The Budget and Finance of Palestinian Government before 1948 (Nakba), British Mandate: A Survey of Palestine: Volume II - Page 535. Chapter XIV: Finance: Section 1:

CHAPTEH XIV.

FINANCE.

Section 1.

THE BUDGET.

As has been explained in section B of chapter IV, the financial administration of the Palestine Government is ultimately controlled by His Majesty's Treasury. Within the framework of the general policy thus derived, the Government endeavours to ensure that development of the social services and the country's productivity is steadily advanced, but always in a manner consistent with the principle that public expenditure shall be modulated according to the ability of the country to bear it. The assessment of Palestine's actual and potential financial strength has to be carried out by Government alone (subject to the approval of the Secretary of State and His Majesty's Treasury) because of the unfortunate lack of any representative constitutional body such as would share the responsibility in a normal administration. In recent years, however, the fullest possible use has been made, in the preparation of the budget, of informal consultations with the banks and representative bodies and individuals from the Arab and Jewish communities.

2. A table illustrating the financial development of Palestine during the years from 1922/23 to 1944/45 is given on the following page. This table covers a wider ground than that given on page 124 of chapter IV but reproduces the figures of total revenue and expenditure for the years 1934/35 and 1943 to 1945. The present table gives the figures for the settled population (i.e. excluding nomads and members of His Majesty's Forces) of the censuses of 1922 and 1931; between 1925 and 1928 the estimated figures of population at mid-year are given; and from 1934 onwards the figures represent the annual mean. The figures in respect of currency in circulation are as at the 31st December of the calendar year in which the financial year began. They are given as from the financial year (1928/29) following the substitution of the present Palestine currency for the Egyptian currency which was legal tender in Palestine up to the 31st March, 1928. (The rate of conversion was one Palestine pound for £E.0.975). The import and export (including re-export) figures reflect foreign trade during the year ending the 31st December immediately preceding the

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