1. As the final figures for the fiscal year 1941-42 are not as yet available, all statements dealing with revenues, expenditures, investments and balance sheet items are estimated. It is expected that when the books of the year are finally closed, any variations from the figures shown herein will be of slight importance. 2. The following tables show, by main categories and in detail, revenues, expenditures and the increase in net debt for the fiscal year 1941-42, together with comparable figures for the four preceding fiscal years: |

The Budget-Appendix STATEMENT OF REVENUES FOR THE LAST FIVE FISCAL TEARS (000 omitted) - 1937-38 1938-39 1939-40 1940-41 Estimated 1941-42Tax Revenues- Customs import duties $ 93,456 $ 78,751 $ 104,301 $ 130,757 $ 142,392Excise duties- Spirits, malt, etc Cigars, cigarettes and tobacco Licences 19,626 32,837 38 18,530 33,225 34 21,267 40,557 35 34,140 55,417 45 46,777 65,050 39Less refunds 52,501 464 51,789 475 61,859 827 89,602 994 111,866 1,775Excise taxes- Sales Manufacturers- Automobiles,rubber tires and tubes Gasoline Cigars, cigarette papers and tubes. Beverages Matches and lighters Sugar Toilet preparations and soap Electric and gas appliances Phonographs, radios and tubes Sundry Amusements Tax on pari mutuel bets Special excise (importations).... Transportation and communication.. Stamps, licences, interest, etc War exchange 52,037 51,314 61,032 88,608 110,091141,864 1,453 1,428 1,769 10,833 1,224 477 18,622 1,727 5,231 125,927 I, 343 1,575 1,819 II, 004 1,249 465 15,591 1,640 4,885 141,121 1,568 2,009 2,135 12,302 1,371 732 1,979 1,657 4,829 184,536 11,206 3,601 2,173 11,894 1,542 1,886 1,289 1,340 1,008 1,848 4,747 61,932 246,553 16,742 24,752 4,281 6,247 2,766 22,009 3,539 8,470 2,361 2,322 7,710 1,082 861 8,131 5,095 100,874Less refunds 184,628 3,809 165,498 3,787 169,703 3,675 289,002 4,835 463,795 10,369Income tax- Individuals Corporations Dividends, interest, etc 180,819 161,711 166,028 284,167 453,42640,445 69,769 10,152 46,937 85,186 9,903 45,407 77,920 11,122 75,863 131,566 13,042 189,502 185,836 28,269National defence tax Excess profits tax Succession duties Banks, Insurance Companies, etc.- Chartered banks. Insurance companies Miscellaneous 120,366 142,026 134,449 220,471 403,6071,107 867 509 1,014 891 587 949 926 586 27,672 23,995 898 972 673 106,637 135,168 6,957 787 1,148 702Total Revenue from taxes 449,161 436,294 468,271 778,213 1,360,915Non-tax Revenues- Post Office Return on investments Bullion and coinage Premium, discount and exchange . 35,546 . 14,465 . 1,715 27 . 9,386 35,288 14,407 2,052 477 9,499 36,728 14,617 3,756 7,939 10,306 40,383 17,592 6,266 6,107 11,194 45,994 25,830 4,765 11,780 14,200Total non-tax revenue . 61,137 61,723 73,346 81,542 102,569Total ordinary revenues . 510,298 498,017 541,617 859,755 1,463,484 The Budget-Appendix

