THE DOMINION'S FINANCES.

Press, Volume LI, Issue 15268, 3 May 1915, Page 7

THE DOMINION'S FINANCES.

IMPORTANT STATEMENT BY

THE MINISTER

SURPLUS FOP. THE YEAR. £147.139

THE EFFECT OF THE WAR ON THE PvEVEXUE.

(PBKSS ASSOCIATION TELEGEAM.) DUXEDIX, May 'J

•'I had it in my mind to make a .mcA on the >übjcrc «f finance, and ' state the position of tho Dominion Z tho end of tho financial yoar, but, ** consideration. I determined not to A so and I now make a statement to £ Fra instead/ This remark was . Sdwsscd by the Hon. James Allen Minister of Finance, to a ."Daily Times" reporter on >nt,mlay night. The Minister wont nn to say: — rirst of all I wish to deal with the Consolidated Fund, which is ordinary ro- ' Trenuc and expenditure for tho year, and does not include loan moneys, nor docs rercnue now inclndo moneys dc- " rived from tho proceeds of sales oi land, cither for cash direct or on tho ■'-deferred payment, f-ystem. There is no- ■ thing in tho levenuo now as far as land ' i s concerned, except rents from pns- • ' toral runs, other rents, and miscellan--"cons revenue. ' THE YEAR'S CREDIT BALANCE. Tho total revenue for tho year • amounted, to £13,133.100, approximately. There may l>o some slight variations, a, s the figures I am stating nniv have not yet been audited. The total expenditure for the year was £12,Gfe0,----g<3l leaving a balance at the end of the*year of £117.130. This balance h the result, after paying oif all Treasury • bilk in existence at .March 31>t, and after transferring 1*350.1)00 to the P"b- ---" lie Works Fund, the full amount that • tho Government stated it would so transfer. THE FIGURES EXPLAINED. It will place tho position in a clearer light before the public if 1 put tho figure* in this way :—The revenue Tor tho year onded March 31st last includes C-126,900, balance brought for- . ward from last year, and £12,4-13,020 of ordinary revenue. Tfio ordinary revenue shows an increase over the ordinary revenue of tho preceding year of £219,180. The ordinary expenditure fo-- tho year—that i» to say. permanent ' appropriations and tho annual appropriations—amounts to £12.381,711. Tho ■-total receipts and expenditure which_l gave, first of all. include sinking funds act freo to redeem, debentures, and recoveries on account of previous years. Tho sinking funds set freo wcro useu to pay off loans which became duo on ._ July "loth, 191-I,'"and January 2ud, 191G, to an amount equal to tho sinking funds sot free. THE EFFECT OF THE WAR. With regard to the receipts, tho effect of tho Avar shows itself chiefly in connexion with Cusjtonis rovenuo arill - railway revenue. The Customs revenue -1 is £209,4G0 less than that of last year, and the, railway revenue, though it ex- - roods that of last year by nearly £78,000, is short of tho estimate for tho j-ear by £143,320. As I havo said, theso two shortage* aro mainly due, as- ,- ---_ -far as one can judge, to-the. effects of "' tho war. Fortnnatoly, from tho point of view of the Financo Minister, tne ;- receipts from stamps ami; death duties Jbaye exceeded those of last year by - about £190,000. Tho duties on several large estates came in for payment dur- - ing the year, and these aro responsible lor tho greater part of' tho increase. '* JThe Post and Telegraph revenue has exceeded that of last year by something - like £96,000, .and this may be looked . upon as a lcgitiniato incrcaso for tTio year. EXPENDITURE INCREASES. " On the expenditure side, on account of permanent appropriations, tho increase for this year over last year is approximately £271,000. Tho increase ' -in interest mid sinking funds amounts ." to about £18.3,000, and included iv tJui interest and sinking funds pay- _ meat is the interest for as much of the war loan ,as carried interest up to the end of tho financial year. Old " "*g& pensions show an increase for tho of £42,207. widows' pensions an - increase of £4537, and military penr sions an inrreasp of £18,000. I do " net presumo that criticism will bo r levelled against these increases in tho expenditure. DEPARTMENTALFIGURES. -~ Tho Post and Telegraph Departments . wereaso in exnenditnre amounts to *ome £74,000, but it ha s been- already pointed out that the increase in the i revenue of this Department exceeds this sum. Tho Justice Department . enows an inereaso in expenditure of about £22,700. but this Jias been largely <roe to increases provided in tho -pay of the police and others belonging to ..tins Department. The Department of Internal Affairs shows an increase in | . <wpendituro of close on £33,000. mostly ~ due to tho general election. The Education Department shows an increase in - "expenditure of £70,000. Tho alteration , ; . made in the law last year and tho • natural. increase in the expenditure i Upon education account for this. '. , A SATISFACTORY POSITION. j - 1 have already pointed out that tho ** • ?V?- * or - tho year amounts to >• ~«*,13f1, but in order to make tho i- J finance clear to the public, I <~-" hvi * to-state that tho years receipts ; > ,wxl expenditure, apart altogether from f? y . oalanco brought forward, show . taat tho reeeints havo exceeded tho by'about £70,234. I can.i* 2* bTlt think that under tho circum- • ; yMcce this is n fiatisfactory position. ;. As regards the Pnblic Works Fund, \\** not * n . A P 055^0 " to-night to givo •' " W but I am pleased to Cα "?'*ole to confirm what I have many ,- Tmu» stated to the miblic: That not «ily was New Zealand" in a strong posi- " -•, M>o ** f ar as its borrowed money>s wero - jwcerned when the war broke, out, but ~ ili* ,, * a strong position to-day. Foralso, tho Post Office "Savings • 7*** enows very satisfactory results, «»»r as.excess of deposits over with™wa|s is concerned." I do not pro- £** to-nigh* to go into details of this -. ?*? of deposits, and I only say that *J«S contu:ll ies, it will give material '" nco m tho w °y of provision for * mv Public works and advances "• *ew Zealand. • ' THE RECENT LOAN. ' - t*3«j ° nlj V loan money that- has been [ ■ Sm! t ,! ? is £200,000 (about ' ia«T V l^'0 already given information r" - it* X rress ) was raised recently >£--$»+ • P ur P°se of paying off a loan • W«J? and I feel it must ?: , iS;^ 611161 ? gratifying to New Zea- -■" '*t£kA ¥*.?***** that this loan was I '2SJ, * \T - mc oC 4 - nor cent - i,er , ,s a 6tock ] duo in 'f-s? 4e'w. iho -iinual cost to E'*v of ii{c« try, including redemption, r^'im^^h^ l otho '- charges, will fe-'i-ffß* \ £i 10s 5d ncr cent. That ■ ! "''IW I •" ill - 10 *° rais(> cvon this a m tin lo ua auxdi coni-

