum thietfrasury cannot be suburxol immutels es in bras future ex antique, the undebursd amuunt may le nfululaisto the irra. sury and te drawn when it required for duurwarnt, 10 LATTIA TROM THK «TAYT SI CRETARY TV) TILE GOURMET OY INDIA IN THE EXTINSAL. ArranL DIPARTXINT. 721 (11. ICHITARY TU) THIE (STKINI.T or THE X16 NIT FIUNTIMA I'ROVINCE, Yo, I'. 3. MAILD SALA, TNT: 47711 JL. 1.C. SEMELT...tudut of the unwurde in the Surih licu Inimiere I'ruttury news With trfriruur lutter cursusjutule sue riables with Jerer tirsdaaralumn . C WIIK ON laklx" "corne"sull Im fra. Tiry al.) Tollar 1. definatante bara en sveplai lip shir (ponder, Surth col fnt.is Ironine, wo will, barrier, lamine the tiuller further in Leef heal ires pour toilet, with a v** la Wahlin online tritt al.), anglima crimetilialas I aiutumillal the timerrat of Itria Altach catulation p***a** (this asiasta thor atbu aratata.cat. at kasd itsmes in futurr. W**NULX LUX TH* Cur TCAETARY TU ins***YEVT. RTU HT FREYTIKA IV. TU Yux l'ex SHTETAXT TV Tux liurrar. MAXT * 1x > THE BATTAVAL ITU DETANTYLAT, ul. I'S,HIGTRI, DA ILHAX 816 u Var les SEMUT. of embed vykunmat on the Sirih ivezdi'nino Prv** Igorura Thalesiae nativitetene trk: EiT 1. alaa olla ئه الا انت ما لمهل ,11 بار 1 ·112 2. After consultation with the Comptroller, the Local Administration is of opinion that if the amount required for disbursement for “ Entertainment Charges ", " Protection and Raids" or " Secret Service " is not heavy, it should invariably be paid from the permanent advance in the first instance, the advance being recouped by drawing the amount subsequently from the Treasury on fully vouched contingent bills ; in cases of emergent payments of large amounts which cannot be paid from the permanent advance the money should be drawn from the Treasury. The detailed procedure regarding posting of cash book and contingent register and preparation of bills have already been explained fully in Comptroller's' letter Yo. C'ent. T. 15-14/102:9, dated the 20th August, 1936 (copy attached) and instructions have been issued to Drawing Officers accordingly. This procedure for the control and accounting of money for “ Entertainment Charges ", " Protection and Rairis", and " Secret Service is in fact practically that which is alreadly observed in the oflices colle cerned, but instructions are issuing to ensure that there is no varience. 3. Examination of the object on which these grants have been spent shows a large number of different objects on the justification of which the Local del ministration are fully satisfied but for which it is difficult to frame any useful or all eml racing definition. The following are suggested :- (1) Entertainment chargi's: “Entertainment Charges" are intended to cover entertainment and travelling expenses of individuals and parties who visit a political oflicer in connection withi Government duty, or who perform duties involving themselves in expense, The money may be paid in cash to thie person or persons for whose entertainment it is intendeel, tu some other person who has paid the expenses of entertainment, to some shop or company which has provided the entertainment or conveyance, or in many other ways, provide the object of entertainment or paying expenses is kept in mind. No fixed charves should lips met from this heard. (2) Secret Service: “Secret Service" money is intended to cover rewards whether in the form of cash, of presents such as shotguns or binoculars, of assistance with an irrigation shume, viven in return for information received, or for some other purpose which it may not be desirable to specify. (3) Protection and Rails: The money allotted for “ Protection ind Raids is intended to cover the payment of rewards whether in cash or kimi, travelling expenses, companstury expenses, ute.. connected with spreisl arrangements for the safety of the public, and in particular with the arrest ur prevention of railers and the rescuing of persons captured by raiders. The l'omptroller has been consulted on these proposed detinitions and has replied that he accept them, but has at the same time intimated that the uintier will be further examincel in the course of local inspections with a viuw to suggest amplification, if any is needed, in the definitions so as to make sure of covering all cases.

·113 APPENDIX XV. Orncr EXOHANDCX TROX THE FINANCE DETARTYEST, GUTTAVXENT OY INDIA, Xo. D. 481-Y, DATED THX 1971 DretubeR 1937 SCHECT.. Mulle lounis Committee.. lppropnaloon (mini- Explanations of ranations The unlerrigned us directed to invita a reference to the trumpendation Kado in paragraph 13 of l'art 1 of the Report of the l'ulla Joc,anta fornmutire on the .ccounts of 1935-36 regarding the imjxstance of enxunin; that the ex. planaturus even in the appropriation Accounts are lib arurate and intelli. fible. :.. Iuning this year's twelings of the Committer the printed cxplanations Wrir fun to be frequently inalauate and winietimme mually nusirulina Allow the work of totapilation in done by the sculul vorne tics sit Orconnly depelent to a large extent en information tersvel from tho .... 1-4 . quantity of printed matter which is placed beluro tho Cummutloc, atul they do nuk i to ukatut any modificatou in the working arrangrienta unles which cxplanaton ato nut unlınanly sien for baruluna of lass than arrain anwunt ur funrulage. It is, however, not drasrallo that be explanations FITA in connection with the larger variatiou shoull benut oaly name but als iluminating The quctwas which the Comuuttee will onlinanly ak no (1) whether the Vanatuvu inevitable, and (?) wiceber it could out Larolera forewn. If the explanalsuan islocate with sulfidicat clearens the ADNYCH tu leb of three questions to number of puista un which the Commuter will wind tu obtain sallitoual sforustuu asially frun the segurar atau rauf t.. Drpmartinents alould be sory matenally mlund.

