§ As my estimated deficit was 41 millions, that would leave a deficit still remaining of about 35½ millions. I shall propose to borrow 32 millions of that in a form which I will state to the Committee when I propose the Resolution; and to find the rest by a draft upon our Exchequer balances, which, as I have already explained, are nearly double what they were last year.
§ But I have to add something more with regard to borrowing. Last year I pointed out to the Committee the difficulty in our present circumstances of financing the Exchequer during the first, second, and third quarters of the year, because, with so large a part of our revenue coming from the income tax, and being almost entirely received in the fourth quarter, and expenditure going on as it goes on in wartime throughout the year, it would be necessary to enable the Chancellor of the Exchequer of the day to obtain funds temporarily from some other source than the ordinary borrowing on Ways and Means, or by deficiency advances. I may have to ask the Committee later on for temporary borrowing powers, which would be by Treasury hills, or some short loans of that sort, to the extent of ten or twelve millions. I think the Committee will see that the necessity for anything of that kind will depend upon circumstances which we cannot now foretell. Therefore I do not include these temporary borrowing powers in the borrowing powers for which I shall ask the Committee to pass the Resolution.