THE EFFECT OF THE WAR

Dominion, Volume 8, Issue 2551, 27 August 1915, Page 4

THE EFFECT OF THE WAR

FALLING REVENUE THE NEED FOR ECONOMY I now have to submit tlio position of the Ordinary Revenue Account for tho first four mouths of tlio present financial year ended July 31. ultimo. There lias by comparison with_ tho corresponding period for the previous year been 'an increase of expenditure in all tho annual appropriations except three, the increases amounting to £303,889, and the decreases to £73,696. The effect of the_ war has had much to dj with the position disclosed. It must be apparent that such a heavy increase for tho four months referred to clearly demonstrates that the times through which we are passing have adversely affected tho various. Depart-, ments, and that an adjustment, must be made to ensure, that these Departments are placed in. such a position that the revenuo will exceed tho expenditure. It will also be absolutely necessary for all Departments that are not of ft trading nature to bo considerably restricted so far as expansion of service is concerned in order that a closer relation to the financial needs of tlio country may be maintained. " More Treasury Bills. I think it only right to say that the result of the four months' financial operations of the present year gives tlio Government some concern, showing as it does an increaso of expenditure over receipts for that period of £307,982 and an increase of £350,000 of Treasury bills in comparison with tho corresponding period of last year. I now' submit a Treasury statement showing approximately tho expected position of the Consolidated Fund for tho three months ending October 31 next. It estimates a deficiency of £289,000, the accountant—rightly, in my judgment—stating, however,, that it "is difficult to estimate tho revenue owing to possible decreases." With this I agree; and while I tliink the balance of available Treasury bills may prove to bo adequate to meet any contingencies that may arise, still I am of opinion that as a precautionary measure it would be prudent to have authority to increase tho Treasury bills for uso either in Now Zealand or England, and 1 will submit proposals to that effect. It is unnecessary for me ti inform honourablo members that until the Empire is at peace again, and before tho extra revenue from the alterations 1 am submitting is realised, circumstances may conceivably arise that would call for the temporary use of a larger issue of Treasury bills t'han , tlio maximum amount now. available,

ll normal times nothing approaching tho present amount would be needed. The increased facilities for inward steam tonnage should materially liclp both tho Customs and railway revenue, as it will result in increased imports, and, indeed, increa-sed internal trade throughout the Dominion generally. An Estimate of the Position. The following is tho estimate of the pesition of tho Consolidated Fund" for tlie three months ending October 31 next: — £ £ Cash, August 1 ..... 140,000 Estimated receipts: Revenue, Aug. 1 to October 31 .... 2,643,000 Tiansfer from War Expenses Account charged to Unauthorised 78,000 — 2,861,000 Estimated expenditure, Aug. 1 to October 31 3,150,000 Deficienoy 289,000 The expenditure is based on the figures for the corresponding -period of last year, iwith tho addition of £50,000 for interest on the war loans. It is specially _ difficult to estimate the revenue owing to circumstancos which I have already explained. £ We have authority to' issue Treasury bills ~ 2,000,000 And have issued 1,200,000 Leaving. 800,000 Estimated Revenue and Expenditure. The revenue for the year 1915-16, estimated on t'li6 basis of tlie existing statutory limitations, i 3 as follows:— £ Customs 2,800,000 Railways 4,000,000 Stamp and Death Duties 1,220,200 Postal and Telegraph 1,345,000 Land-tax 790,000 Income-tax 525,000 Beer Duty. 124,000 Registration and other Tees 100,000 Marine 50,400 Miscellaneous 419,000 Territorial Revenue 210,000 Endowment Revenue 92,054 Total £11,676,254 The following figures will show the ways and means of tho Consolidated Fund for the year 1915-16, estimating the revonue on tho foregoing basis: — £ Balance forward from 1914-15 149,047 Estimated revenue, 1915-10 11,676,254 11,825,301 Estimated expenditure, ISIS- - ;.. 12,653,242 Deficienoy (without, provision for war pensions, in-terest-and sinking fund on war loans, additions.to superannuation funds, and supplementary estimates) £827,941 • A Comparison. The following oxplains the difference between the Estimated • Revenue for 1915-16 and the Actual Revenue received for 1914-15: — Estimated Aotual 1915-16. 1914-15. & £ Customs 2,800,000 3,167,283 Railways 4,000,000 4,106,675 Stamp and Death ■ Duties 1,220,200 1,417,207 ■ Post and Telegraph 1,345,000 1,353,443 ; Land-tax 790,000 799,641 . Income-tax 525,000 540,318 Beer Duty .'. 124,000 127,660 Registration and other Fees ...... 100,000 101,020 Marine 50,400 50,387 . Miscellaneous ...... 419,000 461,498 [ Territorial Revenue 210,000 239,623 . Endowment Reve- r , nue; 92,654' 78,770 i Totals ...... 11,676,254-12,443,525 i An estimated fall in revenue of| . £767,271.