Govt Budgets For Rise In Expenditure Of 8.8%

Press, Issue 32333, 26 June 1970, Page 14

Govt Budgets For Rise In Expenditure Of 8.8%

The Government has budgeted for a total expenditure of $lBl Im in 1970-71—5147 m, or 8.8 per cent, more than in 1969-70.1,a5t year’s increase was 7.6 per cent.

Social services (up ss7m) and debt services (up s22m), together with a s2om increase in the vote for the development of agriculture, account for most of the sl24m increase in the Consolidated Revenue Account. The Estimates tabled in the House of Representatives last evening show that education, health, social security and war and other pension spend-

ling this year will require! s7slm, compared with the s7o7m spent last year. Debt services will require s2o4m compared with slBsm spent last year, interest comprising sls3m (sl44m). Provision for loan repayment is unchanged at s4om. The defence vote is s96m compared with last year’s expenditure of sB9m, general administration s3Bm (s3sm), development of primary and secondary industries slo3m ($81m). In the Agriculture estimates, financial assistance to primary industries is shown

las s26m (s9m spent last year). The main increase in the defence vote is in the deployment of forces overseas: s36m compared with s3lm spent last year. The education vote is up by s22m to s2l2m, the increase being fairly evenly spread over the divisions, with the university division up from s2sm to s29m. This year s3om is proposed for buildings, land, furniture and equipment, compared with a vote of s2Bm last year. The university research grant is un from $500,000 last year to $550,000. The Foreign Affairs vote of slsm is 2.4 per cent up on last year’s expenditure, mainly because of increases in salaries and allowances and operating costs. The main economic aid figure is again s4m to the Colombo Plan. Much of the increase of $115,000 in the maintenance of grounds and buildings figure is for maintenance on New Zealand House, estimated at $82,000.

In the health vote, $BO,OOO has been allocated as subsidy assistance for youth hostels ($6OOO last year). The main vote increase is under hospital services, up sl3m on last year’s expenditure. Most of the increase is in the grants, contributions and subsidies sector, which includes $432,000 provision for rubella vaccine. The Industries and Commerce vote of ssm includes

islm for New Zealand participation at Expo 70 (sl.4m last year). In the Internal Affairs vote, $250,000 is set down to pay for the Royal Tour in March, $39,000 having been spent last year. The Justice Department vote is down from $11.9m spent last year to $11.5m largely because of the transfer of the $332,000 Security Intelligence Service vote to a separate category under annual appropriations. The other major factor is that $814,553 was spent on the general election and licensing poll last year, whereas only $ll,OOO is voted for elections this year. In the telecommunications development section of the Post Office account, sl.sm is set aside for the cost of a satellite earth station and New Zealand’s share of the cost of the global system: last year $293,000 was spent on this.

The public buildings vote is $16.8m ($14.2m spent last year) with major increases in provisions being $3.5m for mental hospitals ($2.7m voted last year), sl.sm for police stations and houses (sl.lm voted last year), and $600,000 for courthouses ($450,000). Of the total, $11.2m is to meet expenditure on works under construction. In the railways construction vote, s4m is allocated for the Kaimai Deviation, compared with the sl.sm spent last year.