68 12. Reserve Fund.

The situation of the Reserve Fund, after the accounts for 1909 have been closed, will be as follows:— £ E. Unallotted balance on JanuarjM, 1909 .. .. .. .. 20,000 Economies on credits granted, and extraordinaiy receipts .. .. 25,000 Surplus of 1909 .. .. .. .. .. .. .. 95,000 Total 140,000 It has been decided in the present year to again retain the sum of £E. 20,000 unallotted to meet unforeseen emergencies, and to spend the balance of £E. 120,000, which will thus be available, in the following manner;— Land settlement and surve3. Public works, including houses for oflicials Eoads and communications .. Various remunerative schemes Prophjdactic schemes Miscellaneous ,.

£E. 32.000 25.000 15.000 23.000 7.000 18.000 Total .. 120,000 Equilibrium between revenue and expenditure in the budget for 1909 was only attained by charging to the Reserve Fund certain services involving expenditure of a recurring nature. This expedient was clearly contrary to the maxims of sound finance, and was only resorted to in view of the impossibility of making further retrenchments in the budget without seriously hampering the machinery of administration. It has now, however, been possible to include in this year’s estimates the credit necessary for the maintenance of Port Soudan, and it is intended in the future to transfer gradually to the ordinary budget various other items which should not properly be charged to the Reserve Fund.

The manner in which the scanty resources at the disposal of the Soudan Government have been managed during the last two years, during a period of considerable financial strain, and the available funds distributed so as to procure the maximum of advantage for the country, reflects great credit upon Colonel Bernard, who has now held the arduous, and at times thankless, post of financial secretary for iiine years.

In addition to the credits granted from the Soudan Reserve Fund, the sum of £E. 354,000 has, as I have mentioned elsewhere, been advanced by the Egyptian Government for railway extension south of Khartoum.

IV. COMMUNICATIONS.

13. Railways.

The Director, Captain Midwinter, writes:— “During the ten years that have elapsed since the railway reached Khartoum very considerable capital expenditure has been incurred both on extensions and in improving the existing line, and we are consequently in a much better position with regard to the permanent way and rolling stock than would otherwise have been the case. The importance of this question of depreciation is, I know, fully realized by the Government, and I am well aware of the extreme difficulty of making adequate provision in view of the financial position. It is, however, of vital importance that a larger sum should be spent annually on renewals, and I trust that this may be given the first claim among such items of additional expenditure as may be found possible in future years.”

The following table gives a comparison of earnings and expenditure during the last five years:—■ House of Commons Parliamentary Papers Online. Copyright (c) 2006 ProQuest Information and Learning Company. All rights reserved.