THE PUBLIC ACCOUNTS.

Press, Volume LVIII, Issue 17451, 11 May 1922, Page 7

THE PUBLIC ACCOUNTS.

RESULT OF YEAR'S OPERATIONS.

EFFECT OF CUSTOMS REVENUE.

BIG DROP IN BATE OF

EXPENDITURE,

(special to "the press.") FEILDIXG, May 10. , The Prime Minister in. a speech here to-night announced that during the financial year ended March 31st last the ordinary ren-enue amounted tp £28.127,007, and the expenditure totalled £28,106,838, the excess of expenditure over revenue amounting to £339,831. The cash balance carried .forward on March 31st, 1921, included excess Customs revenue amounting to £2,409,251. This money, as stated at the time bv the Treasury, would have come to account in later years in ordinary circumstances. If it was included in the revenue for the "i 921-22 financial year there was still a "Taiance of £2,069,420 to be carried forward. A statement showing the disposal of the accumulated surplus revenue disclosed that the balance on March 31st 1922 was £7,531,367. The policy of retrenchment began, to have effect in the later months of the financial year. The expenditure for the March quarter showed a decrease of £968,019, as compared witli tho expenditure for the corresponding quarter of 1921. The Public Works expenditure for the year was exceptionally heavy, amounting to £5,350,75)0, or £2,210,216 in excess of the expenditure for 1920-21. The ordinary revenue of the Consolidated Fund for the financial year ended March 31st, 1922, amounted to £28,127,007, and was £127,007 in excess of the estimate, but when compared with the revenue for the preceding year, it showed a net decrease of £6,133,954. The principal decreases were:— & Customs (largely due to over importations in the previous year) ... 3,313,290 Stamp and' Death Duties ... 801,398 Land Tax ... Income Tax Railways ... ••• 235,250 Miscellaneous ... ••• 174,507 The increases were £ Post and Telegraph ... Beer Duty . ••• 98,373 The expenditure under the permanent and annual appropriations amounted to £28,466,853/ being £339,831 in excess of the revenue collected during the year, but £886,516 less than the amount appropriated by Parliament, in connexion with which it should be remembered that the original estimates at the instance of the Minister of Finance were reduced By the Public Accounts Committee by £260,116. The principal increases in expenditure, as compared with the preceding | year, were:— •/%

Permanent Charges, Interest, Sinking Fund, etc. ... Working Hallways ... ... 'Police ... •••' Department of Health ... .. Naval Defence • ••".'■ 2B4»®£* Customs ... ••• ••• 11 >971 Education ... ••• ••• 120,446

The decreases in expenditure .totalled £978,715, and were well distributed throughout the different votes, the most important being:— £ Post and Telegraph (working expenses) ••• 139,672 Public Buildings ... ... 45,408 Native, Department ... ... 13,051 Industries, and Commerce ... 133,612 Internal Affairs ... 207,235 Printing and Stationery ... 36|972 Defence ... ... 115,692 Mariuo ... ... ... 15,842 Lands and Survey ... „ ... 76,870 Valuation •..." ... ... 15,474 Agriculture ••• ... 15,624 Services not provided for ... 103,358 Satisfactory Besults. "Tha readjustment of the financial situation has proceeded slowly, as was anticipated,"' said the Prime Minister, "but the result of the year's operations indicates the trend of business events,' and that the difficulty created by dverimportation has been satisfactorily adjusted. The improvement in the prices obtained for our products is encouraging. Nevertheless, the drop in valiles has had a marked effect upon our revenue," although the estimate has been exceeded. Last year's Budget stressed the fact that, included in the cash balance carried forward was an excess, of Customs revenue amounting to £2,409,251, which under normal conditions would have come to account during later financial jrears. It was then announced "that, pending adjustment, the revenue would be supplemented by applying a portion of tne surplus towards maintaining a balance, and that special measures were being adopted to adjust expenditure to the altered conditions. On the whole, the results for the year-are satisfactory, particularly when the expenditure of the last quarter is compared with that of tho previous' year, * as follows: ■' ■ March quarter, 1921 ... 7,688,468 Mafrch quarter, 1922 •, ... 6,731,449 Decrease in expenditure ... 908,019 ' 'This decrease is. being well distributed among votes, most noticeable l|e■ing; - - ' £ V Railways ... .... 673,685 Post and Telegraph ■■■ 145,792 Public Buildings 87,801 Maintenance of Roads ••• 20,977 Industries and Commerce ... 12®,'9* Internal Affairs ... ••• Printing and Stationery j Marine ... ... I Lands and Survey ... Valuation ... - 13,059. Agriculture ... ••• j Tourist and Health Resorts... 10,360 Education ... * . ... -• Services not provided for •••• • loy,<w 'The increased expenditure under other appropriations amounts to £1350,000, including interest, etc., £250,000 Annual Expenditure Must Be Beduced. "From these figures it may be deduced that the effect of the-economies introduced by the Government w beginning to be Mi, and ifthestocksofcoal for Which large expenditure had to teniet bv the Railway the year : are; token into •cwmt, _^d due allowaiic®. is .made fo<r the^emplua Customs avenue, the. apparont defi-it becomes a substantial f safe finance requires u balanced and annual expenditure must f un£* reduced if it'» to be kept w.th.n the revenue, K!- t hope of relief to.th® toxpayer. The Prime-Minister lowing" statement of . the enue account, showing the tthe year's operations :■ £ « ' • 4 „ 28,072,275 Receipts 'nAao Recoveries,,. Total rovenue. ... £28,12j r ,OO/ 28,466,838 Lxpendituro v;;' '. Excess of expenditure • pver reveiiuo »•

