The main items of expenditure were—
| £ | |
| Interest on loans | 34,000,000 |
| War Office | 38,000,000 |
| Navy | 10,000,000 |
| Ministry of Finance | 34,000,000 |
| „ „ Interior | 13,000,000 |
| „ „ Communications | 48,000,000 |
| „ „ Education | 4,000,000[6] |
But besides these items of ordinary expenditure there remained—
| £ | |
| Extraordinary War disbursements | 40,000,000 |
| Famine relief | 3,000,000 |
The true deficit for the year amounted to at least £80,000,000, and would probably be nearer £90,000,000. In spite of the large foreign loans the gold reserve had fallen from £106,000,000 in February, 1904, to £94,000,000 in December, 1905, and the paper in circulation had risen from £59,000,000 to £143,000,000 in the same period.
On February 21st the trial of Lieutenant Schmidt for the mutiny at Sevastopol began in Odessa. On March 3rd he was sentenced to be hanged.
On February 26th, an Imperial Ukase fixed May 10th as the date for the Duma, the total number of members being 476, of which 412 would represent European Russia, exclusive of Poland.
On March 5th, the elections began among the peasants of the St. Petersburg province.
On March 6th, an Imperial Manifesto was published reorganizing the old Council of the Empire, and further limiting the powers of the Duma. The Council of the Empire was now to consist of an equal number of elected and nominated members. The elected members would represent the Zemstvos, the Holy Synod, the Universities, the Bourse, the nobility, and the landowners of Poland. Both the Council and the Duma would be convoked and prorogued annually, and have equal legislative powers in introducing bills, but every measure must be passed by both the Council and the Duma before it could be laid before the Tsar.
When the Duma was not sitting the Committee of Ministers might conduct legislation not involving any change in the fundamental laws of the Empire.