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·115 APPENDLX XVI. Ertset from a polo trom tho Accountant General, Central Rescucs, New Delbl totho Auditor Genual of India on the question of annesuu to cach of the Arca demands of zro furimi uccount of expenditure and receipts. . . در ورود ۱۰۱ 2. I raclosc a lit of main heals in the rantrally sulmatusten arras wuch can be cleans intrinsically passical sa nature It prout a s'atrincat of actual sectiptais apmodel rach appropriatwa manunt lalu.2 to tra Dc marla. Tlicon statements kinerally exhibit the recipes saliva in cach of the courally alımınistered an ... The whole amount of the tripla, 4*10- cold in the slutamente, do not relate lu ile ar 24 (xiprerul Tarracuda alm Mariplx which belong to Central Corrmment firujas For reapple ile a:luvunt shown akunst the heard " Interest in the alale ment of actual pripta padal i firent Dilla al inclulra intenst on fane granted lix Gorrmncnt u lirua to Ixal bulan Della gain, it will loc obwrial that pros un fout rxpanditurr umbor thom Www cuttujuan.linto the pretpt heals alumn 19 th stateur des firmand in the prolina pura raph is mxir 19 serie cases only in the tra le nuani, in vidro, ry, One Workx, Hexcipe in aul of Superannuation Statuberv 40) I'rintenzite, the provun foss expo alature is inube in the cutitapema fret Demeul. In framrl of the bowls "Interest on liriwalkin". Irrit. Lion", "Coul Worker aal " l'rinting and Stiwitery' the dining af ale budget poros 1993 by Amruta in the traperinte tr23.30! Im huncier, mlo m lumiponts unler bols such as "Supernata in un. are anul tenul atll'auments ont ufummutualue of po. The pressen for repetaliture under ellsiter lirate will barn to Art us by popular indreu vurh a dintotusi tule st wir!!! la ci' ult wallwate.xp***.litulr unit thrilen luthir jurta ular areas Firrumple, 1.c entitr ansvnt of graus, au la tua musel valor affront 1 laburt rum tiin 11. 11 in stunt din dat jostan toplam 1). I'm bor. (ertain ('esttal tinstrumento para dar !!! que sous (r4* 0.1 the vitae lis! Av f*:$w.re 1).1!, I'm ve mallrawing que 114393 fot. I'entral as I not. l'r- Ifta pa furint om i to la propand thirdaryo mtr to artmanom of each ifrs will lase tokenthelmine compose or i brile 11. Jenitat Water Innland (.. 1*!!: 1.jul.is I samprant at to them or thirtise music of tt. i.a air dyin! Irrallosh they are talumaa!.rular: n*. !!! **53, It fervuit lui az a let at star brilir ism. Alnind la fix al balira ur. Irrthr Mitost la...meralat kelamies taunsic amning to each Art If three altat are tolerantat a pa tur l'unicare five thr prst pas sublina al alert a... to incwofthir I'mirullatur ist in the motrava!!.. kt. 1x15 asistir partialul.ru strat lavellow'ssimu 11 wil late lutken table is the hero fizin Arras, ut time « Hlut u well u thr mirip'ı mr.frytka: 115 *** in the mistotila v the AT& : ۱۱۹ و ۱۹ ارد ۱۱ د ۲۰۱ ۱۴۰۰ در Ir : t an۰۸۰ ال ما ! 153 داد. با دل ما Irlhi in alty ·116 t. No adjustment is also made at present in respect of the maintenance charges of prisoners transferred from one administered area and confined in a jail in another such arca. Similarly, the services rendered or supplies made by a non-commercial Department of one area to any such Departmcut of another area, is not charged for cither. No adjustment is at present inade in the accounts of these areas in respect of the cost of printing work done and the articles of stationery supplied to the offices under the minor local Administrations by the Government of India, Priuting and Stationery Department. 5. The services rendered under the minor local Administratious are now regarded as services rendered under the Government of India and no allocation of leave and pensionary linbility in respect of such services is now made. If each of these Administrations is now to be regarded as a separate Province, the rules for the apportionment of leave and pensionary charges will require to be revised and the liability of each area on those accounts dotermined. 6. Further, if the centrally administered areas are cach to be treated as a separate Province the adjustment on account of Agency costs for the services rendered to the Central Government by the luw, Police and other officers of those administrations will have to be made as these are not now separately assessed and accounted for. 7. It will thus be observed from the above paragraphs that unless tho present system of accounting is changed to a considerable extent, it will be difficult to prepare a pro forma account of expenditure and receipts for any administered Area. Even if such a pro forma account is prepared the figuro shown therein will not be accurate in all cases, under the present system of accounting List of Vain Houds. Transactions under which in the Centrally iluministered Irens may be taken us Intrinsically Provincial in Nature. (1) Land Revenue. (2) Excise. (3) Staups. (4) Forests. (5) Registration. (6) Irrigation. (7) Interest on Irrigation Works. (3) Interest on other obligations, (9) Civil Works. (10) General Administration. (11) Administration of Justice. (12) Jails 300 Convict Settlements,

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(13) Police,
(14) Education
(15) Sedical.
(16) Public licalth.
(17) Agriculture.
(18) Veterinary.
(19) Industries.
(20) Other Miscellaneous Departmeala
(1) Superannuation allowanco and I'Ruson.
(7) Stationery and Printing.
(23) Macellaneous Chargra.
(21) Expendituro in England.

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·110 APPENDIX XYIL Moto on the revision of Attry Regulations The progress on tho terision of the more important regulations ' n outlipod below: 1. " Conlumu of Service for Chulans passed from the Defence Series Et matra"...-Poul copies of the draft regulatioas have been obtained from tho firest and a final cxamination of the lank is now bring camal vat by all on. ottatul, prior to submission of the draft, with a ketter inlating the onzin of all matter in the lok, to the Serrtary of State The por tables which will arcualpany the regulations have als lern mimpiled and chrchal by all cenccmcu la audit review on the publications W be carried out lcfurr it is wat to the Secretary of State It is anticipated that thir Ik will be ready for submission to the Secretary of State by the end of the srat Slulary Laure Mules (Irudia) fluviszon evinpletel Thewe rzulations were approved by the Sexmlary of State ani) haie 20w been sauce 3. ligulalons for the Army in Inuw - Revision completed. The true regulations have been asun! 4. Pay and illoruwe lingulons (India) Rerum has bero completed and the resuncal regulations have been issuu review of the usual me ulatuns was carried out in conjunciun with the Director of ads, fence Service I few mitters frxulting from thos review are in cours of clantation 3. I'emwn Houns (in l) The first drait of the trend te ulatu. i maniaz completua It * wt ist swssable tus slate with any denter of accuraci wlea theme rrullus mall love my for inue Passche lingularions (Inn) Exuslans friulata. Lave trea ir prutal, Herinci* will le liain lagi ****n de Mutk va ul. list draft af l'amaro Regulations (Iadu) in fiebol i. Finnes lingulumni The loss funt of Finance liruals *** * als ia part of prius 1:41

