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the Budget upon the assumption that the Provincial form of Government will be abolished throughout New Zealand during the present Session of Parliament. The proposed Expenditure for the current year is as follows: — £ s. d. For Civil List and Permanent Charges ... ... ... 950,175 12 2 For Ordinary Services, — Class I.—Public Departments ... ... ... 74,459 11 9 „ ll.—Law and Justice ... ... ... 65,721 17 0 „ lll.—Postal and Telegraph ... ... ... 222,509 0 0 „ IV.—Customs ... ... • ... ... 57,292 14 6 „ V.—Miscellaneous ... ... ... 43,898 9 2 „ Vl.—Native ... ... 36,191 3 9 „ Vll.—Militia and Volunteers ... ... ... 22,885 0 0 „ Vlll.—Public Domains and Buildings ... ... 23,351 4 0 „ IX.—Eailways open for Traffic... ... ... 244,318 6 1 X.—Armed Constabulary ... ... ... 91,000 0 0 „ XL—Grants to Municipalities and Eoad Boards ... 80,000 0 0 „ Xll.—Provincial Services for eight Months —from Ist November, 1875, to 30th June, 1876 ... 230,322 5 6 Making a total of ... ... ... £2,142,125 3 11 To this must be added— Capitation and Special Allowances to the Provinces for four months ... ... ... ... ... ... 92,275 0 0 Advances under " The Provincial Public "Works Advances Act, 1874" ... ... ... ... ... ... 48,500 0 0 Moiety of Stamp Duties payable to Public "Works Account ... 62,500 0 0 Local Public Works in Out-districts ... ... ... 60,000 0 0 Total Expenditure chargeable on the Consolidated Fund ... £2,405,400 3 11 The Committee will observe that there are four new classes added to the Ordinary Services of the year, upon which it will be necessary for me to make some comment. I take them in the order in which they stand. CLASS IX.—EAILWAYS. Under this head is included the working expenses of the railways under the management of the General Government, and the like expenses for eight months of the railways now under the control of the Provincial authorities. CLASS X.—AEMED CONSTABL TLAEY. Honorable members are aware that the appropriation under the Defence Loan Act for Defence purposes expired on the 30th June last; it has therefore become necessary to make further provision under this head. Last year the House decided that half the sum required for Defence should be borne upon revenue, and, believing that to be an indication of the wish of the House as to the way in which Defence was to be charged in future, the Government have placed upon Consolidated Eund the whole charge of the Armed Constabulary for the current year. I have already shown that there is a sum of £78,751 13s. Bd. still available of the amount voted for Defence under the Loan Act of 1870; and, in addition to the above vote for Armed Constabulary, I shall have to ask for £20,000 for Contingent Defence out of that sum. The Committee will be gratified to observe that there is a considerable reduction as compared with last year upon the amount of the vote. My honorable colleague the Native Minister will give full particulars upon this subject when the estimates come on for discussion. CLASS XL—GEANTS TO MUNICIPALITIES AND EOAD BOAEDS. Under the provisions of the Abolition of Provinces Bill there will become payable to Municipalities and Road Boards, out of the Consolidated Revenue, one pound for one collected upon rates up to one shilling in the pound. These payments will be in addition to the amount payable to Road Boards from Land Revenue. Eor this year, however, the Committee will be asked only to provide for an eight instead of a twelve months' subsidy. Great difficulty