STATEMENT OP REVENUES FOR THE LAST FIVE FISCAL YEARS-Concluded (000 omitted) Special Receipts and Other Credits- Consolidated Fund-[DOT] Refunds of previous years' special expenditure Refunds of previous years' war expenditure War donations Special receipts arising out of the war. Canadian National Railways- Operating surplus for calendar year 1941 Capital gain on redemption of 4% debenture stock Canadian National (West Indies) Steamships Ltd.- Operating surplus for 1930 and 1937.. Dominion stock "A" written off.... Montreal Turnpike Trust Accountadjustment Surplus value of free lands and reclaimed leases previously held in the Soldier I -and Settlement Assurance Fund transferred to Consolidated Revenue Fund Inventory value of stores on hand in the Department of Transport as at April 1, 1937, credited to Consolidated Revenue Fund pursuant to Department of Transport Stores Act, 1937 Total Consolidated Fund. 1938-39 1,184 Capital Accounts- Refunds of previous years' expenditure Net insurance proceeds on the P.E.I. Car Ferry Non-active Accounts- Canadian Government Merchant Marine, Limited- Balance in Contingency Reserve National Harbours Board- Reduction in indebtedness Write-downs to Consolidated Fund- Seed Grain and Relief Loans.... Relief Loans to Province of Manitoba Relief Loans to Province of Saskatchewan Soldier and General Land Settlement Loans Canadian National Railways Securities Trust Stock- Line abandonments Net capital loss on sale of S.S. Prince David and S.S. Prince Robert Net credit resulting from Canadian National Railways Capital Revision Act, 1937 Total Special Receipts and Credits. Grand Total Revenue 1,232

24 798 3,010 1,543 805 1,221 1,410 5,504 1,256 164 1,023 6,395 515,693 127 2,713 8,538 4,154 502,171 17,682 2,600 20,477 562,094 2,334 1,475 12,414 872,169 Estimated 102 7,826 459' 1,649 4,016 14,151 984 58 2,539 17,801 1,481,285

The Budget-Appendix STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST FIVE FISCAL YEARS (000 omitted) Ordinary Expenditorb Agriculture Auditor General's Office Civil Service Commission External Affairs, including Office of Prime Minister Finance- Interest on Public Debt Cost of Loan Flotations and Annual Amortization of Bond Discounts and Commissions Subsidies to Provinces Special Grants to Provinces War-time Prices and Trade Board- Dominion Fuel Board Administration, coal subsidies and subventions Miscellaneous Grants and Contributions Civil Pensions and Superannuation... Government contribution to Superannuation Fund Old Age Pensions, including pensions to blind persons Compensation to Provinces under Dominion-Provincial Taxation Agreements Administrative and Sundry Expenditure Fisheries Governor General and Lieutenant Governors Insurance Justice Penitentiaries Labour Technical Education Unemployment Insurance Act, 1940- Administration Government contribution Government Annuities- Payments to maintain reserve Legislation- 4 House of Commons Library of Parliament Senate General Dominion Franchise Office Chief Electoral Officer, including elections Mines and Resources- Adm inistration Immigration and Colonization Indian Affairs Lands, Parks and Forests Surveys and Engineering Mines and Geological Survey Movement of Coal and Subsidies under Domestic Fuel Act Munitions and Supply National Defence- Administration Militia Service Naval Service Air Service Sundry Services National Revenue (including Income Tax) _ ' National War Services Pensions and National Health- Administration Treatment and after-care of returned soldiers 9,017 358 1,450 132,118 4,555 13,735 7,475 712 2,005 28,653 3,573 1,850 187 2,790 2,577 49 8,941 1,516 536 76 (') 1,491 1,103 4,897 1,910 933 658 2,521 17,221 4,372 10,018 1,149 11,870 12,109 9,527 379 1,057 127,996 4,914 13,752 7,475 638 2,220 29,044 3,689 2,036 194 2,748 2,675 27 1,800 600 50 0) 184 1,335 5,305 2,249 1,325 1,340 1,921 (3) 409 15,772 6,590 11,216 447 11,899 (3) 118 13,453 11,817 398 1,220 129,315 4,992 13,769 5,475 660 2,271 29,977 3,966 2,320 195 2,725 2,941 31 1,286 432 6S (*) 186 1,338 5,675 2,116 1,301 1,324 4,532 (3) 178 5,997 1,869 4,852 295 12,064 (3) 132 14,771 Estimated 8,593 397 1,013 139,179 6,304 13,769 5,475 500 2,316 29,912 3,508 1,018 176 2,711 2,717 18 111 2,468 808 2,469 (*) 179 1,273 5,183 1,937 1,114 1,173 4,408 (3) 30 12,229 (3) 133 13,402

