Govt spending set to rise 9.17 p.c.

Press, 9 November 1984, Page 3

Govt spending set to rise 9.17 p.c.

BUDGET

Government expenditure: for the 1984-85 financial year is expected to rise 9.17 per cent to a total of $15,556.3 million.

The Government expects to get $11,820 million of its revenue from taxation, an increase of 13.3 per cent on last year’s tax revenue. Included in the taxation increase is 12.4 per cent increase from income tax.

Interest payments for Government borrowing in New Zealand and overseas have increased 28.5 per cent to $2590 million. Interest Sale in New Zealand is million compared with $930 million overseas. One of the biggest increases is in Post Office spending where allowance has been made for an increase in spending of 35.1 per cent to $1352.8 million. Much of the increase will later be returned to Government coffers. A $99 million payment will be made in lieu of taxation and a $62 million dividend will also be paid. Another $89.6 million will be spent on telecommunications development. The Defence budget has risen almost 15 per cent. Of the increase, $100.7 million will be taken up by capital expenditure on aircraft and other equipment, an increase of 97 per cent on last year. Rural Bank lending to primary industries will again be cut this year, dropping $66 million to $175 million. The $lO million spent on stock redemption last year has been cut. Most of the 10.4 per cent increase in Social Welfare

spending will be taken up by; benefits, pensions and superannuation, and social work services.

Almost $397 million more will be spent on benefits, bringing the total to $4226 million. Social work spending will rise $12.7 million, an increase of 14.4 per cent. Although Forestry spending will increase 41 per cent to $397 million, this will be partially offset by estimates receipts of $147 million. The biggest rise in spending will be in forestry protection, planning and development, which will be increased $B6 million to $lOB million.

The main receipts will come from production management and sawmilling, which are up 10.2 per cent to $145 million. Agriculture and Fisheries spending has been cut 18.7 per cent. A reduction in the supplementary minimum price scheme for wool accounts for most of the decrease. It has dropped 62 per cent to $BO million. S.M.P.S for meat are up 46 per cent on last year’s budgeted figure which was overspent by $122.5 million. This year’s estimated expenditure of $254 million is down 14.4 per cent on what was spent last year. The consumer milk subsidy has been transferred from the economic stabilisation vote to the Ministry of Agriculture vote and has

more than doubled from $9.2 million to $l9 million. Energy spending has been cut 16.7 per cent, taking it from $545.8 million to $454.6 million. A big decrease is in the area of oil and gas policy administration. In the Ministry’s current trading year, it expects to have a $179.5 million surplus in electricity. Although the income from electricity is expected to rise $45 million, total expenses will increase $B5 million.

The Ministry expects to lose $37.6 million from State Coal Mines.

The Labour Department vote will increase 14.4 per cent, taking it to $449.9 million. The employment and training budget is increased 17.4 per cent and a similar-sized increase is shown in the immigration budget The Justice Department vote is increased 16 per cent to $157.6 million. The expense of the General Election in July has brought an 860 per cent increase to the electoral allocation, taking it from $641,000 to $5.5 million.

There is a 30 per cent increase in the amount allocated to capital works in the penal and court areas. This amount has increased from $8.6 million to $ll.l million.

The Tourism and Publicity budget has increased

15.5 per cent, from $26 million to $3O million. The budget for travel, transport, and communications for tourism promotion increases 32.5 per cent to $1 million. Capital expenditure increases from $4OOO to $13,000. The travel service budget also increases 60 per cent 'to $6.3 million.

The Internal Affairs vote has increased 13.7 per cent to $7B million. The allocation for services to the Government has decreased 9 per cent to $8.6 million. Translation service expenditure has increased 17.3 per cent to $278,000. The Civil Defence allocation has increased 37.6 per cent to $3.6 million. Much of this increase is attributable to a $1 million contribution by the Government to the Southland Flood Relief Fund.

Fire Services administration has been included in the. Internal Affairs vote with an allocation of $4 million. This money did not come from the Internal Affairs budget last year. An increase of $2O million in the cost of running the overseas service is the main reason for a 14.3 per cent increase in the Foreign Affairs vote. The Ministry will spend $199.8 million this year.

Official development, assistance, and aid to other countries will increase $3.7 million to $85.5 million, a rise of 4.5 per cent.

Contributions to international organisations will increase 48 per cent to $8.2 million.