The situation in India is both difficult and dark. Dark
in the sense that it is almost impossible for us in this country to judge of its real character. Last week there was some hope that the Assembly would not reject the Budget. But on Monday it did so. The rejection was by a majority of 8 (60 to 57) ; the reason for it was the adherence of the Liberals and Moderates to the Swami programme, presumably from fear of supporting the Government. The Government's procedure has been strictly constitutional. A new Finance Bill was intro- duced on Tuesday which provided for only the immediate needs of the Government, to enable it to carry on, and which fixed the Salt Tax at the lower of the two figures proposed, and therefore afforded no relief to the Provinces. The Assembly rejected this Bill without a division. The object of the Government tactics has been to throw the obloquy of refusing a measure designed for the financial relief of the Provinces upon the Assembly. The new Finance Bill, unlike the old, was " recommended by the Governor-General." In this form it can be introduced into the Council without having been to the Assembly, and can become law simply on the Governor-General's signature, without being passed by the Council.
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