8,437 401 1,055 154,270 16,430 14,409 («) 4,880 533 445 2,347 29,612 21,120 3,513 1,084 180 2,658 2,786 41 2,345 7,287 1,408 424 281 (>) 170 1,287 4,979 1,963 1,175 1,153 (2) (3) 38 13,430 (3) 137 12,733 The Budget-Appendix

for the last five fiscal years-Continued (000 omitted) - 1937-38 1938-39 193940 194041 Estimated 194142Ordinary Expenditure-Continued S $ $ $ $Pensions and National Health-Cone. Pensions. War and Military 42,240 42,181 42,219 41,515 40,582Health Division 957 1,012 1,113 1,111 1,249Post Office 33,762 35,456 36,726 38,700 41,495Privy Council 48 49 59 54 54Public Archives 170 159 150 126 193Public Printing and Stationery 161 191 199 283 195Public Works 12,382 15,484 13,065 11,507 11,936 6,021 813Royal Canadian Mounted Police 0,308 6,145 5,626 5,554 Secretary of State 093 730 836 772 Soldier Settlement 801 758 624 582 564Trade and Commerce 4,070 4,763 4,999 4,315 (<) 6,200 1,909 616C anada Grain Act 1,675 1,847 1,933 1 908 Mail Subsidies and Steamship Subventions T ransport- 2,029 1,993 1,907 942 Administration 417 371 358 334 364Air Service 2,935 3,457 3,862 3,478 3,414Marine Service 4,290 4,271 4,215 3,795 4 013('anadian Travel Bureau 250 249 312 470 (5)-3 697Railways and Canals 3,661 4,371 3,763 3,527 Maritime Freight Rates Act ' 3,183 2,583 2,660 3,951 126 3,935Railway Grade Crossing Fund 180 187 255 25Total ordinary expenditure 414,892 413,032 398,323 390,629 443,969Capital Expenditure Railways 71 26 23 7 5Public Works 4,359 5,398 7,007 3,351 3,352Total Capital Expenditure 4,430 5,424' 7,030 3,358 3,357War Expenditure War (see sections 17 to 27) - - 118,291 752,045 1,351,553Special Expenditure Unemployment Relief- Administration-Relief Acts 378 260 287 236 109Grants-in-aid to Provinces 19,493 17,037 Material Aid to Provinces, including municipal improvements projects... 19,534 15,785 1,856 487Dominion share of joint Dominion-Provincial projects 8,841 6,259 7,147 1,794 Dominion projects 13,913 12,981 24,919 9,784 5,948Transportation facilities into mining areas 1,324 1,213 1,121 48 43,949 37,750 53,008 27,647 8,393 Prior to 1937-38 general administration expenses were not segregated from other expenditures of respective services of the departments which were amalgamated to form the Department of Mines and Resources. \ he figures from 1938-39 represent only Departmental Administration, other administration costs being included as in other departments, under the respective services. (2) For current year see Department of Finance. (3) Prior -to 1938-39 general administration expenses were not segregated from other expenditure of the respective services of the departments. (4) Includes an estimated amount, of S2,565,000 for Census of population of Canada. (6) For current year included in National War Services. (6) For previous years included in Departments of Trade and Commerce and Mines and Resources.

