WAR EXPENDITURE

Dominion, Volume 36, Issue 111, 4 February 1943, Page 4

WAR EXPENDITURE

£174,643,000 To End Of Last Year NEARLY HALF FROM TAXATION (By Telegraph.—• Praaa Association.) CHRISTCHURCH, February 3. Details of New Zealand’s war expenditure were given today by the Prime Minister, Mr. Fraser. War expenses to the end of last year totalled £174,643,000, including imprests (expenditure not yet brought to charge or allocated) amounting to £12,833,000. Expenditure on the Army totalled £92,114,000, the Navy £11,524,000, the Air Force £32,834,000, and Civil (including reverse lend-lease) £25,038,000. Receipts for the same period amounted to £174,643,000, the principal revenues being taxation, £64,454,000: transfers from Consolidated Fund, £639,000; balance of defence votes, £-,- ‘’BB 000, miscellaneous (including lendlease) £9,255,000; net loans, New Zealand £53,440,000; overseas. £8,808,000. “Nearlv 50 per cent, of the total war expenditure has been financed by taxation in conformity with the principle of paying for the war as we go and so avoiding a burdensome debt at the close of hostilities,” said Mr. Fraser. “This percentage of costs met out of current revenues compares very favourably with the experience of overseas countries Of the total Army expenditure of £92,114,000, no less than £51,267,000, or more than 55 per cent., has been applied in nnv and allowances, accommodation, victualling and clothing the same items constitute £3 001-000, or 30 per cent, ot the total of £11,824,000. Iu the case of the Air Force, pay and allowances. accommodation and clothing account for £8,844,000, or 26 per cent, of the total of £32,834,000. Borrowings From Britain. “The gross sum of £20,221,000 was borrowed from the United Kingdom Government in the terms of the Memorandum of Security Agreement, and it is satisfactory to note that these borrowings babe been paid off or converted into securities iu New Zealfind to the extent of no less than £11,413,000, so that at December 31 last only £8,805,000 was owing to the United Kingdom Gbvernmeat. Provision is made for meeting this outstanding amount.” Referring to the Consolidated Fund, Mr. Eraser said the position of the ordinary revenue account was for the nine months of the current year entirely satisfactory. Thus, at December 31 last, 64 per cent, of the year’s revenue had been received, excluding income tax, compared with 53 per cent, for the same period in the last financial year, while as regards expenditure, the percentage tor the nine months of this year was 63. compared with 64 last year. It is too early to indicate the final results for the vear with such an important heading as income tax still outstanding, but it can be said with confidence that, based on the figure to date. at least the surplus as estimated in the Budget will be earned.” Mr. Fraser added.