§ I now come to the first of the famine years, to the revised accounts for the year 1896–97. Originally the Indian Government Budget showed revenue to the amount of Rx.61,053,200, and expenditure Rx.60,590,100, showing a surplus of Rx.463,100; but the revised 419 estimate, including famine expenditure, was not so satisfactory. The revenue is reduced to Rx.58,034,200, and the expenditure to Kx.60,021,100, showing a deficit of Rx.1,986,900. Analysing these figures, we find that the revenue has increased by Rx,3,019,000, and that the expenditure is less by Rx.569,000; so that the position is worse by Rx.2,450,000, there being an estimated deficit of Rx.1,986,900 in place of the original estimated surplus of Rx.463,100. Now, this change is entirely brought about by the famine, through which, as compared with a normal condition of affairs, the finances suffered by loss of revenue alone Rx.3,029,500, and the increase of expenditure in consequence of the famine was also upwards of three millions—Rx.3,045,600. Taking these two together, we have a total deterioration of Rx.6,075,100. Now, as those who study Indian finance are aware, a certain portion of the famine expenditure falls upon the provincial funds, and the provincial and local balances bear Rx.574,700 of this expenditure, while there is withdrawn from the Grant for Protection Works Rx.476,300. Therefore, the net cost imposed upon the Indian Government this year in consequence of the famine is Rx.5,024,100 in excess of the preceding year. But there were also other alterations in the revenue which are worth notice. There was a reduction of the opium revenue of Rx.420,100; and this, added to the Imperial loss under famine, gives a total deterioration of Rx.5,444,200. Towards meeting this there are certain improvements. In exchange (the rate for the year having proved to be 14.454d., or nearly 1s. 2½d. per rupee, against the Budget Estimate of 1s. 1¾d.) there was a benefit on the expenditure side of the account of Rx. 1,728,600. Then independent of exchange, famine, and opium, there was a reduction of net expenditure of Rx.354,700, bringing the total to Rx.1,143,500, and there was also an increase of revenue to the amount of Rx.354,700, bringing the total improvements to Rx. 1,498,200. Putting this with, the gain on exchange, but deducting Rx 232,600 of the increased Revenue credited to Provincial Governments, we get an improvement of Rx.2,994,200, which, deducting from it the extra cost entailed by the famine and the 420 loss on opium, makes the position worse by Rx.2,450,000. Thus, a surplus of Rx.463,103 is converted into a deficit of Rx.1,986,900. Since these figures were prepared, I have received further information as to the accounts, which have now been closed. They are somewhat better. The actual deficit for 1896–97 is expected to be Rx.1,593,500, which is less by Rx.393,400 than previously stated. Let me sum up these figures. They are rather complicated, but I hope the House will be able to follow me. ["Hear, hear!"] The upshot of the whole transaction is this—that for this year the famine imposed upon India an extra charge of Rx.5,962,600. The actual deficit was Rx. 1,593,500. Therefore, the excess of loss caused by the famine over deficit is Rx.4,639,100. This second year, therefore, again exhibits the same phenomenon as the preceding year—a large surplus over ordinary expenditure, endorsing the results of the preceding year, and showing there is a large margin of income over ordinary expenditure to meet the special charges to which a country like India is ever subject.