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·121 APPENDLX XVIII. Scheme for interchange of Accountants of the P. W. D. ad M. ES The period of yours for sluch P W D. Iuuntants urte i.cerchiato with quaseu S. A. &. cloths of the Military cotits Depurinirnt has just cipated. The periodical ne pustis teruned from controlli is on this work on the 1.W. D. Accountants now that the cliana si fertel in the eyaltin of MIES uruunt, as a result of the sukantibus inside is the treountanta, ate of munur portare, anul tlic opinion of Imth the contriller am the 11 sati.com We that nou direct aantage has twaal hrad lastlos de pulation HD .foxuntants to the lihtsry.drauunts Department T?r* tatlerindepquent dig at fint right, unlew one apprriate fully (or koos from ritmuc) how cutremely ditficult it is for an unudul) 1. lue ft**?rlaras 19 4n <tabletes Nyota is of nirwante in a sinist Jux vf! vara anulomasially when the continue of the delittonit jurtu * (Militars Irrrunto 1??urit att J. E. S) ir sential The inability of the WD Iruntant to oftext improvinents in the U... maten of mountin2 diw out this clure, w.dicate that the scheme line fula Vitesses there witr pina Juart af the bene, from this Begurtant*]xint of 10m, was the transfer of Uchule of the Military .Icunt: Deputtant to the Department to burn en P. W. 1). wystem of accounts it in unsere] tt.. then want u the mlien.r to the Deputtant wall.no fruire the water raftutir uni ham lade gained by these nun dunia thuir trumna 1t .jar (tutis **** men bis the lixe utile Entein and thrustaneis lieresad that dira luneda heen interest in learnuna tle 1 W D . ** «Tu. and 1.le such gewal progress that within a war off that f***: tim! of them were entrusted with the rular duties of #Drew... There is no doubt that will their lisiwe 10 uut kaud -10- 11:46 Iran Con will im risuch better qualiteed to carry out titreal CKAN !!! Lo ciute system of maintaamg the UE40*ults and to repariral in tusenta in at Each of the cloths nas noteit won after las resepsion to the Military lewunt. The futurent wat ' W) all Cimaleri fruta buscsptickory oftlim ) YES str. Im intnalucard with Aliantas in the lattro la the fruitio ile liary Inuunta clerho made micral va fi "p"15 S kruuniin pist* elurr 111 thucom paratus atr trinaefuatili ristimiral. Fruin a juruul of the rupts it us ajutat il.at the clas Lavad to !rulta of rapeicture and forskurssituatkais brdrpwindt!!' D. arw that it is distinctly in the stones of the Military lumuutis li*18$&$ w natinue the licere system.aikally

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·123 APPENDDY XDE. Th Nous regarding OTT Blocks of R A. F. Slotts. Tte inluftalwn callal for by the Military sccuucla (untullee tehdy bat la corriol under the fullum 1.4 iubcl. 6) Pr7cm fic in roagertha with the extra of the Ex, want legialalafos ataTolles. (1) Hus of the frein of the Stock Lumia The lleva vasa liek was in allsio ſus formal watk in cos Dectx with the ribbon of Equifacnt Hrgularuns atri Talla clanned down ca Jlat March 1939 airl waly : Filt Sirgeant *** retail to uspt the Ermuat Branch of the Star in the completion of the work. 2. strani (1) the fulluxion piiras Lias been tale noce te juwitana ww ciamidarch by itic Shitary Secuunto Commitir un lle acruunto fur 1953 1936 0.) Eguignnone Taiks. These tables will alww the number of artkle authorise ſur use in each unit, fter a cestun az,ount of preliminary work Lal been done it became event that is onginal lay out required wmic alteratiun uning to the wo defcrtices in the range of storra kohl branou unuta Talles are now being prepared neparatdi, fue fighting umile, supply and repair organisations and maxrllancoua ctia Llaborata And the work is n«ll in hand. Bruly tho pawilon was follows PART 1.- Fighting Unils- 32 Section have been completre, appround by the Gostmontut India and are box at pircus and will be dutributru w utula shortly. 24 Sections are sa couno of firal check and approval by the Gorcro. meat of Iodia. 9 &ctions remain to be completal. It is logit that by the embello of July all Snctiuris will be ready fwr pralang Part II. rales (boxir.g conpurients of tout kits hick-ups aset ulkers completo surmulier) This part is at prexat 75 px? reut. cumprir P'ART !IIlarricane I'mus (1 c., uppsasd mrpur urraldatm.it such as Aircraft Dhjet) All Sriwurus ure lxing colletal and separed lus autoriuimals the Goiconincoll of ladu PART IV-VIILUS Numor'da The table fur R... F. Ila Ikpoi, larro Tuju Exbw attrice the only unit in thu calony los les cuakin and more 15 versuche ap'usal.

·124 (ii) Provision Instructions.--Completed and incorporated in the Equipment Regulations. (iii) Revision of Equipment (Stores) Regulations for the dir Forces in India.---The revised edition of these regulations has now been issued and is in general use. It is complete with the exception of regulations regarding : (a) Accounting for Explosives, (6) War :Accounting, which are still under consideration. 3. Stock limits.--The stock limits have been prescribed in it separate chapter of the Regulations referred to in paragraph 2 (ii) above. Provisioning is based on these authorised stock limits, which are expressed in terms of so many months' peace requirements, and it will be appreciated that the actual quantities representing these requirements vary from time to time according to past and anticipated consumption. As explained in paragraph 12 of the Audit Report, Very item should now be reviewed with referencee to these limits at least once a year. The review for 1937-38 could not be completed in that year and has beco spread over two years ending 31st March 1939. (Subsequent reviews will, it is hopel, be completed annually.) It is not possible to furnish the Committee with a report showing the results of the first review but each Vocabulary Section review when finally dealt with by H. Q., R. A. F. and the Military Finance Branch is passed on to the Director of luclit, Defence Services, and lay instances of laying in stocks in exess of the authorised limits coming to notice through these reviews or otherwise will doubtless find it place in subsequent audit reports.

