BUDGET DEFICIT

Grey River Argus, 24 August 1934, Page 8

BUDGET DEFICIT

BALANCE NEXT TIME 302 MILLION DEBT Over Three Millions for Works A NATIONAL MORTGAGE CORPORATION. LARGE FLOATING DEBT. RESERVE BANK AND EXCHANGE. WELLINGTON, August 23. Right Hon. J. G. Coates, Minister of Finance, delivered the Financial Statement this evening, lie said:— Viewing world conditions generally, there can be no doubt that the past year witnessed substantial progress towards economic recovery. The movement is more marked in some countries than in others, with the United Kingdom well in the lead. The pro gross already made overseas 5s ‘reflected in the increase in our export prices. The recovery in wool prices was spectacular, amounting to a substantial increase over the previous year. This not only eased the difficulties of woolgrowers, but put fresh heart into the whole community. Ar more recent sales prices have receded a little from the peak level. Prices of meat also rose considerably during last year, conditions in the United Kingdom meat-market showing a gratifying improvement following the Ottawa Conference in 1932. The indexnumber of our export prices increased by 40 per cent. The prices of dairy produce have remained at a disastrously low level. At the same time, the dairy produce marketing situation iu the United Kingdom has been under anxious scrutiny by the Government of the United Kingdom, and steps have been taken there to render assistance to milk producers. Meat, and dairy produce account for not less than 65 per cent, of New Zealand’s total export values. We are vitally concerned in the steps in the United Kingdom in the direction of assisting and planning her agriculture. It goes to the heart of our own economic, life. The present tendency in the United Kingdom is to seek a greater degree, of self-sufficiency in food supplies. Production of meat and dairying are types of farming that have long existed an I can be extended in the United Kingdom, and it so happens that these are the particular products in ■which New Zealand has specialised. The farming industry generally has experienced a favourable season, resulting in a substantial increase in butterfat production and a record lambing in sheep farming. The yield per acre in grain growing was appreciably above the average, while there has been considerable increase in pig keeping. The Dominion's frozen pork exports for the past three calendar years were; 1931, 117,078 cwt.; 1932, 143,640 cwt.; 1933, 321,338 cwt.

Mortgage Investments. —The mortgage situation generally is complicated and an obstacle to economic recovery. The statutory reductions cannot be anything more than a temporary expedient, and what is wanted now is a sound method of liquidating the position. The problem resolves itself into finding more adequate means of taking full advantage of the lower interest rates. Any further general reductions by legislation would be inequitable and would tend to shatter confidence.

National Mortgage Corporation.- -It is accordingly considered that, the solution does not lie in further legislation bearing directly on interest, rates, but in facilitating the refinancing of existing debts at lower interest rates. For this purpose, and to organise mortgage finance, on a comprehensive basis, it is proposed next session to bring down legislation for the incorporation by statute of a National Mortgage Corporation upon a basis somewhat similar to that of the Reserve Bank. To bridge the gap between the stock exchanges and mortgages, and thereby obtain finance at the lowest possible rates of interest, this corporation will be empowered to raise capital by the sale of mortgage bonds similar to the Rural Advances bonds which have been issued against the assets of that branch of the State Advances Office. Huge sums have been raised by the sale of such bonds on the Stock Exchanges of Europe and America. The underlying idea of these bonds is to spread risks by making the bonds a charge over all mortgages held and to turn mortgages into readily saleable stock exchange securities representing small amounts. It is considered that the proposed corporation, if properly established under the control of a Board that would command confidence, would be able to sell bonds at 4 per cent, or lower and generally be able to lend for repayment of existing mortgages at one-half per conf, above its borrowing rate. A groat many mortgages are al present running on overdue, ami in these, cases refinancing could proceed without delay. Other flat mortgages are falling due from flay to day, ami the opportunity Io refinance the bulk of them will occur within a few years. Present longterm mortgages bearing high rates of interest, without a condition allowing repayment in a lump sum will present a difficulty that may have to be specially provided for. As it is (dear that mortgage can be satisfactorilv dealt with only individually on their merits, an esesntial requirement is an efficient field force to inspect and report upon properties and afterwards keep in touch with mortgagors. Operating on ,-i large scale, it will be practicable for the corporation to maintain such a force and keep it fully employed. To save a costly duplication of machinery in this respect for reviewing the position of present State mortgages, and to obviate duplication and overlapping in other directions, the new organisation, under suitable financial arrangements with fhe Government. will take over the present investments of tin' State Advances Office, the Lands Department, and the Rural Tut ermediaie Credit. Board. The whole proposal is too big to be dealt with this session, as a considerable amount of preliminarv work will bp necessarv in elaborating if in detail before legislation can bp drafted. T may add that it is not intended that the corporation should take over all mortgages, but its operations will be large enough to influence the market, and other mortgages will doubtless follow its lend in the matter of rates of interest. Tt is realised that rearranT- ' ing and stabilising mortgage finances

