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■ "In connection with the public debt there is now an increasing number of major transactions every year, but the year just closed has been exceptional in this respect," said the Minister of Finance, Mr. Nash, in his Budget statement. "The new issues during the year amounted to £65,777,000, and re-

demptions to £29,033,000, a net in- i crease of £36,744,000. This has had the effect of increasing the total debt outstanding from £566,494,000; at March 31, 1944, to £603,238,000 at March 31, 1945. When, however, it is remembered that our war. loans for the year totalled over £54,00,000, i including borrowing overseas under j the Memorandum of Security Agree- j ment, and that the National Development Loan was slightly over! £11,000,000, the net increase of i £30,744,000 is considerably less than might have been expected. This is due to the substantial amount utilised for redemption purposes during the year." | These moneys, he said, had been made available from the following | accounts: — ' Public Debt Repayment Account .... £3,974,000 War Expenses Account . . £6,250,000 Loans Redemption Account, including special sinking funds £18,808.000 Total redemptions £29,033,000 Mr Nash said that with the excep- i tion of £18,900,000, the whole of the increase (£218,750,000) in war debt. was due for repayment in New Zea- < land. "External borrowing places on posterity the burden of providing ex- j portable produce to meet annual i interest charges and principal repay- i ments. Internal debt, on the other hand, is repayable to the people of. New Zealand by the people of New Zealand. "The economic effects depend upon who pays the taxes and who receives the interest. The more widely the investments in public loans are : spread over the whole community and the gveater the degree to which ! the interest-receiving coincides with the tax-paying public, the less disturbing and the less burdensome is the public indebtedness. In New Zealand, war loan investments are very widely distributed." i


VAIiUE TO N.Z. ECONOMY Parliamentary Reporter. WELLINGTON, this day. "I must mention again, not only in relation to the 1945 Victory. Loan, but also both from the national as well as the individual point of view, the great value to our internal economy resulting from National Savings;" | said Mr. Nash in his Financial Statement. "From a small but sound beginning, investments in National Savings bonds and accounts have grown steadily until on March 31,1 1945, £31,442,088 was Invested in these securities. As much of this sum represents spending power diverted from civilian to war production, the impetus given to our war effort is obvious, and the value to economic stability, intestimable. "I would emphasise, however, that the need for restricted spending still exists."

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Bibliographic details

PUBLIC DEBT, Auckland Star, Volume LXXVI, Issue 188, 10 August 1945

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PUBLIC DEBT Auckland Star, Volume LXXVI, Issue 188, 10 August 1945

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