Page:Indian Journal of Economics Volume 2.djvu/597

ECONOMIC DEVELOPMENT Sources of Punds for P?!blic . When we come to examine of funds for capital find there pluses, (2) are but the profits paper currency and The first of these, the past an important source of either by budgeting for important the expenditnre three :--(1) current of coinage borrowing. cnrrent Wo?']?8 possible sources on public works we revenue sur- and of issue of revenHe, fnnds has been in in two ways, works, particularly those of a non-reproductive character to be charged on revenue, and partly by utilizing revenue surpluses for this purpose. To a certain extent it is right to utilize not only revenue surpluses, but a regular charge on the revenue to construct works. It is good finance becanse it acts in .the same way as a sinking fund. The policy I would recommend would be so to increase taxation (by a small amount)as to make civil receipts and expenditnre balance, and to regard the profits of the Commercial Services as a fund reserved entirely for'financing new public works. This would be required for use in two ways: (1) to meet losses on works constructed out of borrowed funds in their early years before their revenue is matured, (2) t? meet the capital cost of constructing certain works. The snm available for the latter purpose might be from 10 to 15 ereres per annum. The second of the above mentioned possible sources of fuuds is the profits of coinage and of the issue of paper currency. The profits of until the rise of the price almost to nothing a year or so ago. coinage were considerable of silver reduced them Now that the rat? o.f exchange has been increased there is still a small profit, either on the exchange or on the coinage, according to the manner in Which the book-keeping of the transactions is entered. T.he profits of coinage have been so large in the last four or five years