generally is a task of national importance, but until it is done the financial rehabilitation of this Dominion cannot be considered complete. With this corporation established to do Hie work, however, farmers and other mortgagors can rely upon expert assistance free from any suspicion of undue profit taking. Innumerable arrangements with second and subsequent mortgagees will be involved in the effort to rearrange finances within the limit of the productive capacity of the farm, but if cheaper rates are obtained for a first mortgage as large as a present-day productive value warrants, second mortgagees stand to gain from the arrangement, and, generally, should be willing to meet the corporation in a reasonable spirit. The general movement in interest rates is still downward. The trading banks made a further reduction in their deposit rates, ranging from a half to a quarter per cent., operative from sth July, while the maximum rates of interest that could be paid for deposits by building and investment societies and trading companies were lowered proportionately as from the Ist. August. From the same date the interest rate on Post Office Savings Bank deposits above .£5OO was reduced to per cent. The Government expects a further substantial reduction in the bank overdraft rate for best accounts in November next.

The improvement in economic conditions during last year was to some extent reflected in the public revenues, and this fact, combined with a saving of £250.000 in expenditure, enabled the deficit to be reduced from the Budget forecast of £2,094,000 to £709,000. All things considered, it will, I think, be generally agreed that this was a satisfactory outcome to a very difficult year. The accounts for the year have already been published, and are summarised in comparative form in the tables attached to this statement.

The total revenue received during the year amounted to £23,492,740, comprising taxation receipts, £17,059.830; interest, £2,863,856; other departmental receipts, £1,569,603; in addition to which £2.000,000 was obtained by liquidating reserves invested in discharged soldiers settlement mortgages, advances being obtained from the Bank of New Zealand against the hypothecation of the securities. From the comparative tables attached to this statement it will be seen that the total receipts from taxation exceeded the Budget estimate by £845,830, the principal items in excess being Customs duties, £285,000; income tax, £261,000; stamp and death duties, £113.000; and sales tax, £97,000. Practically all the items of taxation produced more thaii the estimate, and the total amount received from this source was £1,455,000 more than in the previous year.

The only important feature of the interest receipts was the fact that interest on railway capital liability showed an increase of £294.000 over the estimate, and was £234,000 greater than the amount received in the previous year. This is a further indication of an improvement in the economic position of Hie Dominion. Little comment is called for regarding the receipts from other departmental activities, which, in total, were £28.000 greater than estimated. The improved position of the farming community is reflected in the increased returns from territorial revenue (£65,000) and national endowment revenue (£19,000). The net expenditure for the year amounted to £24.202,027, against an estimate of £24,456.846, a net saving of £254,819. The bulk of this saving was made under the annual appropriations, and, as the various votes had received careful'consideration, this result can he regarded as eminently satisfactory, and is a clear indication of the continued efforts of all Departments to maintain efficiency at the lowest possible cost. As will be seen from the comparative tables, almost all Departments contributed their share to the saving. The operations for the year may be summarised as follows:—

