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given things a setback, and it seems impossible to gauge the time when we can with advantage place our new loans with a reasonable prospect of success. Under these circumstances, I trust members will concur with me in agreeing this year to the moderate proposals submitted. Having generally outlined the situation, I will now proceed with the details of the receipts and expenditure for the past year. FINANCE OF 1899-1900. As a fitting close to the finances of the nineteenth century, so far as they relate to this colony, I am, as previously stated, able to congratulate the country upon a record, credit balance at the end of our last financial year. This balance amounts to no less than £605,351, and emphatically demonstrates the magnificent progress this colony has made in developing its internal resources. The revenue for the year amounted to £5,580,386, to which £119,232 of other receipts were added, making a total on the revenue side of .£5,699,618. The expenditure amounted to £5,140,128, leaving a surplus on the year's transactions of £559,490, to which add the balance brought forward from the preceding year of £45,861 (£495,861, less £450,000 transferred to the Public Works Fund), and we arrive at the record balance of £605,351, which I have just mentioned. Eevenue. In framing last year's estimates of revenue I most certainly had no idea that the colony's resources would expand to such a wonderful extent. The taxation as imposed is clearly not of an irksome or oppressive character, but as the amount received from indirect taxation is large, it is clear that it will stand reduction and still leave a strong finance. The revenue last year was estimated at £5,249,600, while the receipts amounted to £5,580,386, or £330,786 in excess of the estimate, and also £393,957 in excess of the preceding year's revenue. All the heads of revenue except the " Miscellaneous " exceeded the estimate : Customs by £127,500 ; Eailways by £146,600 ; Stamps by £61,200 ; Territorial by £24,200 ; and others by smaller amounts. Table No. 2 attached hereto shows the exact figures. "Miscellaneous" would also have shown an excess had the amount of £61,832 been credited to this account upon recovery from the Land for Settlements Account, as I indicated in my last Budget would be done. The Audit Office, however, decided that the recovery could not be considered revenue, and therefore the amount had to be dealt with as an outside receipt; hence " Miscellaneous "is shown as £52,800 less than the estimate. ExPENDITUBE. The estimated expenditure upon all services for last year was set down as £5,203,701, whereas the actual sums spent totalled £5,140,128, or £63,573 less than the amount estimated. The amounts which have exceeded the estimate are few, and call for little comment, the principal item being " Eailways," with £12,500; but as we have received from that source some £146,600 in excess of the estimated revenue we cannot complain if the expenditure was exceeded by £12,500. Most of the departmental expenditure has been kept within the amounts voted. Interest and sinking fund is underexpended by nearly £19,600, principally arising from the interest provided for our 3-per-cent. Inscribed Stock not being required up to the close of the year. The department under the control of my colleague the Minister of Education shows a saving of some £23,000. In explanation of this, I am informed that the capitation was not so largely availed of as estimated, owing to sparseness of attendance caused chiefly by sickness amongst the pupils of many of the larger schools. Some of the larger items provided on the vote for " Charitable " purposes were also not paid over during the year. The other items of underexpenditure do not require separate comment. The several amounts of expenditure are shown in Table No. 2 attached hereto, and further particulars are contained in the Appropriation Account, which will be immediately laid before members.

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