·125 APPEYDD D Memorandum aplaining the zoning iste The of quartets tually pruinal lur mario1 Bntisho.com and mulaint la (ivm yaartott tv a row. Link ، مامنا أنه Scraf دانه 4 + suonte] Cekerk, lint Charts MEIO Xaju. Yajur fajturlatta. Autori conius vil AMjuare la ter plains al 91) muare ft. so the Lill. an weini bull latina 2. It was found that a ni wibetrnce to the sales resulta mutter in quurten lyin; want lmrause these wire no officon of suitable ranks t-> *kum they could be alluttal, or in curruse payments on account of cuing butun fut infroue quarters. It is therefore doulal that a chain ainuunt of plasticity akould be intalucel into the rulra fut alluimrat of quarters and the following system was crural and enland in the regulations :- Hands of a coreta Latitetit. () (Wataalkle S. usils (Classenstull weteranta 3, 4. or kupite is will be seen fruit paragrapka i abwic, previous to this, Culoach and Lieutenant-Colunch wese cautial to o unuta, ilajurs to 3, and others to . .. $6 unala The hizbor kcales o cantlemeat is allowed of accuta molation 11 available in the size of an others' family justacs it. If an udicet us allulla accutanala. tuon within the funds of the Malus mentioned alnie low not normally puca Any cumparnution lur inferuir quarters in cans were only the lowest Kale Accumulation is Alilable and the ple of the orficer's (anal artanta higher male le 11 allow al comprautun in the shape of propertuare tip fulling allowance pusslet lir actually tenta ritra arcu anulata And the list commanding the statwa ccrtürs to the faceauty bus linas extra atrommulatsun, Tbir nusiim in males of 6 unila atxula, tra uvis, burn aganst the rank of Magers and Captains are a.Insulin : 19 He **c of Mr Najuns an! (sptains, the Nze of whose families aasia the allezucnit of the manunum sale So cump-nuta lumetri air.beable the more that the t:19x114mn anetle ali to 1. In other who trien Irst anuntilation than thir tiainuna tuules o mall fatifind alle is automatralls wantef a wisata n fu want acre.axlatin. To give an in katun the majlitude the ripetalitur 14 tunnin \({vb: { vui vertrt.glun Crafts lol to trợ 3 trọt tº *cttuale in ito #««!ly relal tant. Juc 107 Ain Jerusty 14 hun throw runis it calitate that the total functar, it ta fxwliy ilk 11W x 4.40 WITAD

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·127 APPENDIX XXL Report on tha Rash of X. E.S. Expenditure ia Marth with relerrace to particle 8 of the Report of the Military Accounts Committee on the socoath of 1025-38. Tho fausilmin in mand to J. E. S. cifraditure in March 1937 1.26 Buca explaisiral in jurarnap 131 (pet) Sof the Ippropinatus lectute of the Delenco Senices fur ile year 198737 de marl Starb 1.9 ciferditute, srpurta irro alicate that there was loma a frneral imprunetixrnt, lluenh inacances of late freeipt of all trata and aimiahtrative approvale still cuntinue. Thrvinin aluat toetanect are under tranunattu. The inprure. meut once praskiu yrat i tatenal, tla pe tratar anchamia March 1933 over the averans of the prowuscleien ninths bring half what it was in March 133. Thic numlar of lulle puulin 137-33 relocates that the pursuir of work in the nerounia ubora luas diminished apprecially in the grar as a whole and nutably in Manh 1938. Arimate instructrons halo lwen wuel ly the Military Icewuntant lienrral to cnaure that po mrazstrull of the nulit of bulls occur in Marrh as a direct or indirect result of their straternumlxo (ru hly hall an tnany gain in March 1933 as the monthly asetage of the year)

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·1.) APPEYDIY Lu. Hemoranddal co the duroul of surplus ad obtaista stora 1. In jazragih 31 other kejutt on the darunte of 10 i tha Moha LATT.Icousa (n.attre drutuitlatile la Ilmut Well wisa and orgmust whellire it will le powilile to cililt in the Apt to finuatulco tuunin particular of such stures a bullen niet vil vrtenaibad Uk during this yrat 2. A ritular cury wat inails in 1:32 ulen tlor Military .Irmanta (un mille ruan thr JJ titulwn.revuala for 1:31-3! at after for bare diam um with the .Iulicop Genial it was and that it was not practicabla ur clin darlle Ifur tumule which will lo caplunod lat.:) so pubbi muna, purgating tu i praent the value of niekas nlc:l.nl, in thirdgg.supirulina decounta. laves it was decideiti.al a matematic attual reverwur il. con. Ulpturat alwahl im instituind. 3. Before the salem is replaned it as Torstry to in late 19 prorral terra the finelure fullswol in remind tolle cununatwa ufatata ancilliceulsuleio urrurplus Surplus alon's 59ay lo defined as stuns in curredt uw nich cachine bo uuleed ly the milice arrinal print er anttipala moquire mirna *akin * ferrum se determined on the thorita of racle carry, with durtmanli Alurajn las caldee or to the liability of the Morce lo deciuitabliss The procedure is dead to insure that as far as quawella lops are out daranial unleathey are strutls atrpilus within the farsis of the delic.cx.n. When a unit rrjmurta that it has surilus stops, aluminiufwir fa mo antablodermlo whicther the stores are really surplus de tot. If there are so kurplus by thus imunia lub is sent to the final de la lanual Tranegunst Store Drywal with a view to these utilenas dog! As fat as jmstilne wat hun er utaalutlir ir arvade of supply list of the places that canaried lim dijelo to this maons is nt up to Iris leadquarters, wl.rse them quality of transferring the story to mine other arm of thin Thefat narito The partant in cuplaret Finally if after auch muna torre al ruman surplures that cannot be utili. neral jitupul to dewan ito sumus ubmittal for the Munction of the l'articol de Ouro Amillor cuicultrice of the litary Finance Branch If the authattar att studio that all wwbla cftutslaselkemde tu utiliyi ole of the sturs i Trays Hey are laudel oser lutho Daals Oraniurus white la frutica Linn. halo a a Purchaung OriLutk milletines final. W lut wil.com ftir.cap. t.com in a few jutters miniupini u ** 12 mno viher am Mrked this can lose with it was WICKELT. further click luca in thout that the fluxa of Afr*. un luha caputuo ard like any utlet edirudituto Tapal traje ·130 the concurrence of Military Finance Branch which requires to be satisfied as regards the disposal of the stock of the superseded article. Whero condeninations for obsolescence are approved, the lists of stores so condemned are passed by the administrative Branches to the Director of Contracts through the Military Financu Branch where the condemnations are scrutinised with particular reference to the reasons for condemnation. It is also ascertained whether they result from any tendency on the part of the administrative authorities towards over-stocking. Summarised particulars of these lists are noted by the Military Finance Branch in their records before they are passed on to Director of Contracts. Quarterly lists of condemnalion.--:l quarterly list of disposals of various categories of stores is compiled in the Military Finance Branch and an analytical review thercof carried out. These disposal lists, together with the review are seen by the Financial Adviser and forwarded to the Director of Audit, Dofence Services, who examines the items and investigates any, that in his opinion, disclose evidence of over-stocking, undue haste in condemnation, etc. A consolidation is also made in the Military l'inance Branch of the 4 quarterly statements in a year and similarly sent to the Director of Audit, Defonce Services. Figures of condemnation available bul meunir:gless and misleading.-Figures can therefore be made available in regard to the total value of stores condemncd during a year from the statistics maintained by the Military Finance Branch but the figures would represent the book value of the stores so condemned. Such figures, if shown in the Appropriation Accounts would be highly illusory and deceptive since they would bear no relation to the current or inarket value of the stores after allowing for the periods they had been in use. For these reasons it was not considered desirable to publish the figures in the Appropriation accounts. Undisposeil of stores. The next point which the Military Accounts Coinmittee wished to be examined was whether it was possible to give an indication of the quantities of these stores lying undisposed of at the end of each year. At present the Director of Contracts maintains no separate statistics of this nature and it is anticipated that their compilation would involve an expenditure of clerical labour quite disproportionate to their value. The whole question was discussed at considerable length in 1933-34 with the Auditor General and the procedure indicated above in regard to the collection of statistics and periurlical review by the Military Finance Branch and the Audit Department was the outcome of that discussion. The Financial Adviser in a comprehensive note explained the difficulties and said "my conclusion is that this is i Department of public business in which Audit, Government and the Legislature must be content with satisfying themselves that the procedure for handling the business is correct and that the business is in fact handled in accordance with that procedure. The rules and the actual transactions are as in other Departments of business, open to thu inspection and criticism of test Audit."