Deficit £709,27S Extensive operations also took place during the year under the Banks Indemnity (Exchange) Act, the amount of sterling purchased from the banks being £26,684,000. Of this sum, however, £8,500,000 was utilised by the Government for its own requirements, so the net surplus sterling taken over for the year was £18,184,000. I may mention for the information of honourable members, that, during its currency, from the 20th January, 1933, to the 31 st July, 1934, the sterling purchased under its provisions amounted to £36,208,000, of which £13.198,692 was utilised by the Government for its own requirements. The net amount of surplus sterling taken over was thu5.£23.009,308. The greater part of the surplus sterling has already been sold to the Reserve Bank at its public buying rale of £124 New Zealand for £lOO sterling, and the balance will similarly be disposed of before the end of September, the whole operations being governed by the maturity dates of investments in London and of liabilities in New Zealand. The proceeds in New Zealand will be sufficient to pay off the Treasury bills and to extinguish the suspense item, and are being applied to these purposes. TREASURY BILLS. Apart from renewals and conversions, the Treasury bills issued under the Bunks Indemnity (Exchange) Act during the year amounted to £29,384,732, of which £12,360,197 had been repaid by the 3lst March. Thus the net increase for the year was £17,024,535, and this, added to £2,380,337 of bills carried forward from the previous year, resulted in £19,404,872 of this class of Treasury bills, of which £16,319,672 bore interest at 5 per cent, per annum and the balance at rates varying from 2| per cent, to 4 per cent., being outstanding on 31st March, 1934. Bills to more than this amount have recently been redeemed with the proceeds from the sale to the Reserve Bank of New Zealand of surplus sterling. Tn so vtr as revenue bills are concerned the published accounts show that Treasury bills issued during the year amounted to £39,606,077, includ-

ing issues in renewal. The total accommodation received, however, was £11,346,000, of which £6,977,000 was obtained from the banks and £4,369,000 from Government, ’accounts and the public. The balance consisted of issues in renewal of these bills and also of the £1,585,000 of bills outstanding on the 31st March, 1933. The bills issued had a currency not exceeding six months, and were discounted at rates ranging from 2j per cent, to 3 per cent, in the case of bills taken up by Government accounts and the public, and 5 per cent, per annum in the case of bills issued to the banks. In the aggregate £37,738,968 of revenue bills was paid off, Hie amount being £1,867,109 less than the issues during the year. The result was that by the 31st March last revenue, bills, outstanding had been increased to £3,452,109. The floating debt as at 31st March last amounted to £22,856,981, as compared with £3,965,337 as at 31st March, 1933, an increase of £18,891,644 for the year. The greate: part of the bills issued under the Bills Indemnity (Exchange) Act were redeemed on the Ist August last, and the balance of this class of hill will be repaid shortly. Although it does not form part of the public debt in the ordinary sense of the term, there is also the liability under the arrangements made for liquidation of reserves by the hypothecation of discharged soldier settlement securities to two of the banks. This is a self-contained arrangement whereby the liability incurred to secure immediate liquidation for the. Consolidated Fund will be gradually repaid from the capital repayments received und«r the table mortgages in which the reserves are invested. The amount of the liability in question is now £4,050,000, representing a net increase of £1,800,000 during the last financial year . PUBLIC DEBT. Apart from the operations affecting the floating debt which I have just explained, there was a net increase in the amount of the public debt during the year of £1,277,394, £491.254 being due to premiums arising under the conversion operations and £786,140 to operations during the year. The successful conversion of £5,000.000 5-per-cenL debt into 3Lper-cent. securities at 97 in October last, referred to in last year’s Budget, was the only debt operation undertaken in London during the financial year. Tn the Dominion additional long-term debt to the amount of £4,522,765 was raised for the following purposes:—Capital expenditure: Public works (including hvdro-electric supply) £1,662,000; land for settlements, £198,000: main highways. £‘203.000; State Forests, £75.000; redemptions of debt, £2,384.075; total. £4.552.765. Of this £4,522,765 raised in New Zealand £1.906,090 was obtained from the public at 3] per cent., while the balance of £2,616,675 was derived from departmental investments. Redemptions of long-term debt during the financial year amounted to £3,736,625, the funds being derived from the following sources: —For debt repayment: Repayment of Public Debt. Act, 1925, £596.270; reparations and war credits, £650; separate accounts, £754.040; from issues in redemption, £2,385,665; total, £3,736,625. Thus the additional debt incurred exceeded repayments by £786,140> Of the. redemptions effected, £104,560 was held in Australia and the balance in New Zealand. Thanks to the generosity of Great Britain in extending the. mor.v torium. on our funded war debt and certain other debts due to the British Government, no payments were made in respect of this portion of the debt during last financial year. The debt ! operations for last financial year may be summarised as follows: —Dated as at 31st March, 1933. £282,622,958; phi.' net increase in floating debt (mostly temporary) as previously mentioned, £18,891,644; total, £301,514,602; plus net increase in long-term debt—(a) due to loan conversion £491,254, (b i due to operations during year £786.140; public debt as al 31st March, 1934, £302,791,996. The domicile of the debt as a whole on the. 31>t March. 1934, was as follows: London, £160,908,105; Australia, £2.908,150; New Zealand, £138,975,741; total, £302,791,996.

