8.—6

ESTIMATED EXPENDITUBE FOB THE YEAE 1888-89. Ordinary Bevenue Account. This brings me to the proposed expenditure for the year 1888-89. The estimated ordinary expenditure is £3,953,593, full particulars of which appear in the Estimates, which will be in the hands of honourable members at the earliest possible moment. The estimated amount of interest which will be paid during the year is £1,838,539, being £72,872 more than the interest paid during the year 1887-88. The chief items comprised in this increase of £72,872 are £13,500 for about six months' interest paid at the beginning of this year on the £500,000 borrowed temporarily by the late Government in October last; £20,000 interest on the £400,000 issued to cover in part the deficits of the past two years, and about six months' interest on the £2,000,000 about to be raised. With regard to the latter I may state that while the full amount estimated to be payable appears in the estimates of expenditure, a large saving will be effected by investing in our own or other securities the balances of the loans not immediately required for expenditure. Land Fund. The estimated expenditure chargeable against the Land Fund is £107,245, made up of £18,800 for payments to local bodies under permanent Acts; £2,400 Rates on Crown Lands; and £86,045 for Crown Lands and Surveys. Last year the total expenditure was £158,474; £16,501 being for payments under permanent Acts; £40,724 for Rates, and £101,249 for Crown Lands and Surveys, on which latter item there is for this year a reduction of £15,403. Rates on Crown lands it is not intended to continue this year, except in special cases where rights have arisen. Total Estimated Expenditure. The total estimated expenditure is therefore £4,060,838, being £3,953,593 against ordinary revenue, and £107,245 against the Land Fund. But no provision is made in these Estimates for school or other public buildings, and for subsidies to local bodies, our proposals for these I will submit presently. ESTIMATED BEVENUE FOB THE YEAB 1888-89. The estimated ordinary revenue for the year 1888-89, on the basis of the present taxation, including the sum of £263,200 to be received as proceeds of the sale of what are known as the Sinking Fund debentures, is £3,897,400. Particulars of the sources whence this revenue is expected to be derived will be found in a table appended to this Statement. The estimated revenue from land is £119,000. ESTIMATED BESULTS OF THE YEAB 1888-89. Our total estimated revenue is therefore from all sources £4,016,400, and the estimated expenditure being £4,060,838 leaves a deficit of £44,438 on the whole revenue. But as the Land Fund is estimated to give a small surplus of £11,755, and as we do not now use any surplus Land Fund as ordinary revenue, we have to provide a sum of £56,193 to make our ordinary expenditure and revenue balance, in addition to the amount required for school and other public buildings, and for subsidies to local bodies. The amount which the Government estimate will be required for expenditure on public buildings from revenue for the year is £60,000, being £30,000 for school buildings, £17,000 for the General Post Office, and £13^000 for other buildings, particulars of which will be given by my colleague, the Minister for Public Works, in his annual Statement. This, added to the estimated deficit of the ordinary revenue, and including £30,000 subsidies to local bodies, to be

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