17.4 p.c. rise in Govt spending estimated

Press, Volume CXIII, Issue 33252, 15 June 1973, Page 2

17.4 p.c. rise in Govt spending estimated

Net expenditure of $2605m, 17.4 per cent more than was spent in the 1972-73 year, has been budgeted for by the Government. The increase last vear was 15.7 ner cent.

V. The $2605m includes provision of Sl2om for supplementary estimates, hut does not include $452.1m expenditure under permanent legislative authority ($406.6m voted last year).

The Estimates, tabled in the House of Representatives last evening, show increases in most votes compared with both las t year’s votes, and last year’s expenditure. Most departmental votes make provision for increases in staff ceilings. The police estimate, for example, shows a 1973-74 staff ceiling of 4305, compared with the present ceiling of 4051. Some votes have been increased this year by the inclusion in department votes, rather than the works vote, of expenditure for the maintenance of Governmentowned buildings and the construction of public buildings. The largest increases are in the votes for social welfare—

I monetary benefits and war ..pensions are up s92m. or nearly 20 per cent — and in ’ (those for education, foreign affiairs, health, internal i affairs, and economic (stabilisation (subsidies). The total vote for social welfare is un from last year’s i5489.4m ($509.5m spent) to (ssB3m, the increase being ' I concentrated in the vote for monetary benefits and special annuities. ’ The Estimates also say that * a review of certain eligibility J conditions and other conces- ‘ sions for various benefits is expected to be completed dur- ‘ ing the year. The education vote is ’ $409.2m, compared with the ’ $378.7m voted ($379.3m . spent) last year. The largest . percentage increase is in the area of pre-school education i in which the vote is increased . from s2.Bm to s3.Bm. The

vote for primary and secondary education is up from $249.9m to $264.3m, and that 'for higher education from I $115.5m to $129.9m. Assist'ance to private schools in;creases from s7m to $7.5m. r The Foreign Affairs vote r jhas been increased from last n ; year’s s23m to $39. Im; most n|of the increase of $16.6m is j(attributable to increases in ci the vote for assistance pro(grammes (up sB.2m) and the I'inclusion of s6m for office and presidential accommodation 3 previously voted under works. New item H A new item 'under the multilateral aid is slm for an t Indo-China aid fund, and y $BO,OOO is voted for new . multilateral programmes, s New Zealand’s share of the •- United Nations budget is down from $474,000 to s | $452,000. el The Health Department i vote is up from $337.2m to t|s3BB.9m, with major increases Blunder the headings of rnedii cal research (to $2.3m from j:sl.3m), hospital services (to j. $267.6m from $239.9m), medi(cal services and drug control I (to $74.2m from $62.4m), (public health and environ;mental protection (to $10.3m (from $7.3m) and welfare services (to slo.lm from $6.7m). To assist hospital boards to (establish health centres, as a (matter of priority, ssm is to be made available to boards by special grants. In 1973-74, $500,000 is voted for this. The health vote is inflated by the inclusion of some building works costs formerly listed in the works vote. The $3.5m budgeted for flats and units for the elderly compares with last year’s sl.sm and the vote for old neople’s homes and hosnitals is up from $4. Im to $5.6m. Grants for Karitane hospitals are up from $192,000 to $253,000; the grant to the Salvation Army for the treatment of alcoholism is up from $50,000 to $75,000.

Rebates and grants The Internal Affairs vote is up from sll.Bm to $20.6m, and includes two major new items: s4m for rates rebates, and s3m for grants, contributions and subsidies to recreation and sport. The vote for other subsidies, including food, is more than doubled, from $35. Im to $78.7m. This vote includes several new items: provision for subsidies of s7m for meat, s2m for sugar, slom for wool ($3.3m was paid last year as unauthorised expenditure),

■ slom towards the losses of i the Post Office, and s6.Bm to- . wards the losses of the Rail- ' ways Department. ■i The vote for bread subsidies is increased from sl.sm ■(to $3.3m. Not all subsidies are in- ! I creased: the agriculture vote 1 1—now agriculture and 11 fisheries—shows the vote for 5 weedicide and pesticide sub--1 (sidles cut from ssm to sl.sm, ■|and the fertiliser price sub- ‘ | sidy cut from slsm to '1512.2m. The fertiliser trans--1 (port subsidy vote is also down • (slightly, and the fertiliser and lime aerial application sub(sidy vote is down from , $700,000 to $300,000. J The vote for financial assisI tance to primary industry is , down from $62.6m to $41.1m. Agriculture grants are up J from $945,655 to sl.4m with ; the biggest increase in the ’ provision for the Dairy Products Development Centre. The increased Post Office ■ vote includes an additional J allowance for telecommunica- ’ tions services, up from last. ' year’s sll6m to sl24m. There ' is provision for new telephone 1 exchanges, the conversion of : many country exchanges to automatic operation, and for ’ the development of toll and telex services. 1 The Department of Scien- ' tific and Industrial Research ■ vote includes a grant of 1 $lO,OOO for a scanning elect--1 ron microscope for the Uni- ( versity of Canterbury, and ’ provides for staff increases ’ in fresh-water and pollution research and ecological 1 studies.