The Budget-Appendix STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST FIVE FISCAL YEARS-Continued (000 omitted) - 1937-38 1938-39 1939-40 1940-41 Estimated 1941-42S $ % $ $Special Expenditure-Continued Western Drought Area Relief- Direct Relief 11,925) 8,869 1,605 Feed and fodder and freight thereon - Expenses of marketing cattle 11,352/ 337 - -Purchase and distribution of foodstuffs 972 277 - - -Prairie Farm Assistance Act, 1939- Administration - 346 420Advances to Prairie Farm Emergency Fund 7,500 4,376 11,836Wheat acreage reduction payments.... - - 29,65924,586 9,146 9,105 4,722 41,915Provision for reserve against estimated losses on 1938 wheat marketing guarantees 25,000 27,000 Provision for reserve to meet deficits resulting from the operations of the Canadian Wheat Board calculated as at July 31,1940 and 1941, respectively, not previously provided for 10,500 12,571Total special expenditure 68,535 71,896 89,113 42,869 62,879Government Owned Enterprises Losses charged to Consolidated Fund- Canadian National Railway System, ex-eastern lines 37,882 48,194 34,850 14,451 Eastern lines 4,464 6,120 5,245 2,514 -Prince Edward Island Car Ferry and Terminals __ (i) 388 427 461 424National Harbours Board 289 138 94 40 33Trans-Canada Air Lines 111 818 412 - [DOT] -Central Mortgage Bank - - 16 Total charged to consolidated fund 42,746 55,658 41,044 17,466 457Loans and advances non-active- Canadian National Steamships 104 6 8 _ National Harbours Board 1,983 3,279 1,027 716 758Total non-active advances 2,087 3,285 1,035 716 758Total government-owned enterprises 44,833 58,943 42,079 18,182 1,215Other Charges Write-down of assets chargeable to Consolidated Fund- Drought Area Relief Loans, 1934-35- Province of Saskatchewan 1,374 Reduction of soldier and general land settlement loans 750 1,023 " 1,64.3 1,011 271Yearly established losses in seed grail and relief accounts-Department o Mines and Resources 14 18 10 46 58 (>)Included with Eastern lines in previous years. The Budget-Appendix

STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST FIVE FISCAL YEARS-Concluded (000 omitted) - 1937-38 1938-39 1939-40 1940^1 Estimated 1941-42Other Charges-Concluded Canadian National Railways Securities Trust Stock-Reduction due to line abandonments during calendar $ $ $ $ *years 1938, 1939, 1940 and 1941 Canadian National Railways Securities Trust Stock-Capital loss (exclusive of loss applicable to expired service life) on sale of S.S. Prince David and (2) - 2,713 2,600 2,334 2,539Prince Robert Cancellation of Canadian Farm Loan Board- - 1,475 -Capital Stock 10 14 11 12 10Province of Manitoba Treasury Bills.. Province of Saskatchewan Treasury (*) 805 - Bills To provide a reserve for possible losses on ultimate realization of Active " (8) 17,682 - -Loans and Advances Non-Active Accounts- - - - 25,000 25,000General Land Settlement Loans Fulfilment of guarantees- Saskatchewan Seed Grain Loans, 1936 139 - -and 1937 Canadian National Railways Securities Trust Stock- Increase in Dominion's Equity in the Canadian National Railways due to capital gain on redemption of £22,500,000 G.T.R. 4% Perpetual 2,638 7,136 Debenture Stock Increase in Dominion's Equity in the Canadian National Railways due to surplus earnings of Canadian National Railway System for cal- 5,504 99endar year 1941 - - - - 4,016Total other charges 1,718 3,768 25,958 42,518 31,993Grand total expenditures 534,408 553,063 680,794 1,249,601 1,894,966(2) An amount of $711,000 representing line abandonments during the calendar year 1937 was included in the adjustments resulting from the Canadian National Railways Capital Revision Act, 1937.(3) These amounts are offset by a contra account on the revenue side. [Mr. Usley The Budget-Appendix SUMMARY OF REVENUES AND EXPENDITURES (000 omitted) - 1937-1938 1938-1939 1939-1940 1940-1941 Estimated 1941-42Ordinary revenues Ordinary expenditures $ 510,298 414,892 $ 498,017 413.032 S 541,617 398,323 % 859,755 390,629 $ 1,463,484 443,969Surplus on ordinary account 95,406 84,985 143,294 469,126 1,019,515War and special expenditures Less special receipts 68,535 3,010 71,896 1,256 207,404 164 794,914 8,538 1,414,432 14,151Balance Add-Capital expenditures " Government owned Enterprises... " Other charges 65,525 4,430 44,833 1,718 70,640 5,424 58,943 3,768 207,240 7.030 42,079 25,958 7S6.376 3,358 18,182 42,518 1,400,281 3,357 1,215 31,993Less other credits 116,506 3,385 138,775 2,89S 282,307 20,313 850,434 3,876 1,436,846 3,650Deduct surplus as above 113,121 95,406 135,877 84,985 261,994 143,294 846,558 469,126 1,433,196 1,019,515Over-all deficit or increase of direct net debt 17,715 50,892 118,700 i 377,432 413,681

