THE BUDGET.

Hawera Star, Volume XLV, 25 July 1925, Page 5

THE BUDGET.

In introducing his first Budget, the Hon. \V. JSosvforthy paid the following tribute to his late leader: “In submitting this satisfactory statement of the finances of the Bominion for the past year, it is my sincere regret that my predecessor is not here to deliver it, as it is mainly duo to his sound administration that the present excellent’ position has been attained. 'llie late right honourable gentleman bad in the post-war years the onerous task of bringing about a considerable reduction in expenditure, and despite adverse pressure and risk of unpopularity he consistently held to a, policy that has .so improved this Bominion financially as compared with any other country in the world affected by the Great Wiar. This result was achieved, moreover, while substantial remissions in taxation and charges were granted of the annual value oh £3,750,000.” REVENUE. The total revenue received was £28,643,000. After deducting £883,000. the estimated value of concessions granted during 1924, the estimate was £27,974,620. The amount actually received was thus £668,380 in excess of the estimate, and when compared with the revenue for 1923-24, of £2/,960,3(0, shows an increaise of £682,630. The Customs revenue accounted for art increase of £331,174 over the previous year, ,tlie result of heavier imports. There is a comparative increase of £542,228 in interest on public moneys, but this is due to the payment of interest by tlie discharged soldiers settle- , ment account for 1924-25, whereas in ■ 1923-24 the amount was utilised for dic- " changed soldier housing. The outstanding interest for 1923-24 is meantime treated as a liability of the account; The other principal increases over the previous year are—Railways, £159,687 ; post and telegraph, £25,642; departmental ami other receipts, £119,103; and miscellaneous, £110,172. There was a decrease of £395,480 in income-tax and £91,211 in land-tax compared with the previous year; but. as the remissions granted in the 1924 session were estimated at £718,000, the loss is much less than anticipated, the recoveries of outstanding tax being a substantial set-off. Other decreases were—Stamp and death duties, £103,449; registration and other fees, £25,975; and territorial revenue, £10,629. The amounts of revenue received under the various headings are set out in full in table No. 3 attached to this statement. EXPENDITURE.

The year’s expenditure was £27,399,20U, being £867,2/1 less than the amount 'appropriated, but £1,251,195 over the actual expenditure of 1925-2-1. it was expected that owing cue regrading of the Public Service, railway employees, and teachers during 1924, the departmental charges would he higher, and of the increase, of £1,063,IXXJ under this heading £'6/2,000 is attri'b lit able to these causes, while old age pensions and widows’ pensions increased by £69,000, and hospital subsidies by' £149,000. The methods of , check on expenditure which have been applied since 1921 are still operating, A ~ and the saving of £867,271 on the ap"s propriations serve to indicate the continued exercise of economy by departments. The principal increases on expenditure compared with 1923-24 were: Under special Acts (mainly on account of hospital subsidies under t}ie new legislation of 1923,', £206,309; railways, £483,442; post and telegraph, £295,484 ; education, £172,763; . public health, £36,966; Department of Agriculture, £55,568; industries and commerce (due •to Exhibition grants and expenses), £52,343; Customs (.principally due to transfer of tire tax to main highways account), £50,619. There were decreases in:—lnternal Affairs, £44,541; maintenance of roads, £26,821; services not provided for, £166,857. The results of the year’s operations amply confirm the buoyancy of the revenue expected Iby the Late Finance'Minister. It is, however, to some extent clue to causes which may, if unchecked, react to the detriment of our present prosperity, by leading to over importing and a disturbance in our trade balance which, the recent fall in wool price* will appreciably affect. We have ;n the last few years transferred a. large sum to the 'Public Works Fund apd to other debit-saving purposes out of accumulated revenue, which is consequently much reduced. The use of revenue for capital purposes will for this reason be much restricted in future. Capital for further development will require to be met in. larger proportion* out of loan, and burrowing should be closely confined to interestearning or directly* productive purposes in order to avoid unduly increased debt changes to the. taxpayer. Consolidated Fund (Ordinary Revenue Account). —Revenue. £23,64.3,000; expenditure, £27,399,200; excess of revenue over expenditure. £1.243.800. Estimated revenue. 1924-25, £28.857,620; less estimated value of concessions granted, £883.000—£27,974,620; actual re-omie, £28,643,000. Revenue greater than 1923-24 by £682,630.

DOMINION’S FINANCES. SOUND POSITION REVEALED. INCREASED REVENUb REPORTED. • PROPOSALS FOR CURRENT YEAR. The Financial Statement was presented to the House of Representatives last night by the Hon. W. Nosworthy, Minister for Finance. The document, which dealt with the operations of the Government for the past financial year, 1924-25, revealed the satisfactory position of the country’s finances, and disclosed a surplus of £1,243,800. Other features were a general increase in revenue, a good trade balance, and a reflection of the general prosperity enjoyed by New Zealanders.