·131 Thu *** spirito liy ile ulator General whose *** the fact are wt vul is the follows atract ftvia the Proprio of ile Hiltary In Committro, trptialuced bbw:- **The Juliet Grgeral astra requested to dral with fantajab 3 (8) of lus dilerr traling with the quatwa of the potrjutatua and Liliiusa of a blur slateurnt of surplus and weis worta *Pilken of. Ile capluised the ability of sluitlo salocul pucka fotra. Furune thir.gul d.l.cult to dyl.at is the affect Valuation of surplus slon s anal fur anular tlie un tal cost 15 shown it woull cuntcy a inisiraalidzinin ... Loreitt. Lo roland that it *21 exrotal that buth the Audit Isartment La tlo l'ullic lccoun.. Cummitteo akould liar mume durc... tiun irganding the du jusul ul Aurplus atu wbwkete aiuto La was consulering the purstun of the forejuration of the box full latiace, les prosimunal view was that the Silitary Piras.co Branch shoull carry out their prescat detailed rutiny of exch sle in of surplus et obsol te stures put up for displnil por para a convlulated statement showing the value of sturu declara! surplus oe ulomlete quarterly are subit lorem li surtal.va of the Auditor General through the Director uſ .Judit. Dhe Irace Sticra. Tlo blatement is tu lo supplemenind as tray be force Mary by capolariatury ruinatis and cultihichts un fusinta of financial imgurtance Irrestul by mrutiny. It suitable intervals aa subit ressew woull Le conluchelanie niet lululai brier Director of Judit, Defence Suis, in lus annual reiwit, raub purchases und lasty Juxanlunkin Doney! thieten. The static was anund that surplus alucha woull leishen this account wlica placing fresh unters for starteris T. lulitur Citral cuplural that as the annual pruri lalua 13 the bulat fus carniture un lurra was laul on very elaburale cekulations whicla tuwe uia account the balances in land including supilus suchs, there 24 en Automatic check un neku purchaus. Euro 1931-33 the system uglev løy slim ludilat Gcorral of Buskerm in particulars of surplus asub vasto plotis tuwa up frutas tano tu luar, aulablo to the Julit Degustine At Luis leo in furce atul facial report 14 balold in the Judi Regwit of tbe Dincer the lui, lesna, La He sabject

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·133 APPENDIX XXIII. Tl.c karts of the Sulian Itlantry Crut le ſur rue at fisk. toprilire with thuse of Ilir aning om.uay anul tl. supanua file liral artera de traitus: hattalun in Itulis at frusinf (tun ile We are by bath of tapetain tales. The rates for ilir 1486, Sun 13313 in clolatr»nt u thr pay of Brutal for an averan staruut luate www.al" ve mislili lient sifa wait. Butir: the primanjarottle fatto ulnia to Ocena actually in in the Intian trin anulni toime frutally Laber than thie" .rmal" ratio wtv tle cotitur.uri um vifite lattro for purins of the reputata fatrs tilted in an unicolare again the Was Once unng the Ink lalf of the junyjurnaut 1311 33 1.r Liut w..ch **slen minat llung Kong luas, be the onl. 126 lkin trplaced by Authors in which the ratio of Motor to junur oficirs 14 mitrulat iw but tlc "munal" as the low mules by Inilun Iesrtues lutine tl. Gnt later "}nyue Imp.restent, lk tua ini in tuttually eserifowed to be To. the net. uruts us tsis ... 136