3. When the books for the fiscal year 1941-42 are finally closed, total revenues will reach, it is estimated, an all-time record of $1,481,285,000. This represents an increase over the preceding fiscal year of no less than $609,- 116,000 or approximately 70 per cent. The chief reasons for this very substantial increase were the new taxes and the increases in old tax rates imposed by the last budget and the higher level of national income and production due to heavy expenditures for war purposes. In addition, there were less important increases in the yield from income taxes due to changes in the time and method of collection. As a result of the last budget, the due date for personal income taxes was moved back from April 30 to March 31 and the prepayment instalment plan became effective in September 1941, thus providing for seven monthly payments during the fiscal year for those who adopted the plan as compared with only three monthly instalments in the preceding fiscal year under the instalment plan which began in January 1941. 4. The five-year table of revenues shown on page 4 is in the same form as was used last year. This table is divided to show tax revenues under appropriate headings with subheadings for Excise Duties, Excise Taxes and Income Taxes. The non-tax revenue section is broken down under five main headings. 5. Total revenues from taxation for the fiscal year ended March 31, 1942, are estimated at $1,360,915,000 compared with $778,213,000 collected during the previous year. This total represents 92 per cent of the total estimated revenues. An examination of the five-year table discloses that direct taxes on incomes realized $645,412,000 compared with $272,138,000 during the previous year. While, in 194041, direct taxes represented 35-0 per cent of the total revenue from taxes, they represented 47-4 per cent of total tax revenues in 1941-42. This comparison illustrates the increasing reliance upon the direct taxation of incomes. Because of the change in the due date of personal income taxes from April 30 to March 31, and the longer period in which the prepayment instalment plan was in operation during 1941-42, an accurate comparison of receipts from personal income taxes during 1941-42 with the amounts received in previous years cannot be made. 6. As a result of the Budget of April 29, 1941, the Dominion levied succession duties for the first time. The yield of this new tax amounted to $6,957,000. This compared with a rough estimate of $10,000,000 given in last year's Budget. 7. The total revenue from sales tax, less refunds, is estimated at $236,184,000, an increase of $56,483,000 as compared with the previous year. Part of this increase was the result of removing building materials from the exempt list (effected by the Budget of April 1941) but for the most part it reflects the higher level of activity brought about by increasing expenditures for war purposes. The Budget-Appendix

