- 97 -to the continuation of this increase in annual expenses to the extent of the increase in annual revenues. Accordingly, it is hoped that the increase will remain each year to the extent it was in the past year (217,500 G.M.) to compensate for what is taken from the reserve fund. Therefore, it is important for us to know how much the increase in Egyptian annual revenues has been in recent years. I have investigated this thoroughly and found that it is not possible for us to determine this precisely by merely looking at the figures in the published accounts. This is because revenues have increased by including amounts in them that were previously left out, or were mentioned as net revenues, so that every increase of this kind is matched by a corresponding increase in expenses. It is a nominal increase, not a real one. Furthermore, revenue from coinage varies greatly and should not be counted among the revenue items on which we base our calculations. This is from one perspective. From another perspective, we find that the reduction in taxes that has occurred in recent years reduces the increase in annual revenues, even if temporarily, if not permanently. After calculating these amounts that affect the increase in revenues, it became clear to me that revenues have increased at an average of 503,000 G.M. per year for the past five years. I cannot say that I see no reason to not expect this, especially since the vast sums that constitute essential expenses must have some yield and revenue in the future in some way. However, the matter depends on the weight of the seasons and the price of cotton, and neither of these can be determined by intuition or guesswork. But whatever the future may hold, there is no doubt that the amount I mentioned earlier, which is 503,000 G.M., cannot be considered as evidence to be relied upon now. Therefore, the government's expenses should not exceed this amount now, otherwise we would be violating the fundamental principles that I consider essential to uphold. After this lengthy explanation, I return to consider the budget for the current year. Expenses were estimated at 1,434,000 G.M., an increase of 275,000 G.M. over the expenses estimated in the 1906 budget. However, this increase of 275,000 G.M. is not real but apparent, because it results from the inclusion of amounts in revenues and expenses that were previously only reported as net figures after deducting an amount from another) (1). I have clarified this in (1) (24) the year 1904 detail (13)