THE NATIONAL FINANCES.

New Zealand Herald, Volume LXI, Issue 18838, 13 October 1924, Page 6

THE NATIONAL FINANCES.

Retrogression to the extent of £130,000 is shown by the provisional statement of the Consolidated Fund transactions for the first half of the financial year. Revenue has been well maintained with an increase of £435,000, but expenditure has increased by £565,000. These movements are more satisfactory than the Budget forecasts, which, after allowing £1,000,000 for remissions of taxation, were of a decline in the whole year's revenue by £102,750 and an increase in expenditure by £1,357,000. Budget estimates have become so strongly conservative on both sides of the account that it is not surprising to find an increase in revenue instead of a contraction, while the expansion of expenditure is relatively less than the forecast. Last year the position at the end of six months proved to be a reliable indication of the improvement for the whole year, and if that experience is repeated, it may be anticipated that the next surplus will again be of substantial dimensions. It may be recalled that of the forecasted increase of expenditure, £1,357,000, no less than £1,155,525 was attributed to the railways and the post and telegraph services. On the other hand, debt charges were estimated at £140,000 lower than in 1923-24, so that the actual increase in the cost of government was not expected to be much more than £300,000. On present indications, it will apparently be even less than that figure.