NO INCREASE OF TAXATION

New Zealand Times, Volume XLIII, Issue 10137, 27 November 1918, Page 6

NO INCREASE OF TAXATION

Loans for War Purposes and Public Works

Development of Hydro-Electric Power

Provision for Soldiers and Education

The Financial Statement for 1918-19 was brought down by the Right Hon. Sir Joseph Ward (.Minister for Finance) last night iu a somewhat thin House, a number of members being still absent through the influenza, while others were detained at their homes by sickness in their families. Tho galleries, which are usually crowded in every part on such an occasion, showed nothing but an array of empty benches, the Minister for Public Health having decided that, in view of the epidemic, tho galleries should all bo closed.

The honour, said Sir Joseph Ward, once again devolves upon me of laying before honourable members and before the people of New Zealand the financial position of the Dominion, and of suggesting to honourable members proposals for meeting ' the requirements of the Government during the momentous times through which we are passing. Prior to my departure for England I made a brief statement to the House regarding tho finances of the country; and it has been a matter of great satisfaction to me, on my return to New Zealand, to find that the financial condition stir 1 continues to be favourable, although the shortage of shipping and tho consequent dislocation of trade conditions caused by the war have had a marked effect upon the revenue. Prom the subjoined statements of receipts and expenditure it will be seen that the total revenue for the year ending March 31st, 1818, notwithstanding the unavoidable drop in collections through the Customs, showed a net increase of £1,838,674 over the figures for the previous year. The expenditure for the year 1917-13 also showed a considerable increase over the expenditure for tho year 1916-17, amounting to £1,061,517. The special items of increased expenditure will be.found under the headings of interest and sinking fund charges, old age pensions,' and war pensions. Tho increase in interest and sink-ing-fund charges is, of course, due to the unprecedented raising of loans for war purposes, and the increase in war pensions is a natural consequence of the continuance of the war. REVENUE AND EXPENDITURE. The ’ revenue and expenditure for the year 1917-18 as compared with the previous financial year are as follow: REVENUE.

ACCUMULATED SURPLUS. Before my departure for England I announced that the surplus for the year 1917-18 amounted to £5,085,934, -and I nowsupply the details showing how the surplus is arrived at. I may explain that the accumulated surpluses at the 31sf March, 1917, amounted to £6,474,854, and consequently, after adding the abovenamed surplus for 1917-18, it will be seen that the total surplus at the 31st March, 1918. amounted to £11,560,788. The surplus for the year 1917-18 is arrived at as follows: £ £ Revenue 20,206,221 Expenditure 15,130,287 Add surplus at the end of the financial year 1916-17 6,474,854 Total accumulated surplus 11,060,788 PUBLIC WORKS FUND. The following figures will serve ito show that, although expenditure upon public works has been very considerably curtailed during tho past year, essentia: services have still been provided for, and a total amount of £1,141,172 has been spent on these services. £ Balance brought forward on April Ist, 1917 521,525 Receipts. Loan money— £ Aid to Public Works and Land Settlement Act, 1914 45,100 Finance Act, 1916, section 49 700,000 Finance Act, 1917, section 77 125,000 Other receipts 45,086 1,-136,711 Expenditure. Under appropriation... 1,140,732 Other expenditure 440 Balance at March 31st, 1918 £295,539

Year ended Year ended March 31, March 31, 1918. 1917. Increase. £ £ £ Customs 3,364,308 3,849,675 •485,367 Stamp & death duties 1,892,014 1,699,035 192,979 Postal and telegraph ... 1,836,256 1,815,558 20,693 Land tax 1,385,703 713,118 672,590 Income tax ... 5,619,561 4,262,126 1.357.435 Beer duty 237,075 187,953 49,122 Railways 4,668,223 4,836,275 •168.052 Registration & other fees ... Marine 101,249 88,053 *6,795 *5,689 (Miscellaneous 718,437 518,063 200,374 Territorial National en205,613 215,787 *10,144 dowment revenue 100,493 85,971 14,522 Other receipts 39,201 32,200 7.001 Increase 2,514,721 Decrease 676,047 Totals ...20,206,221 18,367,517; 1,838,674 •Indicates a decrease. EXPENDITURE. Permanent Ap-pro-pnations— ■ £ £ Civil List 27,674 27,473 201 Interest and Sink ing x und 4.430,779 4,014,793 415,937 Under special Acts 621,258 988,301 •367,043 Subsidies paid to Local Authorities ... 139,213 130,716 8,497 Territorial Revenue Endowments 48,831 164,5-13 52,033 165,237 Old Age Penflions 612,464 453,085 159,379. Widows’ Pensions 57,931 37,918 20,013 Military Pensions 50,733 45.631 5,009 War Pensions 515,384 180,169 385,218 6,668,810 6,095,355 944,394 Annual Appropriations— Legislative Dopartments .. 41,797 34,939 6,858 Departments of i'inanco 132,896 106,722 26,174 Post and Telegraph Dept. 1,487,1 w 1,368,-190 118,055 Working Kailways Dept. 3,067,658 2.871.977 195,681 Public Buildings. Domains, and Maintenance of Roads ... 99,393 91,939 4,454 Native Department ... 24,242 24,191 51 Justice Department ... 485,428 459,914 25,514 limca Departmont 26,613 28,278 •1,665 Department of Inter na I Affairs 529,668 474,965 54,703 Defence Department ... 428,112 438,656 •10,514 Customs, Marine and In* speotion of Machinery Departments 163,304 169,865 *6,471 Department of Labour 30,716 32,7.5 11.SV-9 Departmen t of Land* and Survey 192,769 193,992 *323 Department of Agriculture, Industries, ft Commerce 224,565 216.897 7,663 Education Dopartment ... 1,511,256 1,466,264 104,932 Services not provided for 5,795 41,601 *35,800 8,451.477 7,963,415 544,750 Increase ... 1,189,1(1, ... 127.027 Total !5.l2'l.--:.r ;,'.;,5,V79 1,1.-91,517 “Indicates a doorcase