RESULTS OF THE BUDGET OF 1901-2.

The liquidation of the accounts for the year 1901-2 showed that the Ordinary Revenue and Expenditure both exceeded the amounts corresponding to the previous year. The surplus which appeared in 1901-2 was $3,065,535, as compared with $3,575,798 in 1900-1. a summarised form the results of the year were follows:

Revenue from normal Budgetary sources
Expenditure for normal Budgetary purposes

Surplus

$66,147,048

63,081,513

$3,065,535

In

as

From the above total of Revenue collected are eliminated the figures included under the heading "Revenue Received in Securities of the Public Debt" and "Virtual Revenue," amounting, respectively, to $602,186 and $25,144. The Minister considered that these items, though included in the Revenue account proper, should not be taken into consideration in computing the results of the year, inasmuch as the former represented Public Debt Securities which were received in accordance with the existing law by the Federal Exchequer in payment of certain taxes, etc.; whilst the latter, or "Virtual Revenue," being in respect of Stamps affixed by the Government to contracts, found its counter-charge in the Expenditure side of the account.

The details of the Ordinary Revenue and Expenditure are shown in the following Table in comparison with the Budgetary appropriations :

The foregoing Table of Revenue showed that, with few exceptions, a general increase had been apparent in every source of Revenue, with the result that the Budget Estimates had been exceeded by nearly four and a-half million dollars. The increase of $716,534 yielded by the Taxes on Foreign Commerce was, the Minister considered, moderate, since this group of taxes contributed more than two-fifths of the total Revenue of the Republic. The Stamp Revenue had proved to be the source which had most exceeded the expectations of the Budget, and the result showed that the caution exercised in framing the Estimates had, fortunately, proved unnecessary. The advance shown in the product of the taxes on Mining Property had been caused by the larger number of mining claims which had been "denounced," and also to the fact that the settlement of these "denouncements," which had formerly been effected in a most dilatory manner, had been considerably expedited. The extraordinary increase shown under the head of "National Property," owed its cause, primarily, to the profits derived from the investment of a portion of the Treasury's surpluses and to financial transactions in connection with Bonds of the Five per Cent. Redeemable Debt, which were taken up by the National Bank for the account of the Government in order to prevent the depreciation which a sudden sale of a large amount of these Bonds might have produced.

With regard to the Expenditure side of the account, the Minister explained that, as usual, the credits actually authorised by the Budget had been largely supplemented and modified by subsequent legislation, as shown below.