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·133 APPED TWY. You meaning the mechanisation of Ondassa Factory Accounts submitted to the Mitary Account Committee wild relerence to praise of this Cosimordial Appendus to the appropriation Acconais for 1008-37. Thon" naerlanjutia ul armounta" Pesjies of the Illiming itens of words innleaner Au Chitling kutsus was cumprar] lutuen I tolms 1936 wird unwt 1937, 178,- (1) Worknuen'. i'ay rulle (11) Cunt auecunca, am (141) State situulits, the "mal" )«rn 1 noyact of cards of this alwlo ilonus lavinis laxen dikcontinul a afirma.cil wasure, Onnut latin leature of mushanition wil.orferlinup of the various ruuntaan! Lalulus luneda of lus teiul seal juwilile Totaan om inlaire, the " Cost Cant " whicho kilico tlo Supinirmicut of this two decade, an fer certain clacu boals of all the **j*vlitur iu dusi a tux.ch on thr vanus ta kiul Jitunewsfinanufacture in the las Lis Factory, in rivow at tulum, positiland willie Bordur Sinetron the min! and thuru wrth of the following mouth, wiens utlet o 1.20 Apateun It ward to take almut be lo twise with after the cline of the neth blac), three lax Invas convertir nun in csjurulitun as a frault of Mixcluniatiua. It is vatnatal that the recurrira wiing will te, on an alten , the willwurku) of Na. 334, (NU) ju? Alipun The following talle boustratuleejuruliturrit.carmlunteer Excalledteat ronfilosal to 1933-34 in the Branch (d.cos vf the (istrullt um For. tory Accounts in all the work that and to be done by tanul extlal, ata ibr cxjxsudature actually incurred during 1937 11 on ile star itens of wurde dir the junt nuanual.cum-tuet Lanral matema بابا بجميع مدار مردو وهمnt ماهر وها) Atualarla 1313 31. tulevallania 331 . A. tem of work hard hot me hen wachs. &. lum ofnod hood dute e ben meedaw w 146 240) 1841 1: Anoplasia 17 Actuala 203. 45.000 ·136 1933-34. 1937-39. 5. Iters of work shick lure since been reckz. B. Hena of most schich hard been wchunised Disc 49 Opkratairs 13,000 145 clerks :,1),(0 | Iccountant 13 .iccountants 70,000 3 Clerky 1 osistant .lccountant 5.000 3,12,000 Inferior establisument 1,000 Ilire uſ chines 37,000 Cost of Cards 10,000 Contingencicy Deprciistion 2.000 .. . . 79,000 سعی .1 .letual pay of I clerks aaved in Vain Onlice 17,000 62,000 It will be seen that though the sum of 301 thousand rupecz spent in 1933-34 on the non-mechanised items of work lad to be increased to 19:12 thousands in 1937-38 (due to the increase in the volume of work carried out by the Ordnanee Factories), the expenditure on the mechanised items of work has fallen from 312 thousand rupees in 1933-33-4 to 62 thousand rupees in 1937-38. The actual saving is, however, more than the difference between 312 thousands and 02 thousands. It is fairly certain that, had the Manual system buen continued, the staff employed on such items of work is have now beeu mechanised would have had to be increased by about the same percentage 38 was found to be necessary in the establishment employed on the non-mechanised items of work (viz., from 301 thousands to 192 thousands-nearly 65% increase). llence, but for the mechanisation, the manual cost of carrying out the work now mechanised would probably have gone up from 312 thousands to 498 thousands. The actual expenditure incurred is, however, only 6.2 thousands, giving an estimated sisving on account of mechanisation of 1.30 thousands per annum. We have, however, indicate a conservative figure of 3,38 thousands per annum only, as this latter figure gives the finuincial effect based on standard average costs of personnel, while the former is based on actual costs during two particular years 1933-34 and 1937-38.

·137 APPENDIX DXY. Foclat reicy on Quella Reconstruction tor 1923-37. It is loca surate that the Military .Ireuunts Cumutter un W lain a Gnancial review of the Qurtta Incursiructwa lori luct, bralcm Cutzuating on the cxponituro actually citrus Junina 117:37, wuull gain lirief account of the goesis of the project was the princu Hale dhe with duning that year. ... The earthquake in Quetta ful place on the JIxt of May 19:33 uly 198 an intisadopartmental Curnnutter On.fomy of a fuperpotersia 10*** of the Thliner, Fumane, Issay asul Forring all Pobaral Thepunt m.ents was appiated to examuut aru co onlinair requirzut nis of the Injurt trients cunement. It wstulate that thure would be 10 najor chaos of Ix fence gulicy as a result of the ruithuuale a:.l that it would therefore le arranty for the Irmy to hereupy Qualta in much the Mamzar tra that Irosiously. The Canin.ittee wolm toquimal to make peronunlar* 4* to tlan langer in which the toquin luntx assult Le ti.rt, trallin a rule rain of the cont inschat, anul to numit the parent user wuch thr (ami.wall Ir spread. So far as the lettre requ.tr neats urre cuite end the Commutero re. cumiuruled that brouilly strahu; t. nam arxunnulatun an cuir In ſure the carthquake Lou!! *** pitutured on the rent alle 1. $ Na ratsinaud At Latent and i crutes of rupaca solferind of nut lcas tan 0 years wus malol as tresury I complete the project. It was ern- Jakakand log thue Cununity that in determann the ſwivrity of the fils beltiler] in the project way olvull lile kuilina prila.file 3. 1 4 rult of the studere's trening zulatus**.:' urlr werkt ally the Garconstat if lil thr I Sive authoriti-* wife pt to put cout with there forfraldua ile ulats ani dlakal... ferry lu carry out the potamne towaru wa awa:el in the Pt. It was denim to catrul Ihr wehlatilah I the Darliurhisanthe (ual Ikyatment in the N. E. S. while would be asspill.2003 for the purely the abolition of sente nuntas fast draftlixa. Sunteyrt of Warka etc. Twu (muniter the Central Qurita Hrubrutaan (onurin at In bijuarters of Giuncsent hird thin other laral Qu*fta Hrastructuur Cursnition with leuwatters at Quritt *str fun to deal with the cu unitetin e trquitriumnit mul ele formulations of ulicy **1.lm on voit the fruitt nesta of the same Ifraen hutsasiet. maith le luni at Qurtta. ustnin; knual ani talural bulunan hingele playitunk, mel anl Irainant. aut all turules of an up to late (sans nt wat jistgurat in i sulmiin lip this apj'sus al of the vir Lalyf sute fut ltalia. The estate cani to that partytet akuzual to ap fondatry i cnfis of rupees which at laporan y ropusnad of aluat i Stars. The Sun by Swin' Artistik i thu psuni si ricrunden it 3xb pul 13.

