£29m Increase In Govt. Costs Since 1911

Press, Volume C, Issue 29626, 23 September 1961, Page 13

£29m Increase In Govt. Costs Since 1911

(New Zealand Press Association)

WELLINGTON, Sept. 22. The annual. cost of Government administration had increased by a total of £29 million in the last 50 years, the Deputy-Secretary of the Treasury (Mr A. B. Taylor) said. For the year 1911-12 the cost of administration was £1,400,000 and for the year 1900-61 was £30,400,000, according to a table of comparative gross Government expenditure he presented to the Royal Commission on State Services.

In the same 50-year period Government expenditure on national development increased from £3,300,000 to £ 106,300,000 and development of industry (primary and secondary) from £1,890,000 to £22,200,000. Gross expenditure on social services (including subsidies) also increased during the period. In 1911-12

the expenditure was £1,600.000 and in 1960-61 it was £218,600.000.

Many factors had contributed to the growth of public expenditure during the 50-year period and in the revenue which had been required to support it, said Mr Taylor. “Part of this increase has resulted from an increased population and a decline in money values, with associated higher costs, but the main growth in expenditure has been influenced by changes in social and political policy over the years,” he said.

These additional Government responsibilities had necessitated a corresponding increase in the administrative services both in central departments and in those departments or agencies charged with implementing new or expanded services, said Mr Taylor. In general the system of control over expenditure was adequate and it ensured, broadly, that when totals of expenditure were approved by toe Government they would not be exceeded.

“However, some improvements are possible,” said Mr Taylor. “It is hoped that in future greater financial authority can be delegated to departments.” Through the system of accounting now being developed it should also be possible to improve control of expenditure by making information concerning expenditure under votes more promptly available.