It will be noticed that the estimated deficit for 1903 was some £E390,000, and this is Egypt’s contribution towards the current expenses of the year. The same sum was contributed in 1902, and it has been agreed that this subsidy shall be continued at the same figure for some years to come. The approximate amounts so expended in former years were: 1899, £E385,000; 1900, £E417,000; and the same in 1901. On the basis of this contribution, which is called ‘Insuffisance,’ the estimates for the Soudan are drawn up. Considering all the difficulties in the way of accurate calculations, it speaks well for the Soudan officials that their expectations have been so nearly realized. In 1899 and 1900, when the accounts were finally made up, there were found to be deficits of £E23,000 and £E40,000. But in 1901 the finances of the country took a great turn for the better, and, although expenditure exceeded the estimate, this excess was so much overbalanced by unforeseen increase of receipts that sufficient surpluses were realized in 1901 and 1902 to make good the deficiencies of the two previous years. During the years 1899-1903 Egypt has therefore expended close upon £2,000,000 in these annual grants; she has also paid over, partly as special credits and partly as loans, another £1,000,000 for capital expenditure on railways and telegraphs, as already mentioned. There are deductions to be made from this sum of £3,000,000 in calculating the actual cost imposed on Egypt by the Soudan; but as these are the actual amounts on which the Soudan Budget is calculated, they must be set down here. It sounds, perhaps, a strange thing to say that the Soudan finances are in a sound condition when such sums have to be contributed by Egypt, but such is certainly the fact. The great feature is the recuperative power of the country, so markedly displayed since 1901, and there can be no doubt that if, with Egypt’s help, the two principles of low taxation and irrigation can be steadily applied, they will produce, if not as great, yet a similar result to that which they have produced in Egypt itself. CHAPTER XXII THE COST OF THE SOUDAN TO EGYPT