ABSTRACT
rates fall heavily upon private consumption and form an integral part of taxation as a whole. They are a part of "Revenue," as defined in paragraph 183, and the incidence and scale of local rates will have to be taken into account by the Minister of National Finance in framing his budget. He may need some powers of influence or control over them. This need not interfere with the freedom of local authorities to enlarge the field of their communal activity. An increase in local rates due to the voluntary expansion of free services will still be possible. But those activities-such as a housing programme-which are the result of a central decision must not burden local finance. And arrangements should be made so that even voluntary activities, if approved by the central authority, can be financed at rates of interest as low as those paid by the State.
