Mr. Gorst, the Financial Adviser to the Khedive—i.e., th • Egyptian
Chancellor of the Exchequer—publishes in the official Journal of December 21st some very interesting criticisms of the Egyptian Budget. The Budget shows, he says, that th resources of the country were equal to the strain cast upon them by the war. Provision has been made for the adminis tration of the Soudan without injury to the rest of Egypt The only difficulty is in providing for expenditure upon wha may be called capital account, which for many years will b necessary. This is, of course, owing to the fact that Egyp not only cannot borrow, but cannot even use her surplus i capital expenditure. The Caisse, however, has proved liberal i regard to 1899, and has consented to invest part of th general reserve fund in reproductive public works, and i defraying certain extraordinary expenses. In five years' tin2 the Egyptian Treasury will have to meet the payment of a annuity of about £160,000 for the Reservoir. This, uncle present conditions, means that the Revenue must go up b E320,000, for the regulations as to the disposal of surpla revenue only allow Egypt to use half its surplus ; the rest goes to the Caisse. There is, however, no danger here, for th Revenue is elastic, and the Reservoir will automatically pro duce money. In Egypt the Government sell water, and th Reservoir will give them another crop of the fertilising liqui in which they deal. The Soudan will no doubt require mo; money ultimately, but this burden should not be thrown o Egypt generally. The Soudan should pay its way, and on] get improvements as it can afford them. Though, says Mr Gorst, it would be good to reduce taxation, it is evident th the fellaheen bear the present taxes easily, for their status steadily rising. "Still the fact remains that the taxation heavy, even if the burden be less felt now than in the past."
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