face page 307

30

For a detailed account of this Scale see the Explanation

TOTAL EXPENDITURE

APPENDIX, A.

Being a more detailed Explanation of the accompanying Scale, exhibiting the Linear Proportions which exist among different Branches of the Public Expenditure of Great Britain and Ireland, during the Year 1825.

No. 1 is the centre column, and represents the total expenditure of the country, which, with a slight exception, is defrayed from the proceeds of taxation, 60,154,135l.

No. 2, on the right of the centre column, is the line which represents the annual interest and expenditure incident to the national debt, 39,801,0317., including all such charges as, in strict principle, ought to be considered as parts thereof.

No. 3 represents the portion of the public expenditure apparently under the control of the government, including the civil, military, and naval establishments, 20,353,106l.; but the part dotted represents the charge for collecting that portion of the revenue which is made necessary by the payment of the interest of the national debt.

No. 4 represents the portion of the public expenditure connected with the collection of the revenue, as exhibited in the public accounts, 5,245,8761., which together with 351,556l. for the pensions and superannuation allowances, compose the 5,597,4321. Vide Finance Accounts.*

No. 5 represents the expenditure of the army, 4,672,690l., deducting the half-pay and pensions, 2,906,9411., total 7,599,8311. Vide Finance Accounts.

=

No. 6 represents that of the navy, 4,255,490l. deducting halfpay and pensions, = 1,593,629l., total 5,849,119l. Vide Finance Accounts.

No. 7 represents the expense incurred for certain miscellaneous services detailed in the public accounts, 2,702,122l., deducting the pensions and superannuation allowances, 76,8901., total, 2,779,012. Vide Finance Accounts.

=

No. 8 represents the expenditure of the ordnance, 1,193,604l., deducting half-pay and pensions, = 373,4831., total 1,567,0871. . No. 9 represents that of the civil list, 1,057,000l.

The whole Revenue collected being

The expense of collecting which is stated to be

The net Revenue therefore is

£57,662,812

5,245,876

£52,416,945

But of this net revenue there was payable to the national creditor 39,801,0317., the proportion of collecting which is 3,983,2781. This last sum, then, must be subtracted from the 20,353,106,, composing the total annual expenditure for which government is strictly responsible, and this sum will be reduced to 16,369,8287., including the expense of 1,262,5981, for its collection..

X 2

No.

No. 10 represents the amount of advances for certain services in Ireland, and elsewhere, as detailed in the public accounts, 1,022,3341.

No. 11 represents the amount of salaries paid in various miscellaneous departments of government, 203,9891.

On the left of the centre column

No. 12 represents the linear proportion of a saving to be effected by a reduction of ten regiments, = 252,3301.

No. 13 represents, in a similar manner, the saving to be effected by a reduction of four thousand men in the navy, = 218,400l. No. 14 represents the proportion of a saving of 119,330l., or ten per cent., on the expenditure of the ordnance.

No. 15 represents the proportion of a saving to be effected by the reduction of five hundred junior clerks in the different establishments of government, = 75,000l.

No. 16 represents the proportion of a saving of 20,100l., to be effected by a reduction of ten per cent. on the salaries of various public functionaries, 20,100l.

No. 17 shows the linear proportion of these assumed reductions, when added to each other, = 685,160.

And No. 18 exhibits the linear proportions of the savings which have been effected by the various reductions of annual taxation, which the government have accomplished since the period of the war, viz.,

Remission of direct taxes
Taxes on articles of consumption

Taxes for the relief of trade, &c.

Deduct taxes imposed in 1819 upon malt, tea, tobacco, &c.

£18,177,000

7,620,000

4,915,000

£30,712,000

3,190,000

£27,522,000

Observations, explanatory of the reasons of some variations between the sums indicated on the scale, and those in the Financial Accounts.

The revenue collected from taxes, during the year 1825,

was

The difference between the balances retained by the receiver, at the commencement and the close of the financial year, was equal to the additional receipt of revenue to the amount of.

Making the ordinary annual revenue to be

£57,374,977

287,844

57,662,821

£57,662,821

Brought

Brought forward.

There was, however, a further income, derived from other sources, as will be hereafter explained, amounting to

So that the whole income was

£57,662,821

5,208,479

62,871,300

During the same financial year the ordinary expenditure was— Charges connected with national debt, viz.

£27,230,790

5,486,475

829,498

585,740

Charges connected with the collection of the revenue
Pensions by Act of Parliament charged on the con-

2,779,012

Making the ordinary expenditure to be

There was, however, a further expenditure, as will be hereafter explained, amounting to

So that the whole expenditure was

And as the whole income amounted to 62,871,300l., it follows that there was an excess of income over expenditure to the amount of

62,703,934

167,366

59,131,801

3,572,133

Sum equal to the whole income

£62,871,300

Some explanation must now be given respecting the sum of 5,208,4791., represented in the above accounts, as an extra source of income.

EXTRA

EXTRA INCOME.

Received from the Clerk of the Hanaper

from the East India Company, towards the
half-pay and pensions of the King's forces.
from the Commissioners for the employment of
the poor, as repayments of money lent
from the Trustees of Naval and Military Pen-
sions, &c.

N.B. This large item of income being connected with
the "Dead Weight Annuity," a separate explanation will
be given thereof at the end of this statement.
Received from Ireland, being repaid from the advances
made for public works and improvements in
that part of the United Kingdom

from the Exchequer, as the amount of imprests
and other monies repaid thereto

.

From which it appears, that the amount of the above sums exactly equals that which was given as the extra income requiring further explanation, viz.

£2,000

60,000

208,307

4,507,500

210,389

220,283

£5,208,479

We have now to explain the circumstances connected with one of the preceding items of extra income, amounting to 4,507,500l., stated to have been received from the trustees of naval and military pensions. The late wars had left, as a dead weight' on the national resources, a certain expenditure for pensions and half-pay, which, in 1822, was assumed to be five millions per annum; the whole of which, from the nature of the expenditure, consisted of lifeannuities, payable to several thousands of persons. After excluding all new pensions, or half-pay allowances, an estimate, on the ordinary laws of mortality, was made to ascertain the probable future amount of this five millions at the end of each subsequent year. By this estimate, the original sum of five millions would have been diminished to the sum above-mentioned, 4,507,500l., in the year 1825. Upon similar principles of calculation, it was estimated that 2,800,000l., continuing as one uniform annuity for forty-five years, would be the equivalent of the diminishing life-annuity, The bank, or any other corporation, therefore, might purchase the uniform annuity, and furnish government every year with the estimated diminishing sum. To effect this commutation, parliament appointed trustees, who were empowered to sell a long annuity of 2,800,000l., terminating in 1867; the purchasers contracting to supply the sums, estimated in the manner already explained. As yet the trustees have sold an annuity of 585,740l. only, consequently the remainder of the annuity has not as yet been called into existence,