Coll 28/3(2) ‘Persia. Financial situation.’ [‎212r] (423/817)

Hue cortf ^ c g ^
E 'iosi A+^^/x s •
No. 82 ' . I 1 A i 9
52S/1/45. . vJ^W'’' ! -: ‘ —
c ^eP ^ >/
With the tdrw.ir
3x*C/,
4- 4-
Sir,
ws*
li itish i^Enibassy,
T12HRAN.
With _
of> »■>»? ^
Undof Seot etar'y of Stat#
X luve the honom* to refer to iffy ueaoatch
15th 1 o^rch, 154.5.
4 A 1 " 1
IUD1A
I. fl'
— —— W -»• w ^p—• w«» ww — WC IT jT»0#4fc02^ / ”* #
^,•> 2 / 10 / 44 ) of Jvme 28th. 19^'. r o oncer nil ttehu^et Oue., 3
Wn -<**v»'C*iam & ft'—
>€CA
both tile Ordinary and Coraneroial budgets) of the lersian
Govci'nment Cur the financial year 15 Mf^V 5 (beginning on Tfaroh
21st, 1944/ and to state that the Ordinaxy budget for the year
19^ 5-46 has recently been pi'esented to the !> Jlis, Detailed
figures of the budget are given in the enclosure to this des^atch,^ (y
eJLoin^j
A-4
Tliis budget baliincea at /+412 milliort rials. The
following figui'es, covering the UrtHnary budget only, show for
comparison the out-turn for the finaneici year 194 . 3 - 44 , the
estimates for the year 1944-45 ana the oat—turn for the first
ten montlis of tills year.
0 . 0 .
57
4
kill ion s of d ij i a.
I^Vj-4 *- vctu.il. 1 94W^ j.s tijiL.t es,
ActU-i,
Kx^jenditut'e
Uevenue
3697
+ 683
4569
- 611
19W-45
(first ten m o nths)
3200
-2L2L.
• 17
It will be observed that the figures of out-turn for the year
1943*44 differ from those given in iqy despatch of June 28th, owing
to certain cor. octions and adiuatintnts subsequently ut.de between
tlie Ordinary Laid Con* orcial bu<4;et3.
.'cia.
ioV;<
3. It is to be noflied txiat the Ordinary budget for 1945-46
is only balanced by the transfer of a hypothetical surplus of
500 mill ion rials from the Oormercial budget, which has nbt yet
been prepared. TIwj estimate of 885 million rials from Income Tax
during 1944-45, which has proved to be much too high owin. to
passive i*esistance on the part of the taxpayer and on inade quate
system of collection, iias been wi'itten down to 644 million in
1545 — 4 b, which will still be too higli unless the law caii be more
strictly enforced. This figure jrovides only 16 per cent of the
estimate of total receijits. Indirect taxation (including tlie
monoxiolies on opium, tobacco, sugar and tea) recounts for 50
per cent end the .hngl o-hei* si an royalties recount for 12 >er cent.
The estiiikj.ted revenue from Posts and Tele-y&pha of 120 million rials
will not cover the expenditure on the service, which is estimated
at 145 million. The budget Iso includes receipts of 125 million
from the public domains and ceded properties which previously
farmed part of the Commercial budget; expenditure under this liead
is estiiaA.tod at 76 million for the year.
4. The expenditure aide of the bulget is divided up nnrth in
tlie s^no proportions as in 1944-45. Thus expenditure on the Amy
is estimated at 1100 million rials or no less than 25 per cent of
the total. Amy, Gcndnaerie and Police expenditure together
account tor Just under 40 per cent of tl>c totfil. Administration
of the tobacco and opium monopolies is estimated to cost 550 idillion
rials, repcesentin- 11 per cent of the total, while the Ministry of
finance require rather over 300 million, mainly for tlie collection
of taxation. The pore c nt a •jo s of exrenditui’e allocated to
Education and iiiblic Health are res^xjctively six and three,
altxiou^h it is true tlk^t tJiere is an incre ise in ex euditure on
hd.u‘cation of 25 per cent in 1945—4<> ^.s against the afcj|ousIig E ye33 r
d with 240 million!. ^v^rPoL.
T*
(300 ndllion ccrrrxvred with 24X) million).
Go^vLujA ts ^ a. ^.
B£P|> |
APR ' r. V(P
INDIA
fTlCE