§ MR.MCCRAE (Edinburgh,E.)To ask Mr. Chancellor of the Exchequer if he can state whether the realised deficit of £5,415,000 837 for the year 1903–4 has been met by a draft on Exchequer balances in which were included £2,880,000 raised by way of loans and £3,000,000 received out of the proceeds of the Transvaal Loan.
(Answered by Mr. Austen Chamberlain.) The realised deficit of a past year must always be met in the first instance out of the Exchequer balance until Parliament is able to make other provision for it. In the present case, having to deal with a realised deficit of £5,415,000 for the year 1903–4, I propose to provide for it as follows:—I. To the extent of £2,880,000 it will be permanently withdrawn from the balance, that being the amount by which the balance was abnormally swollen in previous years by borrowings in excess of our requirements at the moment. This £2,880,000 having been raised to meet war charges, it appears proper to employ it to meet the war charges for 1903–4. The money will thus be utilised for the purpose for which it was raised. 2. A sum of £1,000,000 will be provided from the unclaimed dividend account. 3. There then remains a further sum of £1,500,000, which will be replaced from surplus revenue. It is with this object that it is proposed to provide so large a
| 1903–4. | 1904–5. (Details estimated.) | |||||
| Portion representing repayment of capital. | Portion representing interest and management. | Total. | Portion representing repayment of capital. | Portion representing interest and management. | Total. | |
| £ | £ | £ | £ | £ | £ | |
| 1. Interest of Funded Debt | — | 16,390,445 | 16,390,445 | — | 15,949,000 | 15,949,000 |
| 2. Terminable Annuities. | 5,045,845 | 1,492,169 | 6,538,014 | 5,203,000 | 1,318,000 | 6,521,000 |
| 3. Interest of Unfunded Debt | — | 2,422,435 | 2,422,435 | — | 2,427,000 | 2,427,000 |
| 4. Management of the Debt | — | 185,019 | 185.019 | — | 186,000 | 186,000 |
| 5. New Sinking Fund. | 1,464,087 | — | 1,464,087 | 1,917,000 | — | 1,917,000 |
| Total | 6,509,932 | 20,490,068 | 27,000,000 | 7,120,000 | 19,880,000 | 27,000,000 |
§ surplus of estimated revenue over estimated expenditure in the current year. The £3,000,000 received from the Transvaal, as described in the Question, was orginally advanced from the Exchequer balance, and was therefore, when received, paid back into the balance. This transaction is complete in itself. It does not in any way affect last year's deficit of £5,415,000, which is provided for as explained above.