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Food And Clothing & Subsidizing Policy in Palestine before Nakba: Supplementing Volume II, Chapter XIX, Pages 817-852, British Mandate: A Survey of Palestine: Supplement - Page 104

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British Mandate: A Survey of Palestine


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Supplementing Volume II, Chapter XIX, pages 817-852.


(p. 831)

The policy of subsidizing essential commodities from public funds, which was introduced in HM2 with a view to ensuring equitable distribution of scarce supplies and reducing the war-time inflationary pressures, has been maintained by Government as an instrument of economic policy for the present transitional phase.

(p. 832) (§ 28)

The net expenditure on subsidization of essential commodities has been as follows :-

1941/42 92,874
1942/43 1.140,341
1943/44 3,353.525
1944/45 4.709,149
1945/46 2,075,649
1946/47 1.750,000
Total 13.115,538

The gross expenditure on subsidization in 1944/45, 1945/46 and 1946/47 (estimated) and the amounts allocated to tile different essential commodities are shown below. The gross expenditure includes amounts derived from surcharges on a number of commodities. These surcharges were levied for the purpose of obtaining revenue to assist expenditure on subsidization , for the purpose of price equalization, and to ensure that "windfall" profits, arising from the difference between the internal price level and the external price level, would accrue to the state for subsidization purposes. The gross expenditure on subsidization which is shown below is therefore higher than the net expenditure by the amount derived from surcharges.

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