paratirely favourable terms, must bo | pleasing to the- people. PUBLIC WORKS. Provision has been made to carry on public works at something like tho rate that they have been carried on for at least tho next six months, and should favourable opportunities occur on the London market to still further strengthen our finance and enable us to look further ahead than six months, these opportunities will not be neglected, but wo are in the fortunate position that wo can to a certain extent select our time, and wait for these favourablo opportunities. STATE ADVANCES DEPARTMENTS. As Tegards tho State Advances Departments, I have very great pleasure in 6t,-itin;4 that they are in a strong position. They have boon during tho course of this Government's term or offico brought into this strong pobition, and had it not been for tho war, and the necessity arising from the war, to ; carefully conserve tho finance of the country, tho Government would have continued to advance up to the tu' l amount allowed by law. '1 his tno l I°" vcrnment were doing immediately prior to tbo war breaking out. but wo deemled it prudent not to advance up to tho full amount allowed by law until we could sco where we .stood. At tho present time we- are advancing to se■.tiers £1000. to local authorities -L2OOO. and to eettlers and workers for tlio huildinc of homes £400. I Joel justified, after a enreful review of t'?,™ -.itulation. as it exists to-day, i" imorimnc tbf> Board that finance will be available for it io the amount available for workers' homo? up to tho maximum allowed by law. namely £4-"X). Similarly, in r<-:a'-d to the amount available fo>- homos u.r settlers, the H"Mt may now ho raised from £400 to £400. MON-KY FOR JfOHTfJ.XfiKS. The Mortgages Extension A<-t is still in existence, but I deem it advisable to provide money for tho Board to deal with mortgages that are coming duo up to ii limited extent. 1 think id will bo I safo for tho Board to open tho door and provide money for mortgages coming due up to £450. ADVANCES TO SETTLERS AND WORKERS. I think it right that tho country should know that, even with tho limitations with reuard to advances which, it was deemed advisablo to impose, when tho war oroke out. «i -considerable uniount of business has been done. In the case of tho advances to settlers, tne total actual amounts paid over in VJio are as follows: — January ... , } Kebruarv ... 07,13-i March " ... U3.910 "\\ith regard to advances to workers, for trie sarao period, £he amounts aro a≤ follows: — January ... 15,830 Februaiv ... 18,370 March * ... 27.455 This gradual progress mouth by month will no doubt bo continued, oven if the Government do not raise tho limits at present imposed, but with the increase of limits which I have alrea3y indicated, i .prosumo that tho progress month by month will bo still more rapid till a stable condition is reached. ADVANCES TO LOCAL BODIES. As for advances to local bodies, the amounts paid over also show progression. They were as under:— £ January ... 27,850 February ... 32,98"> March ... 37,155 I do not at present sco my way to provide money to increase the amount to local bodies, but tho finances of tho country will be carefully watched, and if it is considered safe ■to provido means, the Government will not neglect to do so. The balance at the end of tho year, though not large, is a perfectly leeitimate one. Tho instructions io tho Treasury wero to clear off all vouchers at tho end of the year, and I am advised that those instructions havo been carried out.