DOMINION'S FINANCE.

New Zealand Herald, Volume LV, Issue 16825, 16 April 1918, Page 4

DOMINION'S FINANCE.

REVENUE OF £20,000,000.

SURPLUS OF £4,250,000,

ESTIMATE GREATLY EXCEEDED i . STRONG FINANCIAL POSITION [BY TELEGRAPH.— PRESS ASSOCIATION.] WELLINGTON, Monday. A statement regarding the finances of the Dominion for the year ended March 31 was made by Sir Joseph Ward in the ! House of Representatives this afternoon. I The Minister explained that the final , figures are not yet available, but those I which he gave, though only approximate, I might be taken as giving a" fair statement of the financial position of the Dominion. The returns of revenue are as follows :— j Increase j 1917-18. 1916-17. or decrease. . Customs ... £3.361.380 £3.8.19,675 £488,2, A ■ Stamp & death I , duties ... 1.863,592 1,699,035 164,557' 1 Postal & tele- '■ graph ... 1.830.591 1,815,558 15,036' Land tax ... 1.381,194 713,118 671,076* Income tax ... 6,610,719 4,262.126 1.348.593' Beer duty ... 237.075 187,953 -19.122' : Railways, ... 4.575.465 4.836,275 260.810+ i Registration & ! other fees... 92,314 108,044 15,703+ Marine ... 37,311 43,712 6,431+ • Miscellaneous 681 929 618. 165.866* j Territorial ... 199.795 215.787 16,992* National endowment revenue ... 100.493 85.971 14,522' Other receipts 24,030 32,200 8,170+ Totals ...£20,000,918 £18,367,547 £1,633,371' ' Increase + Decrease. Continuing, the Minister said the substantial increase shown by these figures was largely due to the increased direct taxation imposed by last year's legislation. The Year's Expenditure. The expenditure out of appropriations during the year compiled as at April 8 compared with the previous financial year, was £11 follows— Inc. or de--1917-18. 1916-17. crease. Permanent ChargesCivil list ... £24,624 £27,465 £2,631+ Interest and sinking fund 4,403,224 4,014,792 888,432' Under special Acts ... 2,003,720 2,053,098 49,378+ Annual tionsLegislative ... 41.105 34,939 6,166* Finance ... 129.722 106,722 23,000' Post and telegraph ... 1,216.445 1,368,490 152,045+ Railways .. 2,996,411 2,871,977 124,434' Public build- . in?s, etc. 87.560 94.939 7,379+ Native ... 22,231 24,191 1,960+ Justice ... 435.173 459,914 24.741+ Mines ... 26,324 28,278 1,954+ Internal affairs ... 521.822 474.965 46 857" Defence ... 403,414 438,656 35,242t Customs and murine ... 153 829 169,865 16.036+ Labour ... 29,459 32,725 3,266+ Lands & survey 193,056 192.992 b4* Agricu'ture 84.227 216.897 132,670+ Education ... 1,540,718 1,406.264 134,454* Services not provided for... 4.142 41,601 37,459+ Totals ...£14.317,216 £14,058.770 £258,446' ' Increase. t Decrease. The result of the year's operations, compared with the corresponding figures foe the previous year, was as follows: — 1918. 1917. Balance April 1.. £~474,854 £2,166,0,7 lktcipls .. . . .u.uiA),;jlß 10,<.0,,047 26,475,772 20,633,624 Less expenditure .. 14,317,216 14,058,770 Hal. on Mar. 31 £12,158,556 £6,474,855 The balance at April 1, 1918, cornpried : Cash, £1,965,597; advances outstanding, £1,464,142; investments, £8,728,817. The previous year's balance , represented: Cash, £2,298,643; advances outstanding, £259,080; and investments, £3,917,731. , Accumulated Reserves. ,

Sir Joseph Ward remarked that there was a very large increase in the expenditure as compared with the previous year, and for this the charges for interest and sinking fund and the increases in the railway and education expenditure are chiefly responsible. A comparison of the revenue with the expenditure shows that if there is included in the expenditure the whole sum not accounted for by the imprestees, there will be approximately a surplus of £4,250,000 for the past year. The imprest amounts to £1,464,000, the imprests both in the Dominion and Britain being larger than ordinarily. TJi/Oil the accounting of the imprests is brought much closer up, tho exact figures for the 12 months cannot be given. The total accumulated surplus at the end of the year 1916-17 was £6,474,854, so that the total accumulated surplus at the end of 1917-18 is approximately £10,750,000. Out of this accumulation of profits we have invested in London in Imperial Government securities at present £8,728,817. This investment of our surplus moneys with the Imperial Government is, in my opinion, sound and desirable. The Imperial Government has made advances from time to time for which it has accepted the stock of this country in payment, amounting probably to about £19,000,000. While retaining the money for our own requirements at the end'of the war, it is desirable that we should give the Mother Country relief by investing this surplus. Referring to the Public Works Fund, the Minister said the policy of the Government had necessarily been a cautious one in regard to public works expenditure, but notwithstanding the reduced activities of the Department, owing to war conditions, there had been a total expenditure during the twelve months of £1,244,942, including sums in the bands o' tho imprestees.

A Policy of Prudence. In conclusion, Sir Joseph Ward said : " The surplus is a larger one than I estimated when submitting the Budget. 'Die f"™' receipts are approximately £2.000,000 greater than I indicated we were likely to receive, and the expendiI ture is not much less than the estimate. j I want to emphasise again that during the times through which we are passing I consider it is my duty as Finance Minis- . ter to keep the estimats down to as low ; at. amount as is prudent, so as tq provide for any fluctuation which may take place during the course of the financial year. That will he done again for the succeeding year, because circumstances which are stronger than men and stronger than Parliaments might occur which might greatly affect receipts in the Treasury. lam not making any excuse' or apology for the estimate being considerably beyond my forecast, as I was deliberately cutting the amount down for fear of eventualities I felt it was the only course for me to follow Mi the circumstances. I would call attention to the fact thai, the surplus shown by the year's figures is encouraging to all of us and to the country and it is a source of satisfaction to know we are not in the position of other countries which I need not name, which have not been so fortunate as to be in such a strong financial position The outline of the position which I have given is intended to take the place of the Budget which would come down in the ordinary session. It is an' interim statement but it is a fair account of what the position is. I sincerely hope that the circumstances of this country during the coming financial year may be ad satisfactory from the point of view of enabling the country to pay its way and maintain a strong position to the end of 1 the war."