§ Passing to expenditure, the Estimates for Supply Services have already been presented to the House. The totals are large, and no Chancellor of the Exchequer would desire to pretend that they are anything but formidable, or that it is not disappointing that further reductions have not yet been possible. At the same time, I would invite the Committee, and our critics, not to forget that the Supply expenditure, for 1919–20 represented a reduction of nearly 60 per cent. on that of the previous year, and that the Supply Estimates for the current year show a further reduction of some 35 per cent. on those of last year. In particular, the Committee will observe that the Army Estimates are reduced from £405,000,000 to £125,000,000, the Navy Estimates from £157,500,000 to £84,400,000, and the Air Estimates from £54,000,000 to £21,000,000. Moreover, the total of Supply Estimates includes £43,000,000 for the Ministries of Munitions and Shipping, for which only token sums were taken last year. Finally, the Estimates for the year necessarily still contain a very considerable provision for War charges. On the Votes of the Fighting Services alone this accounts for £56,500,000, excluding the cost of the additional garrisons in Mesopotamia, Egypt, and elsewhere. There are, in addition, many charges of a temporary nature in this year's Estimates, which are directly or indirectly due to the War, such as loans to Allies or for relief, the training, and resettlement of ex-soldiers, the cost of the temporary Ministries, liquidation of War contracts, and, last, but greatest of all, the Bread Subsidy. These and similar items of extraordinary expense impose a transitory charge of over £300,000,000 on the Estimates of the current year, and cancel any assistance that I might otherwise have obtained from the extraordinary Miscellaneous Revenue for the reduction of debt. The expenditure will thus be as follows: The Consolidated Fund Services, inclusive of £345,000,000 for interest on the National Debt, but exclusive of any Sinking Fund, amount to £369,548,000; and the Supply Services, as presented to the House, amount to £787,904,121. To this I must 79 now add a further sum of £20,000,000, partly to cover the extra cost of Unemployment Insurance, as provided in the Bill now before the House, and partly to cover the cost of certain agreements with the Dominions of Australia and New Zealand with respect to the Island of Nauru, with regard to which a Bill will shortly be presented to the House by the Colonial Office; but mainly in order to provide the cost of re-classification and further war bonus throughout the public service. I thus reach, in round figures, an expenditure of £1,177,452,000, against a revenue of £1,341,650,000, leaving, on the existing basis of taxation, £164,000,000 for the reduction of debt.