82 



works may still be estimated at five millions Ex. Even if only 

 half of this sum be taken as the net gain to the ryots, it will 

 be seen that the share of the profit derived by Government is 

 only one- seventh of the fotal profit. In the Punjab during the 

 four years ending 1885-86, the area under irrigation increased 

 from If million to 2 J million acres or by 57 per cent. It is 

 hardly necessary to point out the value of irrigation works as a 

 means of protection against famine. 



(/) The remittances, necessitated by the payment of inter- 

 est on the capital borrowed for productive works, are therefore, 

 on the whole, in no way injurious to the country. On the con- 

 trary, these works bid fair in the course of a few years to 

 prove highly remunerative. 



{g) The ordinary debt has not increased during the last 30 

 years. Before the mutiny, the registered debt amounted to 51^ 

 millions sterling. The mutiny added 38^ millions to the account, 

 and accordingly the total debt stood at 90 millions sterling in 

 1860. The debt excluding sums borrowed for productive 

 public works or transferred to that head now stands at only 75 

 millions. The purposes for which the debts were incurred were 

 mainly wars and the strengthening of the defences of the Empire 

 owing to the advance of Kussia towards the Indian frontier. 

 The ordinary debt is less than two years' net revenue of India, 

 and no country in the world has a lighter burden of debt. The 

 interest on debt amounts to about 4^ millions Rx or 10 per cent, 

 of the net revenue of India. If the interest on capital bor- 

 rowed for productive works be taken into account, the ratio is 

 25 per cent.'^* The fact that much of the debt of India is 

 held in England doubtless makes a difference ; but, in the cir- 

 cumstances of India, this may be really an advantage. The 

 dearth of capital in this country makes it undesirable that any 

 portion of it, that is or is likely to be employed in industrial 

 undertakings, should be invested in Government securities. 

 In so far as the capital that is hoarded is attracted by Govern- 

 ment loans and invested in Government securities (as in the 



^* The percentage of interest on debt to annual revenue of some of the European coun- 

 tries in 1881-82 was as follows: 



United Kingdom 



Italy 



Egypt . . 



France . . 



Japan 



Spain 



Portugal . , 



Per cent. 

 35 

 43 

 41 

 40 

 39 

 37 

 36 