·138 4. With a view to securing the most advantageous tenders possible as well as to avoiding administrative difficulties it was decided to divide the project into fairly large groups, each group consisting of a number of associated buildings. The first batch of coutracts included 5 such groups and covered a period of approximately 3 years. No contractors were allowed to tender for less than a complete group. By this means it was hoped to ensure that only important and reliable firms woull be employed on the work and that their operations would, as far as possible, be so arranged as not to clash with each other. 5. For a number of reasons it was considered a matter of vital importance that the reconstruction work at Quetta should go forward with the last possible delay. part from considerations of policy, which alone rendered the project a matter of extreme urgency, it was found that the provision of temporary accommolation for the troops and others displaced by the carthquaku and the grant of concessions to a large number of civil ani military personnel were both costly and unsatisfactory expedients. On the other hand owing to the namitude and complexity of the project the preliminary work involved in settling the general lay-out of the new cantonment, decidling the relative priority of each of the numerous items contained in the project and preparing plans and designs, was so enormous that had the usunl procedure for inviting tenders and placing contracts been followed there would have been no possibility of making a start with the actual building operntions before the year 1937-38. The necessity for designing the new buildings so as to render them reasonably earthquake-proof introluced an additional complication that tended to hold up progress with the preparation of detailed plais. To avoid this delay it was decided that in respect of the first stage of the project recourso should be had to a method wliereby it would be possible to call for tenders and conclude contracts for buildings that had not even been designed. This method, although now to India, is one that is sometimes adopted in respect of large projects involving (ns in this case) a good deal of work of a repetitive nature. 6. Put very briefly the method is as follows. In cach group for which tenders were invited a certain number of typical buildings were selected as 'key' huillings for which designs and detailed drawings were ready at the tinio of sending out the tender invitations, The tenderers were required to quoto firm lump sum offers for all key' buildings and others for which detailed drawings existed, but for each of tle remaining building they were to quote a provisional lump sun and also to specify a key' building of simi. lar type with which this provisional quotation should be associated. The payment that would actually be made to successful tenderers in respect of such buillings would be determined on the basis of their sira quotation for the linked keye' building. For the purpose of calculating the sums payablo in those cases ill unpriced schedule enumerating all the detailed itenis of work entering into the project was prepared by the JI. E. S. authorities and sent out to each truderer who was requirred to return it fully priced along with his tender. 7. The precise meslus operandi may perhaps best be explained by a concrete example.

·130 + IA particular group let us support thest cogirartor telemet lump sum of Ra 19,000 fut a hey buildina l'il a pourmaal lamp ** of Ila 2.0lut a bullinan '' fur which to drain asing di Lara Mul out to trulcnt. He wuulj also have sulmo a fully pocetkule alog with liit toruler. KWA as the door and Jilakıl drawings fit bulling 'B' Lullres skal lalb w quantities luz ta txo ball woul) le prend of the rain caterol by the contrator in lus kabelule lat us suppe that the of quand la for bulling 'A' whira a potard steal to lls 14) 3.1 that fur Lukin' BILA Then tło lung am pasalile wler t- Guitat in tret w building B'woull l (31) 2016 uk , + 14, 2013), Another way of liing the arratsant is that the cuntraler under tok to carry out the contructwn of racl'hey bullies and the builders linkaal by him then to at ratre afrin at ly aplana to be wl.ralulr tatrs 11.c fructus (9,10 in tl. hay quothetical ram illen alar) trpaolinithia proportuit lorne by hit lump sur quatwa lur thirry' buildir todas Anwunt of the wall of quantities for that builling wica pticu alte con trutur'. A belule rates Idret fractain and of course to luxushni out in irret of each dry' bullin This knes the basika ofilin thru lopiral though these west number of detailed promicans that come to be some in thu triarw 8. From the foreman bridescription of ile mrtkond of te oksju? it will be clear that it did not intake the fracral olaruloont of the unus) mlrmuarls. The rettal is in fact quite a freonixol uso in other culaince Arad its only drawback appmars ? Le that tlcro is mure uncertainty marad the actual Anunts )able unuiler cuatraria at the tune of catering into thrin than in the case where contract cuiululed on the mute wusl litra are cura. The contracts comptwip; tio font lacks, which aludna tle parmi out uuder this *)atera, cuirted with the auch alle tusimain al almut Ilm. 133 lahlı 10 projet estimate au was designed to an pernul of 3 years from the lat ipal 1939. Althusab C4 Pirtein that 1.1 cicatually lo ale under the cutitraris canaut te rixir a rtlward at this are, t..cre la primi trawn to blaie that the full Antwent of 5 Iyarota will not cicond this clinate. Gracrally mwaliteit vull ar as if tle restructible to run the frutalace of the work tuse pruirllule irry Mintury fium Gorrasrat'. pwant al view and thero a ese midis to lxbris ikai tissite pum ide cualtala len lerrel fut we carte ( rette wurk ul ure men nubitulls color omislite *** 19 leirs «Labdam linditride cle., Lat rurm during 19353i. The prerial cut of town and trus u vinuti to in respect of any kica contracts for the project.

