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From: Webster's Revised Unabridged Dictionary (1913)

 De·fal·cate v. t. [imp. & p. p. Defalcated; p. pr. & vb. n. Defalcating.]  To cut off; to take away or deduct a part of; -- used chiefly of money, accounts, rents, income, etc.
    To show what may be practicably and safely defalcated from them [the estimates].   --Burke.