Loan Programme. —For the current financial year it is again intended to proceed with a moderate programme of capital expenditure amounting in the aggregate to £3,560,000. It is antieipatecl that funds already in hand, together with departmental investments, will be sufficient to finance this expenditure. Accordingly, it will not be necessary to issue any special loan or make any further offer of Government securities to the public thi.-. financial year. The proposals are embodied in detail iu the estimates, bur it will perhaps assist honourable members if I briefly outline the principal items concerned. . , Railway Construction, Etc. —With the completion of the main line between Taranaki and the North Island Main Trunk, to be handed over to the Railways Department on the Ist September, railway construction will cease. There is in hand, however, an improvement work of considerable magnitude in the Wellington terminal facilities including the Tawa Flat deviation and the electrification of the line, to Paekakariki. Lt is estimated that a net amount of £227,000 will be required for these purposes during the current financial year, but nearly £1,000,000 will be required to complete the whole undertaking.

Hydro-electric Works.—The only other large single undertaking at present in hand is Waitaki River Electric Power Scheme, which, it is anticipated, will come into operation towards the end of this year after further ex penditure amounting to £306,000. In addition, some substantial amounts shown in the estimates will be required for various extensions Io the other large schemes. The net estimate of the total capital expenditure for the year on hydro-electric works is £550,000. I may add that these hydroelectric schemes continue to be a financial success. The net surplus for last financial year, after providing for working expenses, depreciation, ami interest, was £117,000. which is to be applied towards sinking fund and reduction of part losses. Public Buildings. —Another major item in this year’s capital programme is public buildings, including schools, for which a net vote of £435,000 is proposed. The largest single work iu hand is the Dunedin post office, for which if is estimated £120,000 will be required this year. Tn addition, £150,000 is (o be provided for school buildings, primary and secondary, and £90,000 for mental hospitals, where additional accommodation is urgently needed. An instalment of £30,000, being portion of the subsidy of up to £lOO.OOO promised for the National Art Gallery and Dominion Museum, is also provided on the estimates. New Major Works. —It is proposed to commence the erection of new administratvie blocks of buildings to house Government ii> Wellington and Auckland. 'The amount

now being paid by way of rent for additional accommodation would probably be sufficient to pay interest and sinking fund on the capital cost, of a, new building to house all Departments. The carrying-out now of other necessary building works is considered by the Government as economically sound quite apart from the associated immediate benefits that will accrue in acceleration of employment in the various trades concerned.

Highways Expenditure. —Provision to the extent of £1,910,000 is being made for expenditure on highways and roads apart from cost of administration. Of this amount £900,000, representing an increase of £255,000 over last year’s expenditure, is being provided out of the Main Highways Revenue Fund for maintenance expenditure. On the high ways-const ruction work it is proposed to spend £510,000, about half of which is for bridges and the balance for sealing and other surface improvements. This leaves £500,000 for expenditure under the Public Works Fund vote for settlement roads in the various counties throughout the Dominion. The expenditure will he mostly for metalling roads in the more remote districts. In addition, as was the case last year, a considerable amount of road works will be carried out with assistance from unemployment funds. Other items in the programme are £260.000 for extensions of the telephone and telegraph systems, and £220.000 for irrigation, lands improvement, and swamp drainage. Continuation of the work on the Omakau Irrigation Scheme in Central Otago will absorb £64,000, while £50.000 will be spent on the Taupiri Drainage Scheme, and considerable sums in continuing the reclamation of valuable harbour flats in North Auckland. Summary of Capital Programme. — As may be seen from the estimates, various smaller amounts have been set down for other votes. To summarise the position, I may say that the capital programme is broadly made up as follows: Public works, £2,862,000; small farms scheme, £375.000; additional expenditure for land development, £150.000; native land development. £120.000; forestry, £53,000; total, £3,560,000. UNEMPLOYMENT FUND. At the end of the year the finances were in a sound position. Last year the number assisted from the fund reached the record figure of 75,000 men. Without the Building Subsidy Scheme and other measures to stimulate employment in ordinary industry this figure would have been greatly exceeded. The unemployment position is considerably better than it was at this time last year. The latest figures of those who are a charge on the Unemployment Fund are 60,000, a decrease of 9,000 over the corresponding date last vear.

