TOTAL £175,000,000

Gisborne Herald, Volume LXX, Issue 21009, 4 February 1943, Page 4

TOTAL £175,000,000

N.Z. WAR BILL MR. FRASER’S REVIEW 50% FROM TAXATION (F.A.) CHRISTCHURCH, Feb. 3. Details' of Now Zealand’s war expenditure were given to-day by the Prime Minister, the Rt. Hon. P. 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. The expenditure on the army £92,114,000, the navy £11,824,000, the air force £32,834,000, and civil, including reverse lend-lease, £-0,038,000. . . Receipts for the same period amounted to £174,643,000. principal revenues being taxation £.64,454,000, transfers from the consolidated fund £6,398.000. balance of defence votes £2288,000, miscellaneous, including lend lease, £9,255,000, loans in New Zealand £83,440.000, and overseas £8,808.000. „ . , . “Nearly 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,” Mr. Fraser said. “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 £51,267,0.00. or over 55 per cent, has been applied in pay and allowances, accommodation'. victualling, and clothing. For the navv, the same items constitute £3.551.000. or 30 per cent of the total of £11.824,000. In the c&se of the air force, pay and allowances, victualling, and clothing l account for £8 844.000, or 26 per cent of the total of £32,834,000.

Loans From Britain

“A gross sum of £20,221.010 was borrowed from the United Kingdom Government in terms of the memorandum of security agreement, and it is satisfactory to note that these borrowings have been paid off or converted into securities in New Zealand to the extent of no less than £ll 413.000. so that at December 31 last ’onlv £8,808,000 was owing to the United '’Kingdom Government. Provision is made for meeting this outstanding amount.” Referring to the consolidated the ordinary revenue account was fund, Mr. Fraser said the position oi for the nine months of the current financial 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 for the nine months of this year is 63, cornpared with 62 last ye< Tt is too early to indicate the final results for the year with such an important heading as income tax still outstanding, but it can be said with confidence that, based on the figuies to date, at least the surplus as estimated in the Budget will be earned, Mr. Fraser added.