The main facts of Mr Gladstone’s financial statement are briefly as follows. Warned by the strong expression of opinion on the part of the House in favour of a reduction of expenditure, the Government resolved to anticipate farther opposition by curtailing the estimates which the House had so reluctantly voted, and last year spent about £800,000 less than they had taken power to do. In respect to the Revenue, Mr Gladstone’s estimates were singularly at fault. As on previous occasions, his estimate of the Excise greatly exceeded the actual return, which this year has fallen short of his estimate by more than a million sterling. But the Income-tax yielded nearly half a million more than he calculated, and so have the Customs; and the total produce of the national taxes has been so favourable as to leave a surplus of about £400,000 above the estimate, and an excess of £1,300,000 above the expenditure. The revenue of the past year amounted to £70,603,000, the expenditure was £69,302,000: surplus £1,301,000. If the taxes were to remain on the same footing this year, they would yield (according to Mr Gladstone) £71,490,000; and he proposes some trifling new taxes amounting to £133,000: together equal to £71,623,000. And as the estimated expenditure for the ensuing year is only £67,749,000 (£1,553,000 less than last year’s), the surplus at the end of the ensuing year, if the taxes were kept at their present rate, would be £3,874,000. But the proposed reductions of taxation, chiefly on the Income-tax and Tea-duties, will cause a loss of revenue in the ensuing year to the extent of £3,343,000; so that the actual surplus, as estimated by Mr Gladstone, will be £531,000. The Budget stands thus: REVENUE. Customs, £22,737,000 Excise, 17,658,000 Stamps, 9,000,000 Taxes, 3,160,000 Income-tax, 8,675,000 Post Office, 3,800,000 Crown Lands, 300,000 Miscellaneous, 2,950,000 ——————————— £68,280,000 EXPENDITURE. Debt, £26,333,000 Consolidated Fund, 1,940,000 Army, 15,060,000 Navy, 10,730,000 Collection, 4,721,000 Miscellaneous, 8,965,000 ——————————— £67,749,000 Surplus, £531,000.