·110 9. It will perhaps be appropriate to refer here to the four instances given in paragraph 38 of the Audit Report in which it is suggested that the interests of Government were not fully safeguarded. Item (1) refers to the price of cement and suggests that as the offer receive ed from a Cement Combine to supply all cement required at Quetta at a reluced price had not been formally accepted by Government by the time all tenders were due, steps should have been taken to ascertain specifically from each contractor whether the tenders were based on that reduced price. Thu JI. E. S. authorities maintain however that there is every reason to believe that all the tenderers were fully aware of the Company's offer and in their own interests must have allowed for it in their tenders. Nevertheless it would perhaps have been more satisfactory if cach tenderer had been asked by the II. E. S. authorities to confirm the assumption that his tender had been based on the reduced price for cement. Item (2).---The rate in question was it is understood a manifestly absurd one which would certainly have been corrected in the course of the preliminary scrutiny of tenders had it not been inadvertently overlooked. To have compelled the contractor to carry out the work at this rate woull have inflicted a severe loss upon him which was considered inequitablo. Ilcm (3).--The items of work referred to here were not such as could be linked with a ' kry’or any particular building, being common to a number of buildings generally of widely different types. It was therefore not possible to associate any one fractional increase or decreaso (sce paragraph 7 abovo) with works of this nature. This dificulty was not foreseen when the contracts were drawn up and the local authorities therefore agreed to pay for such work at the actual rates as entered in the schedule. Their action in this matter has been confirmed by the Government of India. Although at the timo it could not be furcscon whether the adoption of the actual rates would be to the financial advantage of Government or the contractors, the J. E.S. authorities now maintain that Government will eventually be found to have had the best of the bargain since generally sp. aking the fractioni in ques. tion tended to exceed unity which meant payment nt rates higher than those ent red by contracors in their schedules. Conclusive evidence in support of this assertion is not yet ivailable. Ion () (). Although the special construction of buildings for the R. A. JI.('. and I.N.C. Institutes at Government expens i not normally authurised since surplus accommodation can usually be found for such institutes, in the special cowlitions obtaining at Quetta where no surplus buildings could be made available, the Ciovernment of India ilccepted the necessity for providing such buildings and they were in fict speu fically included in the aul. ministrative sanction acorded by them to the project. In those circunstances it is open to question whether there was any necessity to obtain separate :anctions for sarh mrmally 1.uthorized buildings. In the Audit Report it is suggestei tilit ill underst:miing xisted to the effect that separate Govern. ment sanctions would be inderd for all such unau hori-edd i cms, but whether such ilu understanding exited or not canno now be ascertained. In any ·141 com blame allarbra to thin local authontus for, sier on the authty contain in the wiministrative ajiptural Hirm () ()-. sranla the mulructwa of 15 (law D quarton, the **s cortainly imulat and was due to a misalo in the part of ile loral u. tlunsari Furtunatels a large numls of such quarton las v.1lokprel upan I thrro will in 1.o difliculty in ulura Ilir 1 quten ainst ilm widownal murricate 10). The unniaal bulat all meat fut expenditur oa Qucila Piruliruca tra dunn 1937 37 was ik.31 lalls It may kerel taratul that alth hur far this giratos fuitwin the exprültüte delustalle w lle 11:-Qurila Pinstructa si n latex la riprokturo la Quetta iholf a shall purtand run. the qual of hulle muucted at oller sfatuat for oriun units wai Catalır. duplaaned by llorarthquake The prufuria of Illalls is 193-37 mind a num of 1L 11 lakh fur buildina paratient acumbiwa at (halala sequitulliy an II.1. H. unit lololat Quetta at the la..muftharanb. quair. Owing to an unlumrwyn delay in the arquantoun of the ele this ye? of the paramo vull not be carnal out during the year This acant el for the bulk of the deflrrrno Extween the unniaal grant and the actual riprolituro (. 38,63,000). Furthice delal explanalmas of this difference are frien in the Appropriata .lcovunta The built allvement for work door at Quetis dunnz 1956-37 mounted to 12a, 31.17.00 Julguns froin the fact that there was a nel cost of RA 300) only, it means trasunable to conclude that the antrul of captisture Was markably licent. 11. Irfon frunstructurn could start the old buildin hud to be de mind and cleared. This work was cual under departmental arranc trata. By using a type of Kamier lome wluch hul lemno obalete but wrm rnuunt for this rough work the aist of clearance was kept down to an airran linuro of 1. annas a ton. Salazad instead werd bed in the mastructuta of temporary arcumnasalatwa anl uſ auch gertaansat wurk 33 mnir drains in wlich ourable bncks mull lo incumparalel. Siirt work 1 . : ul grtting og with tho xunstrucuva there arms to be no dubt wat all pusullo slope were taken w kap dora circaditure to the Lowest point blolatnit. WIDUTSAD

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·143 APPENDDS XIVL Annual Certiicate of the Quartermaster General la loti I «stily that un 31nt Slank, 1934, ile watcxncs of Sioms autkunud Ly the Guverans al of Iulia tu le kell al dato for the mobilizate of the Army in India, and detailed in the pulllicul Wat Equipment Table, of pro vich fur under facific dictions, ſur the putus Pub and maintenance of wback I am responsible, were curupilete to the extent to which the quantifica rourollare lurn calculated, with the exception of ductuatiuns mal utko maintenanıc of such sunira, is to alottae and dcficiraars due to raniwan alteratum auch America, the wlpuntirust of whxh 15 10 hal, and with the exceptuana ahewn in the atlarland Stile cur The 30th May, 1934 11. MOBENLY, Lindl.-Gentel, Q*XX Grand Ansure lo de Certifioue, duind Boch Slay 193.9 Y chuclu - The deficie cien in the author ai munkan u L T vehicles to Lin held iu mobilizatwn rrune: (6) Mowe tydea, auto Restamata of India Carely mugimeal Na bakalse" y " Batuary R.I.A 6 o) Unler fur 30 Nurton miorcycles, sulo, Lale bron polucoel ( Law, CL, Galeria (•) laluation, Illas Dublin 1936.37 (1) Mochanisation of Draught Calie serena, lurra digrals 4 Ir Mechanisation of "F" Battery. ILIA 3 (4) lalul Ion All Cars 1839-39 . IS (-), (6) mai (). The deficiency will be set tuo tło lypo 15 lurras which wall be released by Cssalry Unise IT Cumparare un film casal br der (c) Tho drticuency will be met when the 11 kmes on une is a foc 10 with the existius "" litery I HA, will be delivered (an) Lamma de afache The deckticy will wt betale for ·144 Jubilization equipinent of supply units - Statements shewing surpluses and deficiencies of equipment of supply units have been received from all commands except Westeru Commaul anil have been forwarded to J. G. O. Branch for costing. War equipment for P. O. L. Seetions is being provided -funds having been allotted. nimalo 250 J. 1. mules are defic.cut due v the fact that these are purchased in America in ihe cold weather and purchases under current Budget estimates are not made until next vinter.

·113 APPENDIX XXVII. Annual Certificate of the Master-coeral ol the Ordnasco la India I crstify that on 31st Many 1933 1. Tko mobilizatwa nuijisent and clutka autbuns to be hell for the swellization of the Amy in India anul detailed in publubol War Esquam incnt Talles was cumplute to the extent to which the quantitius lavan pourpled with the following carriwis (a) Fluctuations due to the nomal inaintenuur of such cyumrat (u) Deficacies due to a fire in quella Irnal oa theith Juan 1337 win a cungderable strouhl of ato ducation qui est *24 destroyed. ".. War maiola naucu Hernia ditallal 19 published 11 JR State Bucala, aiul wlicka luare besar purutuled, were complete with the cxcrption uf ductuations normal to the roaintenance and turn-vict of such tranics The stocks of 18 pr. ammuutwn lell donut (user the requiremcats of Royal llors Inukry Batteriet sluch arr trburanls animal mtb 18.ff. cuirnicata whilst the questions of thiru narmancat is stul usulcr coruxíucrae ton. 3. Materials and mau fully manulatural articles rjcially set apart of proualel from within the factory builget or frutu funds fun wils alluital ar complete: als beula unul machinery frusalul fruiu anis pecial allula.cat of fuoda were complete. Calculation of deficiencies in the War Maintenanco Flexcruca of Onluanic and Clothing Factories is in hand. C. C. ANUIT.IGE, Licul.-General, Uluslar-General of the Ontrance in India The Jay, 1933. HIGITDAGINS