3

B.—2a

CONSOLIDATED EUND. EXPENDITURE. In accordance with my promise, the Government have carefully revised the Estimates, with a view to retrenchment, hut find it impossible suddenly to make reductions to any great amount. We have, however, reduced the proposed expenditure for the Colonial Departments by the sum of £34,370, full particulars of which I shall give in Committee. The Government will, during the recess, carefully consider the organization of all the departments, with the intention of reducing the expenditure as far as is compatible with an efficient service. The proposed expenditure for the year is as follows :— EXPENDITURE, 1876-77. Civil List ... ... ... ..." ... £29,750 0 0 Permanent Charges ... ... ... £1,075,184 2 5 Less Interest on Provincial Loans for 12 months, and on Railways for G months ... 291,765 5 11 783,418 16 6 Class I.—Public Departments ... ... 90,104 4 6 II. —Law and Justice ... ... ... 162,448 15 5 lll—Postal and Telegraph ... ... 227,424 0 0 IV.—Customs ... ... ... 73,166 2 3 V.—Miscellaneous ... ... ... 62,821 0 0 Vl.—Native ... ... ... 34,985 18 4 VII. —Militia and Volunteers, Armed Constabulary, and • Contingent Defence ... ... 78,610 10 0 Vlll.—Public Domains and Buildings ... 30,711 4 0 IX.—Railways ... ... ... 260,75S 6 8 X.—Municipalities, Road Boards, &c. ... 75,000 0 0 1,096,030 1 2 Capitation and Special Allowances (6 months) ... .... 150,000 0 0 Moiety of Stamp Duties (6 months) ... ... 28,750 0 0 Total ... ... ... ... £2,057,94S 17 8 Provision has been here made for continuing such of the provincial services and for the employment of such of the officers of the Provincial Governments as it has been thought necessary to retain ; but to avoid the possibility of embarrassment, power has been taken in the Einancial Arrangements Bill to continue other services should it be found desirable to do so. The Government believe that a very large saving will be ultimately made by the amalgamation of the General and Provincial services. As it is impossible to pass a complete Education Bill this Session, and as it is now only necessary to provide for the six months ending on the 30th June next, it has been determined to leave the charge for education upon the Land Eund, the fees where now payable to the Provincial Governments going in aid of that Eund. I hope honorable members will approve of this arrangement. The Government desire to see education, so far as it is not maintained by endowments, provided for from the Consolidated Revenue; but, looking at all the circumstances of the colony, they have come, with regret, to the conclusion that the cost of education for the present year must be a charge upon the Land Eund. I may here state that it is intended to provide out of the Consolidated Eund for the whole cost of the administration of the gold fields, and the sum has accordingly been included in the estimated expenditure for Law and Justice. The gold fields revenue is thus released from all liability, and will be divided amongst the several counties in which it is collected. It will be observed that only six instead of nine months' subsidies are asked for Municipalities and Road Boards. But, as it would be manifestly unfair tbat