8. The war exchange tax is expected to realize a total revenue of $100,874,000 compared with 861,932,000 received during the previous year. 9. Other excise taxes as set out in the five-year table are estimated to produce $116,368,000, an increase over the previous year of $73,834,000. Excise taxes derived from new imposts realized $44,937,000 as follows: gasoline $24,752,000; amusements $7,710,000; parimutuel bets $1,082,000; soft drinks $6,247,000; and travel $5,146,000. The remainder of the increase, namely $28,897,000, is accounted for by business expansion and by increased excise taxes on automobiles, cigarette papers and tubes, lighters, playing cards, sugar, toilet preparations, wines and long distance telephone calls, etc. 10. Revenues from customs import duties for the year just closed are estimated at $142,- 392,000 compared with $130,757,000 received during 1940-41. This increase is due largely to increased imports arising out of the war. _ 11- Receipts from excise duties mainly on liquor and tobacco, are expected to total $110,091,000, an increase of $21,483,000 over the previous fiscal year. The gross duty on spirits, malt, etc., is estimated at $46,777,000 and that on tobacco at $65,050,000. 12. Total non-tax revenues are estimated at $102,569,000 compared with $81,542,000 in the previous year. The largest non-tax item is the receipts from the Post Oifice which it is expected will total $45,994,000, an increase of approximately $5,611,000 over the preceding fiscal year. The receipts from the. Post Oifice will, it is expected, exceed the cost of operations by $4,500,000. As mentioned in previous Budget Speeches, the Post Office accounts do not include the rental value and other costs of premises occupied and equipment used, nor do they include any credit to the Post Oifice for services rendered to other departments for the free use of the mails. Other increases in the non-tax section were recorded under the headings of Premium, Discount and Exchange, and Return on Investments. The increase in Premium, Discount and Exchange was due to repatriation of sterling securities and the increase in Return on Investments was accounted for mainly by interest on increased loans to the Foreign Exchange Control Board and the Canadian National Railways. 13. The total amount shown for the fiscal year 1941-42 under the heading, Special Receipts and Credits, is $17,801,000. Of this, total cash receipts account for $11,089,000 as follows: refunds of previous years' war expenditures $7,826,000; voluntary donations for war purposes $459,000; insurance moneys received on loss of Prince Edward Island Car Ferry $984,000; and sundry receipts $1,820,000. The remainder amounting to $6,712,000 represents bookkeeping items which affected the book value of the Canadian National Railways Securities Trust Capital Stock and certain other non-active assets. All of these items making up the total of $6,712,000 are offset by contra amounts appearing on the expenditure side under the heading, Other Charges. The first of these items is that affecting the book valuation of the Canadian National Railways Securities Trust Capital Stock which was increased by $4,115,000, due to (a) surplus earnings of The Canadian National Railway System for the calendar year 1941, amounting to $4,016,000, and (b) the capital gain arising from redemption of Grand Trunk Railway 14 per cent Debenture Stock at less than par in Canadian funds amounting to $99,000. In addition, there were two other transactions affecting the non-active accounts: Canadian National Railways Securities Trust Capital Stock was reduced by reason of line abandonments during the year 1941 in the amount of $2,539,000, and the sum of $58,000 representing the yearly established losses in the seed grain and relief accounts of the Department of Mines and Resources was written off. 13a. The table below gives a summary of the forecasts made at the time of the last Budget of the probable receipts from various sources of revenue during the fiscal year 194142 and a comparison of these forecasts with the present estimates of actual receipts during the fiscal year. It will be noted that there is shown in the first column the forecast of expected receipts from the tax structure as it existed before the Budget of April 29, 1941, was brought down in the House, while the second column gives the expected receipts from the tax structure as affected by the proposals made in the Budget, and the third column the expected receipts from the tax structure as amended by the legislation finally passed by Parliament. Under the conditions which have prevailed since the outbreak of war, with production and employment expanding rapidly and with prices rising (until last December), it has been very difficult to make accurate forecasts of the yield from various types of taxation. Budgetary authorities must always be cautious in predicting the probable magnitude and results of expanding economic activity and rising national income. It is always wise to err on the side of conservatism rather than undue optimism. It will be noted from the table that while there were under-estimates or overestimates of some proportions in the case of individual revenue sources, these cancelled each other out to a considerable extent. The total yield from taxation was under-estimated by only $4,815,000. The Budget-Appendix Some comments may be made in regard to the probable explanation for the major differences as between the forecasts and the estimated actual results. The increase in customs duties as compared with the forecast was due to a higher level of prices and a greater volume of imports than had been anticipated. The increase in excise duties was due to a higher volume of sales than had been expected while the substantial increases in the various excise taxes were due not only to a greater volume of business but also to higher prices than had been anticipated. The close estimate of the yield of the national defence tax indicates substantial accuracy in forecasting the level of personal incomes and the underestimate of the yield of the graduated tax on personal incomes is chiefly due to the facts (a) that a smaller proportion of taxpayers than was expected took advantage of the prepayment instalment plan, and (b) that many returns mailed on March 31st were not received in sufficient time to be included in receipts for the fiscal year 1941-42. The difficulty of making accurate allowance in advance for the effects of the pre-payment instalment plan was probably also the main explanation of the under-estimate of the yield from the corporate income tax and the overestimate of the yield from the excess profits tax although other factors may also have been operative in the case of the latter including probably the fact that depressed businesses were allowed to calculate and pay their tax on the minimum basis pending final determination of standard profits by the Board of Referees. In comparing the forecast with the actual yield from succession duties, it should be remembered that this was an entirely new tax and there was no experience to go upon in preparing the forecast. Perhaps, also, insufficient account was taken of the time necessarily involved in securing full payment of succession duties. In any case, fluctuations in the yield of succession duties are almost impossible to predict in advance. Reference was made in an earlier paragraph to the increase in non-tax revenues. This resulted from a substantial increase in Post Office receipts, a large increase in Premium, Discount and Exchange arising out of the heavy repatriation operations and the increase in return on investments due to advances to the Foreign Exchange Control Board and the Canadian National Railways. It is impossible to predict the amount of special receipts and credits that may accrue in any fiscal year and it has not been the practice to attempt any estimate of this category of revenues.

