8.—6

XXXIV

by, one-half of my figures may be said to have been already realised. But as I do not desire to be too sanguine with regard to our receipts, I have refrained from enlarging last year's figures unduly, although I might, if optimistic, do so, in consequence of the satisfactory results already arrived at. There are, however, risks which cannot be avoided; for instance, should our harvest be unfavourable, or, as the outlook portends, should the season be late, there would be a serious falling-off in the railway revenue of the year. Again, there is a lull in respect to mining investments, and it is hopeless to expect that the mining activity of last year will be maintained. We must therefore be prepared for a decrease in Postal and Customs revenue from this cause. I have dealc more fully with this in my remarks upon the estimated revenue. Estimated Bxpendituee, 1897-98. The total estimated expenditure is set down at £4,622,843, representing an increase of £90,664 over the appropriations of last year, and of £112,862 over the expenditure during that period. The permanent charges are estimated to exceed the actual expenditure of last year by the sum of £58,367, the annual appropriations by £83,684. Among the permanent charges, interest on the public debt is responsible for an additional sum of £59,653 ; but in the remarks I have already made when referring to the position of the public debt I think I have fully accounted for this extra charge, a very large proportion of which is returned to us, either in the way of territorial rents, or in actual interest and sinking fund on the moneys borrowed by local authorities and settlers. The increase to the annual appropriations looks large, but a careful examination of the classes and votes will prove that every possible economy has been effected; and it must be expected that while the commercial prosperity of the community increases, the wants and requirements of the colonists will also increase, and should be practically recognised as far as possible. It must be admitted on all sides that certain heads of our expenditure must year by year increase alongside the natural growth of our population, and in relation also to the general prosperity, which we gladly welcome. These heads of expenditure may be named as " Education," " Maintenance of Lunatic Asylums and Charitable Aid," "Postal and Telegraphic," and our "Working Eailways." The estimated expenditure for these services amounts to £1,669,842. Deducting this sum from the total of the annual appropriations for the current year, the balance of £822,207 which is left compares very favourably with the amount of the actual expenditure during last year upon similar services. The following table will show the position : —

I have not included the Valuation Department, the expenses of which are estimated at .£39,440. The valuation of our lands has been ordered by

Actual, 1896-97. Estimate, 1897-98. Increase. Decrease. £ 20,328 101,922 29,835 123,294 91,050 22,381 7,206 18,107 50,033 45,371 68,552 101;330 116,669 509 £ 19,538 73,597 24,727 122,996 74,432 21,770 6,425 16,476 56,405 46,400 79,627 108,158 131,316 900 £ £ 790 28,325 5,108 298 16,618 611 781 1,631 Jlass I. Legislative Departments II. Colonial Secretary's Department ... III. Colonial Treasurer's Department ... IV. Justice Department VI. Customs and Marine Department... VII. Stamp and Deeds Department VIII. Labour Department IX. Mines Department X. Agricultural Department XII. Public Buildings XIII. Defence Department XIV. Police Department XV. Lands and Surveys Department ... XVI. Bates on Crown Lands ... 6,372 1,029 11,075 6,828 14,647 391 796,587 782,767 40,342 54,162