In commencing the Statement, the Minister paid a tribute to the work of the late Rt. Hon. W. F. Massey, attributing the present sound financial position of the country to his -onerous task in pos - war years in carrying out a policy which, although it was ,to a arge extent an unpopular one, safely brought the country through perilous years. ‘

Expenditure exceeded previous year by £1,251,195. . iv. Salaries and wages increased by £672,000; balance forward at March 31, 1925, £4,150,806. Transferred from accumulate cl surpluses to: Public Works bund, £1,000,000; Loans Redemption Account, £1,052,130. Belief from use of surplus rev enue. Interest-earning investments produce £780,000; saving, on utilisation of money for capital purposes, £390,0UU, total relief thus afforded, £1,175,000. No revenue Treasury bills oiutsitandPublic works expenditure (including transfer to main highways), £4,357,440. Electric supply expenditure, £B4/,4/8 ■Main Highways. —Receipts, (a) revenue account £459,150, (b) construction fund £226,000 total, £685,150; expenditure, (a) out of revenue £l2/,408, (b) construction fund £225,454 total, £352,912. New agreement in respect to migrants from United Kingdom.. Customs and excise revenue, £7,689,192.

Increa.se in Customs revenue over 1923-24, £327,409. Exports for financial year, £54, uL,158; imports for financial year, £49,821,095; total trade, £104,592,253; excesis of exports over imports, £4,950,0(33 Inland Rlevenue. —Land tax, £1,335,251; income tax, £3,386,052; land and income tax less than previous year, due to reductionis and concessions, £486,691; stamp and death duties, £3,240,332. Working Railways. —Receipts, £7,112,524;‘ working expenses, £5,545,416; excess of receipts, £1,567,108. Post and Telegraph.—Receipts, £2,868,882; expenditure, £2,413,436; excess of receipts. £453,446. Post Office Savings Bank.— Number of depositors, 735,158 ; amount at credit, £45,267,708. War loan certificates redeemed during year, £675,163. Education. —Total expenditure, £3,649,875; expenditure on school buildings, 1924-25, £462,212; expenditure on school buildings .since April 1, 1919, £2,340,542. Subsidies to Hospital Boards, £561,708. •

Pensions.—. Total paid, 1924-25, £2,403,614; paid for war pensions, £1,242,182 ; total expenditure on war pensions, £11,382,178. Pensions for blind established.

National Provident Fund. —Contributors, 24,231; total fund, £1,165,284; maternity allowances paid, £40,292. Superannuation. —Total funds: Public service, £2,197,400; railways, £734,112; teachers, £942,755. Since inauguration of the funds: Total contributions by employees of all sendees, £5,500,000; total subsidies by State, £2,409,500; cost-of-living bonuses paid to annuitants, £42,782. Purchase of wheat to supplement supplies grown in the Dominion. Financial assistance provided for New Zealand South Seas Exhibition. 'Land 'Settlement. —>182,789 acres subdivided into 1009 holdings opened for selection; 461,000 acres subdivided into 1280 holdings taken up; 480,000 acres of Crown settlement and national endowment landii now open for selection. Discharged soldiers settlement. —Total advances in 1924-25, £717.340; receipts, £1,591,483; total capital provided for soldiers settlement, £26,576,336. Revaluation ol : farms by Dominion Revaluation Board. —Reductions in capital value of leaseholds, £1,603,860; reductions in mortgages, £672,000; total reductions, £2,280,800. Land-drainage.—Continued progress in development of waste lands Twenty-nine thousand five hundred and twenty-seven acres of native land purchased. Part, of Selwyn estate taken over by State Forests Service.

State Advances. —.Total number of loan* granted, 1924-25, 5322; amount, £5,880,485; granted for repayment of mortgages since October, 1922, £7,345,295; total advances by Department since 1914, £26,143,191. Housing.—Assistance rendered by the Government during the last six financial years: State advances, £9,940,317 ; discharged soldiers (urban areas), £B,345,311; discharged soldiers (farm properties), £1,186,000; Railway Department (State employees), £465,655; Public Works Department (State employees), £227,640; total, 33,365 houses at a cost of £20,164,923. Western Samoa. —Crown estates .show profits and satisfactory leases effected. German reparation payment* received to June 30, 1925, £103.669. Public Debt.—-Gross debt at March 31, 1925, £227,814,647. Subdivided: Ordinary. £119,936,859; war, £76,631,722; State advances. £21,436.180; dis■linrcred soldiers settlement, £9,809,886. inkiw- funds accrued, £13,462,839. Net debt, £214.351,808. Loans paid off during the year, £3,249,966. Imperial funded debt. —Principal reoakl. 1924-25. £507.718; interest. 192425 £1.344.212; total payment, 1924-25, £1,851.930. Further purchase of New Zealand 4 per cent, stock. £100.000: saving of nrincbrwil and interest effected through cancellation, before maturity of total stock purchased to date. £94.000; vebume of free of income tax securities reduced +o £39,706.299 ; exchange rates London-New' Zealand now at par.