The Finances of the Colony

Mataura Ensign, Volume 17, Issue 17, 26 April 1895, Page 6

The Finances of the Colony

C Post.') Tho Public Accounts that ought to have been published for the year have not yet been given to the public, but we learn from the Premier's spsech at Marten some results of the past financial year, and we do not think they can be considered very satisfactory. We learn that the excess of receipts for the year 1894-95 over 1893-94 is L 37.978, We have assumed that the aid derived from the Consolidation of Stock Act, 1884, is not included. If it be included, there will be a drop of about LBO,OOO, instead of the excess we have mentioned. So far as the expenditure is concerned/ it cannot be accurately ascertained by com* parison of two years, because there were only L 117,000 worth of debentures so issued this year under " The Consolidated Stock Act, 1884,' whilst last year there were L 284.000 worth. Assuming that the difference was L 167.000, it will be i found that the excess of expenditure this year over last is L 57,364. We believe this will be mainly caused by the additional interest, for a considerable amount of election expenses came into last year which were not paid this year. The really jgg-rst position shown by the Premier is kSe falling-off in revenue. We understand from him the Customs revenue shows L 30,000 less than was estimated. Are our readers aware that the estimate assumed that there would be , a drop of L55.5Q3 on the Customs, so that ''the actual drop on this year, com- ] pared with last year, is L 80,503 ? As the Customs is our main mode of revenue, this is an exceedingly serious item. Then i the Railways, that were under the new L regime to be managod so well, show a i drop below the estimate of L 17,000; but, , seeing that the estimate assumed that ! there would be a falling-off of L 5547, • the actual loss of revenue on the rail- , ways is no less a sum than L 22.547. And ; then as to tho actual surplus. This year there ia in round numbers LIBO.OOO, so that there is a drop of L 120,000. , Regarding the Public Works Fund, if no accretions are received by it beyond r the L 150,000 to be transferred from the Consolidated Fund, tho fund will bo practically insolvent, even assuming that ; there is less expenditure. Let us state _ how this stood last year. Last year the ; Public Works Fund No. 1 began with, a i credit balance of L 568.419. It is true i we appropriated L 578.530, but everyone ■ knew that the appropriations were put down to please members, with no intention whatever of being expended. The proof has come-, for the total expenditure ■ was only L317,Q00. It is to be re- \ membered also, regarding the expenditure, that there were liabilities against this Fund on the 31st March, 1894, of L 214.742, so that beyond tho liabilities there has never beeu L 102,258 spent. This may explain why there are so many , unemployed in the cities, and why the Charitable Aid [Boards throughout the colony have had to increase their expenditure. Now, this year we start the , fund with L 400.000, or L 168.000 less than last year. We are informed that the liabilities are very heavy. This must mean that tho liabilities are greater this year than last. If they bo so there will practically, at the end of the year 1895-96, be not only no money in the Publis Works Fund, but there will be an actual deficit. It is true that the amount of the liabilities is not stated, but when we find the Minister for Public Works apologising ia advance for the amount cf the liabilities, we may be certain that they exceed the amount of the liabilities of last year, and, as we have said, the liabilities for last year were L 214.742. Let us assume that the liabilities will be only L 250.000. That will only leave LISO,OCD in the No. 1 Public Works Fund for future appropriation. No one can. say that this is safe finance, as it simply means that the Public Works Fund has practically gone. We may point out that ths amount spent this year of the Public Works Fund is less than that spent iastyear by L 16.300. i We have not been given the, details of [ how the other revenue was made up, but we expect that there has been an increase in the Land Tax and Stamps. Nor can '* we properly .[ascertain the position until we see what liabilities have been held over. We are aware that notice, if not a circular, was sent round to the Departments before the end of March, urging 1 them not to bring in to the payments for 1 the financial year any sums that could be held over till next year, and this may 1 have helped to lessen the expenditure a little, and thus swell the surplus. Altogether, we do not think any person can ' say that the financial outlook is reassuring. The drop in the Customs and Railway returns of LIOO,OOO, as compared with last year, can hardly show a < prosperous colony. We wait for further figures, and wo believe that when the 1 full accounts aro published, it will be ■ seen that the financial outlook is even worse than we have stated.