10 found. An excise duty of 63 piastres per kantar was imposed on sugar produced and consumed in the country, such sugar having, since the early days of the war, been sold to the consumer at a price artificially maintained at a much lower level than that prevailing abroad. To meet the increased cost of fuel on the railways, passenger fares were raised to 50 per cent, above pre-war rates, and moderate increases in some of the goods rates were imposed at the same time. Other heads of revenue exhibited an expansion under the continued operation of the influences which had been at work during the two preceding years, with the result that the final accounts for the year showed a surplus of £E. 669,000 after all the above-mentioned charges, ordinary and extraordinary, had been met. Of this surplus, £E. 389,000 was credited to the Silver Reserve Eund, and £E. 280,000 to the General Reserve Fund, raising it to £E. 6,770,000.

The expenditure for the year 1918-1919 was lightened by the difference between the amount of 3 millions, contributed to the cost of military operations the year before, and that of upwards of half a million, which figured under that head for the year. This economy, however, was more than absorbed by increased expenditure under other heads, to which the upward movement in cost" of materials and stores again contributed in a large degree, while war gratuities to the staff on a new and more liberal scale constituted a far heavier item than in the preceding year. Certain increases in administrative expenditure and new works were authorised in obedience to a pressing need for expansion or extension in various directions. On the other hand expenditure on renewals was restricted by the difficulty of obtaining labour and material.

On the revenue side the State railways charges were again raised to meet increased expenses, the passenger fares to double their pre-wat figure, and a considerable number of goods rates in approximately the same proportion. This measure produced a large increase in the receipts, which was supplemented by a further considerable increase in the Customs revenue due to the expansion in value of imports, by the receipts from the newly purchased telephone- system, and by moderate increases under a few other heads. The final figures for the year showed a surplus of £E. 4,277,000, of which £E. 4,210,000 was added to the General Reserve Fund, raising it to £E. 10,980,000, and £E. 67,000 to the Silver Reserve Fund, raising it to £E. 1,452,000.

In framing the Budget for the year 1919-1920, the Administration was confronted with the necessity of providing for long-deferred claims for arrears of maintenance and renewals, cliiefly in respect of the State railways, and for new works under the heads of irrigation, buildings, and harbour extension, all these outlays being inflated by the high cost of material and labour. Reorganisation and extension in certain services, and the reinstatement of officials returned from military service, called for increased expenditure on personnel. On the other hand the total estimated cost of fuel and stores was somewhat diminished by the fall in freightage of. coal. The revenue estimates were raised to the figure which appeared to be justified by the actual receipts of 1918-1919, but this fell snort by £E. 550,000 of the total estimated expenditure, the figures as prepared by the Finance Committee being :— £E. Receipts ... ... ... ... ... 27,300,000 Expenditure ... ... ... ... 27,850,000 At the last moment, however, the estimates of expenditure were increased by £E. 1,000,000 as a- provision for the liabilities arising out of the disorders which took place in the spring.

The actual figures of revenue and expenditure for the year are not yet available; they will probably show considerable variation from the estimates.

On the Tevenue side the receipts from Customs show a large increase as a result of the rise in value both of imports and exports. The duty on tobacco was raised in September 1919 by P.T. 20 per kilog., the resulting annual increase in revenue being estimated at £E. 1,700,000. The receipts of the Domains Administration have been increased by the rise in the price of cotton, while the recent expansion of the note issue adds to the estimated profits from this source.

On the expenditure side the estimates have been augmented by a large addition to salaries, wages and allowances on account of the higher cost of living. The total increases granted on this account over normal salaries amount to nearly £E. 5,000,000 per annum, of which some £E. 3,000,000 have been authorised during the year 1919-1920 alone. Expenditure under other heads will probably fall considerably House of Commons Parliamentary Papers Online. Copyright (c) 2006 ProQuest Information and Learning Company. All rights reserved.