Tn previous years the unemployed commenced to rise in March. No such movement has taken place this year. The total figures are now lower than since the ened of March, 1932. This indicates a general improvement. As a result of the introduction of the gold prospecting and building schemes, the placement of workers in camps with the Public Works and Forestry Departments, and other measures bv the Board, the number employed on part-time work has been consider ably reduced. Three years ago over 90 per cent, of the unemployed were in receipt of part-time relief under Scheme 5, whereas to-day under 60 pe~ cent, are so employed. Numbers of local employing authorities are now making special efforts to put in hand new works, such as street improvement, drainage, water supply, etc., under normal working conditions.

At the commencement of the year it was estimated that revenue from unemployment taxation would return £4,300.000. The actual receipts were £1.427,000, of which £428,500 was derived from the levy, £2,892,000 from the tax on salaries and wages, and £1.106,500 from the special charge on other income. POSITION FOR 1934-35. Forecast. —The public revenues are moving steadily upward, a definite indication that economic conditions are on the mend. It is not necessary to bring down any proposals for increasing taxation. The situation does not yet warrant any further reductions. Customs revenue during the closing months of last financial year and the first four months of this year has been more buoyant, and I am satisfied that we can rely upon a comparative increase of approximately £1,115,000 for the year.

The returns from the sales tax are also satisfactory, and I have allowed for an increase of £300,000 under this heading. Taxation.—lncome tax last year exceeded expectations, and, as last year was certainly a better trading year than- the previous one, it is reasonable to allow for a further substantial increase in tax for this year. It is difficult to assess the amount of increase to be expected, but, after careful consideration. it has been set down at approximate!}' £690,000. Land tax is affected by decreases in valuations, so for this item 1 have allowed for a fall of £20,000. For all other items of taxation excepting beer duty I expect increases over last year’s receipts as follows; Highways revenue, £156,000; stamp and death duties, £17,000; film hire tax, £12,000; gold export duty. £3.000. In so far as beer duty is concerned the reduction in import’ and excise duties already announced will sliglitlv more than absorb the increase that otherwise would have occurred. The aggregate net increjise for all items of taxation is estimated at £2,245,000. In regard to interest receipts and “other receipts” apart from reserves, it is anticipated the aggregate amount to tome in will be £214.000 in excess of last vear’s receipts. Profits from the change-over Io our silver coinage account for £lOO,OOO of this net increase. Reserve Funds. — Last year the revenue was augmented by £2,000,000 drawn from reserves liquidated by hvpofhecating discharged soldiers settlement mortgages in which the amount was invested. It is not considered advisable to anticipate further the repayment of these mortgages. There is. however, a balance in the general Reserve Fund that can be made available this year. Section 3 ol the Finance Act, 1931 (No. 41 empowered the transfer to the (^onsolidnl«'<l Fund of any balance remaining after Ink ing into account all commitments for the purposes of the Hawke’s Bay Earthquake Act. 1931. The remainin'! commitments can now be definitely assessed. so it is intended Io exercise the authority cited and transfer £300.000 to augment the Budget revenues for this vear. The use of reserves has been criticised in some quarters, but they were accumulated in more prosperous times for the purpose of easing taxation in times of stress.

When circumstances permit, an effort should be made to build up fresh reThe aggregate estimated increase in the revenue that I have received is £2.460,000. Deducting the comparative decrease of £1,700,000 in the amount of reserves to be used, there remains a net increase in the total Budget receipts of £760,000. ESTIMATED expenditure. On the other side there is a saving of £620,000 in the cost of debt services due, firstly, to the fact that this vear we obtain the full benefit from the public debt conversion operations; and, secondly, to a saving in interest on Treasury'bills. All bills issued for the purposes of Banks Indemnity (Exchange) Act are now being paid off. Exchange. —The estimates of the cost* of exchange on London for normal requirements show a decrease ia comparison with last year’s expenditure of £492,000. The amount of sterling required this year is somewhat less, but £330,000 of the saving is due to a recovery of past expenditure arising out of the sale to the Reserve Bank of the surplus sterling acquire I under the Banks Indemnity (Exchange) Act. The exchange on £1 910,009 purchased in 1932-33 was charged to the Budget of that year, and this balance of £330,000 remains after the suspense item has been ex-

