Printed papers on the political situation and military policy in Egypt [‎44v] (88/176)

30
139. Although the grant to the Egyptian Labour Corps Fund is a legitimate
addition to the reserve, since it is balanced by equivalent recurrent pension commit
ments, it was a windfall in respect of the particular year.
140. Besides these savings and receipts from sources not included in the
estimates, the actual yield from the estimated sources of revenue exceeded expecta
tions by £E. 2,525,000. This was principally due to increased receipt from customs
and railways. The profit of £E 221,765 realised during the year on Government
dealings in cotton should also be noted. The funds held by Government also
appreciated during the year by £E. 587,000 which sum was also carried to the year’s
receipts.
141. These four sums of £E. 969,000, £E. 1,989,000, £E. 2,525,000 and
£E. 587,000 made an aggregate improvement of £E. 6,070,000, which after covering
the budgeted deficit of £E. 1,981,000 left a net surplus of £E. 4,089,000 to be added
to the Reserve Fund.
142. The heavy deficit of the financial year 1920-21 was attributable to
abnormally high expenditure upon salaries, food supplies and coal.*
143. Part of the increase in salaries was granted as permanent addition from
the first, while a further permanent addition will result from the application of the
Cadre Commission's recommendations. Excluding the temporary high cost of living
allowances, the Government’s bill for salaries and wages amounts in the current
budget to £E. 10,866.000, compared with £E. 5.360,000 in 1913-14. The sums granted
on account of the temporary high cost of living allowance between 1917-18 and
1922-23 are as follows :—
£E.
1917- 18
1918- 19
1919- 20
1920- 21
1921- 22
1922- 23
327,000
1,252.000
2,564,000
6.082,000
3,823.000
2,500,000 (provided).
There has been great delay in putting into effect the Cadre Commission's recom
mendations, partly owing to the intricate and detailed character of the work involved
and inefficiency in carrying it out, but partly also to lack of co-operation by depart
ments which were dissatisfied with the proposals. The regrading of the high posts
(directors-general and upwards) has not yet been attempted. However, by far the
greater bulk of the public service should be regraded before the 1st April, 1923, and
if this is accompanied by a continued fall in prices, it may not be necessary to make
any provision for temporary allowances next year: in any case the provision will be
much reduced.
144. No full account has yet been given of the Government control of supplies
and purchases of coal, in both of which there was considerable mismanagement. The
Financial Adviser in his note on the 1922-23 budget expresses the intention of
reviewing these operations wdien they have been finally wound up. Latterly the work
of the Supplies Department has been efficiently conducted, with the result that in
spite of conservative estimating, and the unexpected heavy fall in prices, the
expected net deficiency on working from the 1st April, 1921, until the winding-up of
the Department has been reduced from £E. 672,000 to £E. 373,000.
145. The full demand on the resources of the Government occasioned by the
abnormal purchases of cereals and coal has now been felt : that occasioned by the
former had also been absorbed and the Sullies Department will shortly be abolished.
There still, however, remain sufficient stocks of this coal for use until the end of
1923-24, and to render any normal purchases of coal from that year’s budget
unnecessary. Similar relief of the budget from routine expenditure on this account
has occurred also in the current financial year : it is equivalent to current expenditure
having been anticipated and met off the reserve fund, and the specific savings thereby
occasioned in 1922-23 and 1923-24 will be properly due to that fund.
27 Budget of 1922-23.
146. The budget is balanced at £E. 33,630,000 and a surplus of £E. 2,190,000
is anticipated. No express provision is made for the current cost of putting the
Cadre Commission’s recommendations into practice, since the saving regularly
* See my report for 1920, pp. 26 and 27.