The following figures show how the defence ex-
penditure has piled up from 1938-39.
Defence Expenditure
(Revenue Account)
Year. Crores of Rs. Year Crores of Rs.
1938-39 46.18 1941-42 103.93
1939-40 49.54 1944-45 397.23 (RevisedEstimate)
1940-41 73.61 1945-46 394.23 (Revised Estimate)
Capital portion 1944-45 59.4 crores.
Total defence expenditure including capital ex-
penditure was Rs. 1610 crores, Defence expenditure
per day (1944-45) was 109.5 lakhs (Revenue account).
THE STERLING BALANCES -
The non-budgeted war burden is still greater.
The sterling balances and the prevailing inflation
in India are the result of the British policy of fighting
her wars at India's cost. During the last six years
from 1939 to 1945 the British Government in India
acquired for World War II the fruits of the labour of
400 million people, toiling all day and half the night.
In addition, millions of Indians supplied services to
Britain.
In fact, a large portion of the sterling balances to-
day represent goods acquired at controlled rates in
order to meet the emergency of World War IE. These
goods were acquired by Britain at a price much below
the parity price of the said goods in Britain. Control
of prices was introduced in India. Was it for India's
good? Certainly not. So Britain for its war and allied
purposes acquired goods from us at artificially control-
led low prices and considerable part of them were
sold through the quasi-officially conducted U.K.C.C. at
very high prices, depriving India of the benefit, and
enriching Britain to that extent. On the other hand
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