tinguished. Against these decreases, totalling £1,112,000, have to be set off unavoidable increases. Firstly*, there is an increase of £160,000 in the payments for highways purposes. Last year legislative provision was made to retain up to £500,000 of these moneys for o-eneral use in the Consolidated Fund. Tl is considered advisable to make a similar provision in respect of the current financial year. In doing so, I am not unmindful of the necessity for maintaining the highways of the Dominion. The provision being made for maintenance work this year is £2.>.».000 greater than was expended la>i year, i while for construction work on bridges, sealing, and surface improve ments an additional £318.000 is being [ provided. The total increase f«»r highways is thus £573,000. An increase of £54,000 shown tor “other special Acts” is mostly due to a larger amount of national endowment receipts being available for the purposes of education and pensions. Under the annual votes, the estimates for this year are £300,(ioo grearer than the expenditure for last year, accounted for by an additional sion of £260.000 being made fo feivCe, chiefly for more up-to-date coast defences and aircraft, and £56.000 additional required for Naval detem-e. There is also a normal increase of £lOO,OOO in pensions, but this i< offset bv a reduction under Vote “Agriculture” of £195,000 due to smaller subsidies to manufacturers of fertilisers and the abolition of the sp«bates on railway freights on farm pro ducts for which’ better prices are now obtained. Superannuation. —Is there any necessity for continuing to build up a capital fund to cover future superannuation requirements of Government employees? British experience suggests something in the view contrary to that which we have hitherto accepted. We have gone tar Zealand in applying the principle that the Government’s responsibility shoul-l attach to current requirements rather than amassing funds. The Government are thus responsible for subsidies, for payment of additional allowances to widows and dependent children, and for reimbursing the funds for loss of income due to statutory adjustments in interest rates. The state’s contribution to the three funds tor financial year amounted to £430,000, made up of £340,000 in fixed subsidies, £55,000 to offset the reductions in interest on investments as a result of conversions and the statutory reduction in mortgage interest, and £35,000 to cover pensions to widows and children of deceased contributors :im| annuitants and cost of living bonus to annuitants with small pension Ot the aggregate cost approximately’ £385,000 was borne by the Consolidated Fund and £45,000 by* trading Departments. The proposition put forward, as an alternative to the revision of superannuation legislation on lines that would make the funds actuarily sound, is as follows:— (11 The Government to accept direct responsibility’ for payment of all retiring allowances due. (2) The existing funds. which amount in the total to £5,166,QQ0. to be held intact as a reserve fund? th? interest thereon being applied towards meeting retiring allowances of each class. The accumulated funds tn bi held in trust by the Public Trustee, but not to he further increased. (3) An absolute statutory right to retiring allowances to be conferred on Government employees, provision being made for payment thereof without further appropriation. (41 The control and administration of the existing funds to be unified under one authoritv.

It is proposed for this vear to pay into the funds an additional subsidy of approximately £2OO 000 to provide for present pensions without further diminishing the existing capital of the Funds. ESTIMATES OF REVENUE To sum up the whole position the estimates of revenue are as follow - — Taxation: Customs, £7,600,000; leer duty. £625.000; sales tax, £2,150.""": film hire tax, £45,000; gold ex 1 ": - duty, £120.000; highways, £l>6u.‘ stamp and death duties. £2.730.0f"’; I land tax, £480,000; income t-ix, £3.650,000; miscellaneous. £45.""0 (total £19.305.0001; interest recek £2.885,000; other receipts. £1.762. : from reserves, £300.000; grand total, £24.252,000. Estimates of expenditure; Debt -«‘rvices. £9,777 000; transfer of high" revenue. £1,362,000; exchange. £l.- ' 000; other permanent appronriat i"’ £109.000; annual votes—social vices. £6.961.000; other votes. £.“>.79’. 000 (total main estimates £23.605.0<i0 : additional superannuation subsidi" . £200.000; five per cent, increase in salaries and wages, £205.000; five ne: cent, increase in old age pension-. £34.000: other supplementary esti mates. £200.000; grand total. £24,241. 000.

Expenditure. Permanent appropriations— £ £ Debt services 10,397,332 Exchange ],797,188 Highways 1,201,837 Other services 353,797 Annual apppropriations— Social services 6,841,819 Other services 3,610,054 24,302,027 Revenue. Taxation 17,059,830 Interest 2,863,856 Other receipts 1,569,063 From reserves 2,000,000 23,492,749