The financial situation in the provinces is not much better. Under the financial arrangements of the Reform Scheme, the provinces of India, taken together, secured an accession to their resources of about 11 crores of Rupees. Besides, the provinces had between them in 1920-21 a total accumulated balance of 21 crores and 68 lakhs. But so great has been the increase in provincial expenditure during the last two years that even those provinces which had hoped to realise large surpluses are now on the verge of bankruptcy. In the first year of the reform era, most of the provinces were faced with deficits and were just able to tide over their financial difficulties by drawing upon their balances. But in the current year, the financial situation in many of the provinces has become worse. The Burma budget shows a deficit of 1 crore and 90 lakhs, the Punjab, 1 crore and 30 lakhs, Bihar and Orissa, 51 lakhs, Madras, 41 lakhs, the United Provinces, 27 lakhs and the Central Provinces 37 lakhs. The deficit of the Madras Government would have been much higher had it not taken steps to increase its revenues by Rs. 77-1/2 lakhs from fresh taxation. The Bengal statement shows an estimated surplus owing to the remission of the Provincial contribution to the Central Government and expected receipts from fresh taxation amounting to 1 crore and 40 lakhs. But it is very doubtful if the expectation will be realised, and early next year, further fresh taxes are likely to be imposed. Assam has budgeted for a deficit of 14-1/2 lakhs after the imposition of additional taxation. Proposals for further taxation are under consideration in the Punjab, Bihar and Orissa, the Central Provinces and Assam. In the United Provinces the proposals brought forward by the Government were rejected by the Legislative Council. I warn my countrymen against the policy of allowing these Reformed Councils to work their wicked will. There will undoubtedly be a further increase of taxation and there is an apprehension in my mind, I desire to express it with all the emphasis that I can command, that if we allow this policy of drift to continue the result will be that we shall lose the people who are with us to-day. Let us break the Councils if the Bureaucracy does not concede to the demands of the people. If there is fresh taxation as it is bound to be let the responsibility be on the Bureaucracy. Then you and I and the people will jointly fight the powers that be. LABOUR ORGANISATION