Source of Revenue Forecast of Receipts Actual Receipts (Prelim- inary) Increase (+) or decrease (-) in receipts as compared with final forecastFrom tax structure before Budget changes From tax structure as changed by proposals made in Budget of April 29, 1941 From tax structure as amended in Parliament Tax Revenues Customs duties Excise duties 000 omitted S 137,000 98,000 000 omitted S 137,000 101,200 000. omitted $ 137,000 101,200 000 omitted S 142,392 110,091 000 omitted +5,392 +8,891Excise taxes: Sales tax War Exchange tax Other excise taxes Total excises taxes.... Income taxes: Graduated tax on personal incomes National defence tax Corporate income tax Excess profits tax Interest and Dividends Total income taxes.. Succession duties Miscellaneous taxes Total Tax Revenues Non-tax Revenues Special Receipts and Credits. Grand Total 190.000 81.000 51,000 203,500 81,000 108,800 203,500 81,000 113,900 236,184 100,874 116,368 +32,684 +19,874 +2,468322.000 135.000 55.000 165.000 140.000 15.000 393,400 225.000 110.000 165.000 180.000 42,500 398,400 225.000 110.000 165.000 180.000 27,500 453,426 189,502 106,637 185,836 135,168 28,269 +55,026 -35,498 -3,363 +20,836 -44,832 +769510,000 2,000 1,069,000 81,000 722,500 10,000 2,000 1,366,100 81,000 (no estimate 707,500 10,000 2,000 1,356,100 81,000 made) 645,412 6,957 2,637 1,360,915 102,569 17,801 -62.0S8 -3,043 +637 +4,815 +21,569 + 17,8011,150,000 1,447,100 1,437,100 1,481,285 +44,185 The Budget-Appendix

14. The comments which follow will deal with expenditures classified by the usual main categories: (1) Ordinary Expenditures; (2) Capital Expenditures; (3) War Expenditures; (4) Specal Expenditures; (5) Operating Deficits of, and Non-active Advances to Government-owned Enterprises; and (6) Other Charges. All disbursements under these headings with the exception of active loans and investments chargeable to War Appropriation Acts, are included as expenditures in arriving at the over-all deficit or increase in net debt.

15. It is estimated that ordinary expenditures for the year will total 8443,969,000, of which such uncontrollable and contractual items as interest and other charges on the public debt, pensions, unemployment insurance, post office, subsidies and payments to provinces under the Dominion-Provincial taxation agreements will aggregate 8330,342,000, approximately 74 per cent of the total. The remaining 26 per cent represents general administrative expenses and other services of government charged to Ordinary Expenditures. The above estimated total of 8443,969,000 is greater than the actual amount of ordinary expenditures during the previous fiscal year by $53,340,000. It may be noted, however, that this increase is due in considerable part to increased expenditures which are really due to the war itself, including the following as the more important items: Increased Interest on Public Debt.. .$15,091,000 Increased Cost of Doan Flotations and Annual Amortization of Bond Discount and Commissions 10,126,000 Compensation to Provinces under the Dominion-Provincial Taxation Agreements 21,120,000 Increase m Administrative Cost, Department of National Revenue.. 1,201,000