PUBLIC ACCOUNTS

Evening Post, Volume CXXXVII, Issue 128, 1 June 1944, Page 6

PUBLIC ACCOUNTS

YEAR'S OPERATIONS SURPLUS OF TWO MILLIONS The results of transactions for the year ended March 31 last, as disclosed in the Public Accounts, were briefly reviewed by the Acting Minister of Finance (Mr. Sullivan) today. The satisfactory state of affairs," said Mr. Sullivan, "as mentioned in Februarylast in my comments on the accounts for the nine months ended December 31, has continued and has enabled us to finish the financial year with a surplus on the year's operations of £2,232,580 in the Consolidated? Fund, while the balances in the Social ;Security Fund and the War Es:penses Account arc substantially the same as at the beginning of the year." v The War Expenses Account, said Mr. Sullivan, was now by far | the largest of the three main accounts^ the receipts for the past year into jthat account totalling £162,540,453' and the expenditure £163,161,550. An. analysis of these figures was as follows:— ( ..RECEIPTS: Revenue. £57,307;,000; Lend Lease, £32,478,000; Leans, £72,755,000; total, £162,540,000. 1 EXPENDITURE: Navy, , £8,24*,000; Army, £78,087,000; Air, £33,753j,000; Civil, £7,860,00(0; Reverse Lend L^ase, £24,453,000; redemption of war laans, £10,216,000; Rehabilitation, £54'J, 000; total, £163,161,000. • . ,; ' "The amount raised by way of loans, £72,755,000, should be reduced by/the £10,216,000 used for redemption.; of debt," continued Mr. Sullivan- ' This latter figure comprises mainly. . the over-subscription of the Third Libprty Loan to the extent of £5,000,000, which was used to redeem part1 of i the amount owing to the British Govwrnment under the Memorandum..; of Security. During the year, ficiance for war purposes to the extent; or £5,000,000 was raised by. Treasury bills, but at the close of the financial year it was possible to redeem a corresponding amount of these bills from funds available in the War Exposes Account. ■■,-,}.* "The actual increase in the debt lor war purposes during the year /was therefore £62,539,000, including ■■[ the amount borrowed under the Memorandum of Security for maintenance of our division in the. Middle ifcast. The net receipts into the War Expenses Account were thus £ 152^24,000, ' and the net war expenditure, again1 excluding redemption of debt, £152J)45,----000, as compared with the Budget Estimate of £*148,000,000. . v [ SOCIAL SECURITY FUND. "As regards the Social Security Fund," said the Minister, "the receipts for the ye-sr were £17,492,085 and' the expenditure: monetary benefits £12,282,200, medical, hospital, .etc. £5,351,547, a total of £17,633,747, leaving a net decrease of £141,662 in tVe available balance in the fund. Tbi,s position, however, was visualised ii\ the Budget,, where it was stated that excess expenditure would be met from.. the cash balance in the fund at the beginning of the year. Expenditure exceeded the estimate by £230,667, but revenue into the fund was more buoyant than anticipated to the extent of £1,217,085, enabling the very satisfactory result, as disclosed, to be achieved. CONSOLIDATED FUND. "Reverting to the Consolidated Fund," said Mr. Sullivan, "the receipts for the year totalled £48,828,273 and the expenditure £46,595,693, leaving a net surplus of approximately £2,250,000. This is very gratifying, especially in. view of the extent to which the Consolidated Fund is being utilised to assist the War Expenses Account. This policy is being followed as far as possible, as the transfer of revenue moneys from the one account to the other avoids borrowing to that extent for war purposes. "Two other very pleasing features of the past year's operations are, firstly, that by keeping our national development programme down to a minimum, only £ 4,000,000 being borrowed from departmental sources, as against £6,500,000 visualised in the Budget, we have conserved our resources to that extent for war purposes. More important, however, is the fact that our floating debt, as represented-by Treasury bills outstanding, is lower than at the close of the previous financial year the figure being £55,954,000 as at March 31, 1943, and £55,615,000 as at March 31, 1944." Mr. Sullivan added that fuller details would be given when the Budget for the current year was presented to Parliament, but in the meantime he expressed the opinion that New Zealand was fortunate in having completed another strenuous war year with the very satisfactory results as disclosed by the accounts.