NEW ZEALAND’S FINANCE

New Zealand Times, Volume LII, Issue 12199, 25 July 1925, Page 5

NEW ZEALAND’S FINANCE

HON. W. NOSWORTHY DELIVERS HIS BUDGET SURPLUS OF NEARLY ONE-AND-A-QUARTER MILLION* MAIN CREDIT GIVEN TO LATE MR MASSEY The Hon. W. Nosworthy, Minister for Finance, read in the House of Representatives last night the Financial Statement for ) the year not long closed. He described the position of country as satisfactory, there being a surplus of £1,243,800, and / gave the credit far this to the late Mr Massey, who, despite the risk of unpopularity, held to a sound policy, and achieved good results, even though remissions in taxation and charges were made to the annual value of £3,750,000.

The Budget deals first with the Consolidated Fund, saying:—“The total revenue received was £28,643,000. After deducting £883,000, the estimated value of concessions granted during 1924, the estimate was £27,974)620. The amount actually received was thus £668,380 in excess of the estimate, and when compared with £27,960,370, the revenue for 1923-24, shows an increase of £682,630. The Customs revenue accounted for an increase of £331,174 over the previous year, the result of heavier imports. There is a comparative increase of £542,228 in interest on pnblic moneys, but this is due to the payment of Interest by the Disoharged Soldiers’ Settlement Account for 1924-25, whereas in 1923-24 the amount was untilised for discharged-soldier housing. The outstanding interest for 1923-24 is meantime treated as a liability of the account.

EXPENDITURE Tho year’s expenditure was £27,399,. 200, being £867,271 less than the amount appropriated, but £1,251,195 over the actual expenditure of 1923-24. It was expected that owing to the regrading of the public service, railway employees, and teachers during 1924, the departmental chargee would be higher, and of the increase of £1,063," 000 under this heading £672,000 is ah tributable to these causes, while old age pensions and widows' pensions in creased by £69,000, and hospital subsidies by £149,000. The methods of check on expenditure which have been applied since 1921 are still operating, and the saving of £867,271 on the appropriations serves to indicate the continued exercise of economy by departments.

The other principal increases over the previous year are:—Railways, £150,637; Post and Telegraph, £25,642; departmental and other receipts, £119,103; and miscellaneous, £110,172.

The principal increases in expenditure compared with 1923-24 v, y i-es— Under special Acts (mainly on account of hospital subsidies under the new legislation of 1923), £206,309; Railways, £483,442: Post and Telegraph, £295,484; Education, £1«1,763; Health, £36,966; Department of Agriculture, £55,568; Industries and Commerce (due to Exhibition grants and expenses), £52,343; Customs (principally due to transfer of tyre tax to Main Highways Account), £50,619.

There was a decrease of £395,480 in inoome tax and £91,211 in land tax compared with the previous year; but, as the remissions granted in the 1924 .session were estimated at £718,000, the loss is much leiss than anticipated, the recoveries of outstanding tax being a substantial set-off. , ""

Other decreases were —stamp and death duties, £103,449; registration and other fees, £25,975; and territorial revenue, £10,629.

There were decreases, in:—lnternal Affairs £44,541; maintenance of roads, £28,821; services not provided for, £166,867.