8.—6

XXVII

Proposed Expenditure. It must be remembered that there are several services the expenditure on which, as the colony advances in settlement and increases in population, requires to be augmented from year to year, notably the Post and Telegraph services and the expenditure on free education. These services show an increase of £36,251 and £20,580 severally. Then, again, as extra mileage on our railways is thrown open the expenditure on that service must necessarily increase, and this accounts for the extra £13,684 shown under this head. The other departmental increases are small, and do not call for any special comment. I have been able to make a material reduction over the amount paid last year for our interest charges, amounting in all to £22,284. The largest item of reduced interest charges arises from the final disappearance of the old system of providing interest on the drawn bonds of the Consolidated Loan of 1867. The interest on bonds issued to provide for the requirements of loans to local authorities, and for the purchase of European and Native lands, and for settlement purposes generally, has necessarily increased; but the interest we pay upon the moneys raised for these purposes is more than covered by the earnings which come back to us. The total estimated expenditure is set down at £4,331,843, which is £65,131 in excess of last year's actual payments, but £18,357 less than my last year's estimate. The Estimated Revenue. The consideration of our revenue for the year we have now entered upon has given me much concern. On the one hand I desire to exercise proper caution, on the other hand I do not wish to discount our resources. Excluding the aid to revenue from the proceeds of debentures issued as a set-off against the Sinking Fund accretions, I have estimated the revenue at £4,195,800, which is £86,196 less than the actual receipts of last year. The Customs revenue is set down at £9,784 less; the revenue from stamps at £32,925 less. The latter item is large; but the receipts from death duties are an. element the amount of which cannot be foreseen, and last year increased our revenue by upwards of £35,000. With regard to the land- and income-tax I shall have a word or two of explanation to offer, but I may say here that I have not considered it safe to estimate our receipts from this source at more than £350,000, the same sum which I placed in my last Budget. The railway revenue has fallen, owing to causes which I have already mentioned, and, although I desire my estimate to be on the safe side, I shall be disappointed if the actual results do not exceed my present figures. The receipts under the head of " Territorial Revenue " are retained at the same figures I submitted last year, and you will recognise that the extremely low price of our staple products, and the losses sustained by our flockowners in the South Island by the unprecedented fall of snow, do not warrant an increase of this item. The item of £145,400 in aid of revenue from debentures issued against Sinking Fund accretions is larger than last year by the amount of £27,600 : a large proportion of this excess has arisen in consequence of the inclusion of an amount previously omitted in respect of the accretions connected with the sinking fund created under " The Government Loans to Public Bodies Act Amendment Act, 1892." Results at 31st March, 1896. I am not able on this occasion to prognosticate such a favourable balance at the close of the year as I have been able to predict on former occasions; still, lam able to show that our revenue will be more than sufficient to meet our expenditure requirements for the year, thus : — Estimated revenue ... ... • • • ■ • ... £4,341, 200 Estimated expenditure ... ... ••• •■• 4,331,843 Excess of revenue over expenditure ... 9,357 Balance to begin the year with... ... ... 180,024 Total gross surplus at end of year ... ... £189,381