FINANCE

Nelson Evening Mail, Volume LIV, 21 March 1921, Page 5

FINANCE

CURB ON GOVERNMENTAL EXPENDITURE NMD FOR ECONOMY AND GOOD JUDGMENT HUT OUTLOOK NOT DJSCOfI!AGING STATEMENT BY BREAKER (By Telegraph.—Own Correspondent.) WELLINGTON, This i>ay. Tiii: premier as Minister of Finance has issued statements showing, A, the revenue and expenditure for eleven months ended 28th February, 1512.1 ; B, a statement showing the position of tlie Public Works Fund on 28r!i February 11)21; C, a statement of the actual revenue and expenditure lor the twelve months ended 28th Febtuarv, 1921 and for the eleven months ended -J"ih February 1921. _ The revenue collected under various headings was The expenditure brought to charge for the same period was i2-t.210.7-ll March, 1920, available ua.ss and means for public works was .0219,502. Additional funds have he n received from various sources making tJie total for the eleven months C.V 110,510. A further sum will be transferred from the Consolidated fund of .0140,000 and under the Finance .Vet of k 1920, the sum of ;0250,00'.; will be raised, making the gross total available for the year 1920-21 of 13,530,510.

Tlie expenditure under appropriations for eleven mouths (excluding separate accounts raving ways and means of their cwii) was £2,itio.lSu'!i. The estimated expenditure for the_ remainder of the vear is £1,099,715, total of £3,260,384. The estimated balance on 3lst March 1921 is 270,126. It will thus be seen that- a large sum lias been found for tho ptibnc works during the past eleven months, but it will be necessary to coufine ex penditiire during the coming \oar, under this heading, to urgent and pressing works only. For the twelve mouths ended 28th of February, 1921, the r-venue amounted to £32,419,566 and the expenditure to £27,794,773. The increase in customs revenue was due largely to the fact that overseas manufacturers were able to fulfil outstanding and current orders with a rapidity which was hot anticipated by importers many of whom are now overstocked. It is therefore certain that imports will be greatly reduced during the coming vear and customs revenue will b reduced in proportion. The Post and Telegraph and Rail way revenues show increases on account of additional charges imposed in order to meet the payment of higher wages and the bonus arising out of the increased cost of liv.ng. Close oversight has been maintained over expenditure, which is within the appropriations, but with the prospect of reduced revenues it ; s necessary that the utmost economy should be practiced in connection with all State activtes and admnistraon. At 31st March last the accumulate] surplus amounted to £17,500,000, tins surplus being utilized for fiisoiargeJ soldiers settlement and otner purposes for which loans would otherwise have been necessary. The public oibt had thus been saved a very large increase-, and the taxpayer has been relieved of annual interest and sinking fund charges which would amount toT roughly £1,000,000 per annum. Allocation of the accumulated surplus in this manner also investment which produces interest at the rate of 4 per cent per annum. I anticipate there will be a ; orpins ;.t 31st March next, but the excess or Customs revenue will to a great extent account for this. It is certain that Customs revenue will show a large drop next year. 1 propose to carry as much as possible, as a surplus forward to assist in tiding over that portion of the year, when, even under norm d conditions, expenditure usually largely exceeds revenue. Heads ot Departments have been instructed that they must make savings wher -ver possible. Large savings had already been made, mid further «cononnes are being effected., For instance, the temporary staff which at Ist .April, 1919, totalled 1069, has been reduced to 388 at 31st December, 1920, .vlu'.e as a result of legislation passed hist session, which authorised transfers iroin accumulated surplus referred to above our annual interest and snutng fund charges will be considerably redveed. In the last Budget Tissued a warning as to the necessity for caution tor both public and private finance, and pointed out that we must be prepared to face troubles and difficulties with which an inevitable reduction u tlie volume of money would be attended. Conditions have changed as anticipated, and thefcosition has to be laced. I do not, however, regard the outlook as cause for discouragement, but rather as au opportunity to exercise the virtues, prudence, and good judgment. The figures I have placed before you indicate that the financial position of the Dominion is quite sound, and our ability to meet all.obligations is unquestioned. Special measures are not, so much required as the practice of economy, hard work, and co-onora tion. If all classes of society co-oper-ate intelligently in maintaining the productive activity of the country, the temporary difficulties to which 1 have referred, will be easily overcome.