Coll 28/39 ‘Persia: Printed Correspondence 1929-1936’ [‎155v] (321/1174)

2 The new budget estimates revenues for the current financial year at
seven hundred and fifty one million, one hundred and twenty three thousand,
foil] *hundred and eighty seven rials (about eleven million, five hundred and
fifty five thousand pounds at the present exceptionally high exchange value of the
rial at sixty five to the pound), and expenditure at seven hundred and fifty
milhon, eight hundred and twenty seven thousand, seven hundred and ninety
rials living an estimated surplus of two hundred and ninety five thousand, six
hundred and ninety seven rials (four thousand, five hundred and forty nine
pounds). The budget estimates for the previous year balanced at about six
hundred" and twenty one million rials, so that the increase in both revenue and
expenditure this year is estimated to be higher by approximately one hundred
and thirty million rials, or almost twenty one per centum.
3 Increases on the revenue side include an item of twenty six million, two
hundred thousand rials (about four hundred thousand pounds) as proceeds of
the new monopoly tax on- cotton piece goods—a useful item when it is recalled
that an increase of the Customs duties on cotton piece goods is at present pre
cluded by treatv stipulations. Income and stamp duties are expected to yield
an additional fifteen million rials, Customs duties ten million rials, the Tobacco
Monopoly fifteen million rials, and the Opium Monopoly ten million rials. A
net increase of nine million rials is anticipated as a result of the substitution of
a three per centum, tax on agricultural produce marketed for the previous
taxes on land. Similarly, the replacement of motor registration taxes by a tax
on motor spirit and paraffin is estimated to give a net increase of ten million
seven hundred thousand rials. Other budgeted increases are fourteen million
nine hundred thousand rials from the operation of a tar factory An East India Company trading post. , four million
five hundred thousand rials from sale of state lands, three million nine hundred
thousand rials from the Caspian fisheries, and one million five hundred
thousand rials from the working of the red oxide deposits. An item of nine
million rials unforeseen revenue may possibly be connected with the institution
of an import monopoly for motor vehicles or with some other monopoly scheme
not yet disclosed.
4 . On the expenditure side, by far the largest single item is the vote for the
Ministry of War, which is higher by twenty million rials. Including provision
for road guards the vote for this Ministry amounts to two hundred and forty
nine million, four hundred and eight thousand, three hundred and. eighty rials,
or almost exactly one-third of total planned expenditure. A special credit of
two million pounds for military supplies voted in the supplementary^ budget is
not included in this figure. A, special credit of twenty million rials (about three
hundred and eight thousand pounds) for road construction indicates that the
ordinary revenues from the road tax (which are not shown in the budget) are
not sufficient to meet increasing needs of road transport: For agriculture a
sum of twelve million seven hundred thousand rials is provided ; last year the
Departments of Industry and Agriculture were joint, and no separate vote was
shown. A credit of ten million rials for industrial undertakings is only
twenty five per centum of the amount voted last year, but separate credits of
twenty six million two hundred thousands rials for a cotton spinning and weav
ing mill (presumably the one at Ashraf for which the order has already been
placed) and fourteen million five hundred thousand rials for the completion of
a tar factory An East India Company trading post. , bring the total to about ten million rials more than last year.
The contribution to the capital of the Agricultural Bank is increased from five
million rials to ten million rials. There is a small increase of three million,
four hundred and fifty thousand rials in the credit for the Ministry of Education.
Finally, the following items for capital of new State monopoly enterprises are
included ; thirty million rials for a Company for the stabilization of the price
of grain ; fifteen million rials for a State Insurance Company, and two million
two hundred and thirty thousand rials for the recently formed monopoly
company for importing cotton piece-goods. The only r important decrease is
in respect of the non-recurring item of eighteen million rials voted last y r eai
as capital of the Opium Export Monopoly Company.
5 . Comment on the new 7 budget is on the same lines as last y r ear, and is
typified by the statement of the President of the Mejlis that he did not see a sign
of disagreement or opposition in the face of a single deputy. Details of the
State Insurance Company for which provision is made in the budget, have not
yet been given. With regard to the stabilization of the price of grain, it was
stated that this was intended to secure for agricultural producers a fair price
for their grain 5 as a. result their prosperity w T ould be increased, and as a