XXXVIII

8,—6.

courage and force of character triumphed where people with less courage and less force of character would have failed. It must be remembered, however, that a very considerable portion of the annual charges against the Consolidated Fund, is of such a nature that a reduction is not practicable, and for this revenue must be provided—l refer more particularly to the permanent annual charges, including interest, sinking funds, pensions, and increases of salaries on account of the increased cost of living, which for the current year will amount to approximately £13,250,000. Included in the amount quoted above is £4,615,200 for interest and sinking fund on our war loans, and £1,750,000 for war pensions, which, however, should be a gradually diminishing quantity. The country has also had to undertake a heavy recurring expenditure on account of the necessary expansion and improvement of our educational system. The total expenditure on education for the year 1920-21 amounted to £3,193,452, as against £1,324,738 for the year 1912-13. ESTIMATED REVENUE. For the year 1921-22, I estimate the revenue at — £ Customs . . . . . . . . . . 4, 900, 000 Railways .. .. .. .. .. 7,350,000 Stamp and death duties .. .. .. .. 3,010,000 Post and telegraph .. .. .. .. 2,79.0,000 Land and income tax . . . . .. 7, 700,000 Beer duty .. .. .. .. .. 500,000 Registration and other fees .. .. • .. 180,000 Amusement-tax .. .. .. . . 80,000 Marine .. .. .. . . .. 60,000 Miscellaneous .. .. .. . . .. 900,000 Territorial revenue . . . . . . .. 190,000 Endowment revenue .. .. .. .. 110.000 Other receipts .. .. .. .. . . 230,000 £28,000,000 ESTIMATED RESULT FOR THE YEAR 1921-22. As the full effect of the economies which are being actively introduced will not be felt during the current financial year it is anticipated that the expenditure will amount to =629,266,367, whilst the revenue is estimated at £28,000,000. To the latter, however, has to be added the actual cash balance carried forward at the beginning of the year —viz., £4,920,294 —leaving an estimated cash surplus of £3,653,927, reducible by the amount which may be appropriated on the supplementary estimates. It will possibly be within the recollection of honourable members that during the session of last year I referred to the necessity for retaining in hand the previous year's surplus of £6,132,232 in anticipation of the period of stringency which has since come upon us. By the aid of the past year's surplus I am pleased to say that sufficient cash has been in the hands of the Treasury to meet ordinary charges, and although for the current year the chances at present of fully meeting our expenditure out of the year's revenue appear uncertain, still I am sanguine enough to believe that at the 31st March we shall be able to show a balance of cash in hand as stated above. READJUSTMENT OF TAXATION. Legislation will be laid before Parliament this session, with the object of giving effect to the intentions of the Government in the way of economy and retrenchment, and which will provide for a readjustment of the revenue so that the burden of taxation may press more equally upon the different sections of the community,