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March. This overexpenditure Was more than offset by reduced expenditure under the annual votes, so that the net expenditure as a whole was just within the amount provided. Revenue, totalling £58,506,000, exceeded the estimate under practically every heading. Income-tax, however, while still showing an upward trend as compared with the previous year, was approximately £500,000 under the estimate. The favourable balance of other items of revenue, however, produced a surplus for the past year of £1,254,000. It is proposed to leave this surplus in the Consolidated Fund to increase the working balance in the account to £4,510,000, which is still below what is considered a satisfactory amount for normal financing, as it is less than is required for one month's expenditure out of the Consolidated Fund. Allowing for the taxation reductions already in operation as from the beginning of this year and the further reductions which I will refer to shortly, and including the balance of war taxation now payable into the Consolidated Fund, the total revenue of that Fund during the present financial year is estimated at £100,382,000. On the expenditure side the estimates include the reinstated votes for the three Service Departments—Army, Navy, and Air —and the new vote to cover stabilization. Numerous minor items ancillary to our war effort and handled by various Departments of State as a charge against War Expenses Account have been transferred to the appropriate departmental votes. The total expenditure as set out in detail in the estimates is £99,465,000, leaving a balance of £917,000 for the supplementary estimates and contingencies. The following gives the estimated receipts and expenditure under main headings:— Receipts Taxation — £(000) £(000) Customs .. .. :■. „ . .. .. .. 14,500 Beer duty .. .. .. .. .. .. 4,200 Sales tax.. .. .. .. .. .. .. 14,250 Film hire .. .. .. .. .. .. 130 Highways .. .. .. .. .. .. 2,707 Stamp duty .. .. .. ... ... .. 8,000 Land-tax .. .. .. .. .. .. 930 Income-tax .. .. .. .. .. .. 30,750 National security tax .. .. .. .. .. 8,000 Miscellaneous .. .. .. .. .. .. 140 83.60T Interest recoveries from trading accounts, &c. .. .. .. 4,767 Profits of trading undertakings .. .. .. .. 1,507 Departmental receipts .. .. .. .. ~. 10,501 16,775 £100,382

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