OTHER PAYMENTS. Discharged Soldieiv .Set clement Loans Act. 1920, depreciation fuud account ... ' 50,CO'J Lo;;ns .redemption account otiO.Oll Sinking funds - set free ... 1.289 Total ... ... .81,300 Grand total ... £1,121,131 ''To make the position of the ordinary revenue account clear, the excess of Customs revenue for 1920-21, which was c-.irried forward in the ca-sh balance o' April Ist, 1921, should l>e added to tho revenue for the year 1921-22 as under: £ Revenue ... ... 28,127,00; Excess Customs duty carried forward ... ... 2,409,251 Total ... ... £30,536,153 Expenditure ... £2B,4 J oo.y3S Leaving balance carried forward as part of cash balance .. ... £2,0(38,420 '"As a result of the heavy expenditure for coal during the year* an aa ; et in the shape of a reserve stock valued at £450,000 is held. Tho expenditure on public works during the year has been exceptionally heavy, amounting in all to £5,300,790, or £2,5410,216 in excess of that for 1920-21. Treasury Bills. "As a large portion of our revenue, especially the land and income tax. did not come in until towards the end of the iiiiLLiicial year, ' continued the Prime Minister, "special arrangements had to be made to meet current requirements when the expenditure was iu. excess of the receipts. During the year just ended Tieasiiry bills amounting in the aggregate to £1,155,453, uere issued in anticipation of loan moneys and ordinary revenue, upon receipt of which they were duly redeemed. Xo Treasury bills were outstanding at March 31st, nor have any been issued since, although it will probably be necessary as usual to anticipate receipts in this manner before March 31st next. The rates of interest varied from 3J to 5 per cent. The u?e of Treasury bills in preference to the sale of certain securities held by the different investment nccounts resulted in a considerable saving. For example, Imperial 5 per cent, stocks purchased at £25 was quoted at a discount at the time the bills were floated, but increased in value, and is now quoted at a fraction over £100." The Prime Minister added the following statement showing > how the accumulated surolUses have" been disposed of- , £ Accumulated surplusee at March 31st, 1920 ... 17,533,977 Add surplus for financial year, 1920-21 6,132,232 Total accumulated surplus 23,(371,209 TRANSFERS. To discharged soldiers' settlement account: £ 1920-21 13,330,000 1921-22 ... ... 170,000 Total ... ... £13,500,000 To discharged soldiers' settlement depreciation fund • account : £ 19?0-21 50,000 1921-22 50,000 Total ... ... 100,000 To Public Works fund: 1920-21 £500,000 To Reserve Fund securities account: 1920-21 ... ' ... £1,200,000 To loans redemption (war loan certificates) : 1921-22 ... ... £560,011 To balance revenue and expenditure: 1921-22 £273,831 Total .... ... £16,139,842 . Balance at March 31st, •1922 ... £7,631,367