DOMINION FINANCES

Otago Witness, Issue 3231, 16 February 1916, Page 9

DOMINION FINANCES

SATISFACTORY DISCLOSURES. ADDITIONAL. REVENUE. AN IMPROVED EXPENDITURE ACCOUNT. Particulars of the present financial position of the dominion, with respect to revenue and expenditure, were supplied to a Wellington Post reporter by the Minister of Finance (Sir Joseph Ward) on Friday evening, in amplification of the statement that the revenue lor the 10 months ended January 31 was better by £9'2A,ZbQ than the revenue for the corresponding 10 months of the preceding year. In all branches but three there were substantial increases. The increases were;—Customs, £41,546; stamp and death duties, £129,990; post and telegraph, £103,565; land tax, L'243,924; income tax, £206.799; beer duty, £11,393; railways, £166,795; registration and other fees, £4976; national endowment revenue, £13,885; other receipts, £7515. The increases total The decreases are: —Murine Department, £3663; miscellaneous, £31,628; territorial, £26,157. This g.ves a total decrease of £61,423, which, deducted from the increases, leaves a net increase of £924,260. A comparison between tho two years ending January 31, 1915, and January 31, 1916, showed that this year the total revenue amounted to £13,376,205, as against £12,469,712 for tho proceding year. The increases during the year ended January 31, 1916, totalled £1.055,301, while the decreases were £148,808 After deducting the decreases from the increases, an im provement for tho las.t 12 months was shown of £906,493. The usefulness of this comparison was that it covered a period of one year, and it gave an opportunity of showing that in the latter portions of the year ended January 31, 1916, the increases due principally to taxation were beginning to tell their tale. "it would bo safe to soy" added the Minister, "that an additional half-million in income tax had been paid into the public account since January 31, which cannot appear in tho Treasury Stab' rnent of revenue until February, as it in of course, impossible, when that amount has been paid practioally on tho last day of the month, to got it into the Treasury ac count for the end of that period. Therefore the ordinary cash account for consolidated revenue stands at considerably over £1,000.000 in credit practically to January 3L In round figures, £1,000.000 of Treasury bills have also been paid off. EXPENDITURE. In regard to the expenditure for the 10 months onded January 31, 1916, tho Minister

said it showed an excess over 1915 by £270,480. 'Die chief increases were in interest and sinking fund, railways, and educat.on. The interest and sinking fund must, of course, be expected to show an j increase over last year, on account of tho additional loans which had been raised. This item was responsible in round figures for £152,000 of the total increase of £270,480. j '1 he increase in the railway expenditure was £111,913. The difference, however, was more ' apparent than real, and is to a large extent accounted for by the fact that this year I expenditure has been brought to account in tho Treasury books more promptly than last year. The other large increase—£l22,6l7—in education, was chiefly due to the higher salary and allowance paid to teachers. Ho could not take exception to this, because, as a class, the teachers were certainly underpaid. NEED FUR RESTRICTIONS. " A comparison of the expenditure in January ot this year with that ol January j of last year," said Sir Joseph Ward, "shows an increase of £195,003. Oi this amount, Lho increase in railway expenditure amounts to £160,030. The total decreases amounted to £93,705, giving a net increase of £101,298 for the month. A total inciease in expenditure for tho 10 months of £270,480, of which amount £152,000 is represented by interest and sinking fund, points to a marked improvement, and is, so far, a source of gratification. Let tho fact remains that it is essential that, in times made prosperous --anomalous as it maybe to say so —by the effects of the war, the ordinary expenditure will require to be materially reduced, so as to make for the time when normal conditions arise after the completion of the war, to more than balance our revenue and expenditure. We cannot expect any decrease in interest and sinking fund charges. On tho contrary, we have to look forward to a considerable increase in them. But, on tho whole, there is room for congratulation upon the distinct improvement iu tho expenditure on the ordinary revenue account which has just taken place."

SOME DETAILS. REVENLE FOR JANUARY. Revenue for the month of January, 1916, compared with the month of January, 1915:

* Doorcase. REVENUE FOR TEN MONTHS. Revenue for the 10 months ended January 31, 1916, compared with the 10 months ended January 31, 1915:

1916. 1915. Inc. £ £ £ Customs 212,237 198,448 13,789 Stamp and _ death duties 119,163 105,653 13,510 Postal and telegraph 11.002 10,257 745 Land tax ... 31.697 130,165 *98.469 Income tax ... 272.372 53.893 218.479 Beer duty ... 11,558 8,633 2.92b Railways 310,40* 338,514 •23.110 Registration and oilier fees 11,695 10,723 972 Marine 2,933 3,052 •118 Miscellaneous 16,P63 10,718 6,150 Territorial ... 10,399 11,537 *1,138 Other receipts. 6 — 6 £1,010,334 £881,594 Net increase £128,740

1916. 1915. Inc. £ £ £ Oustorri3 2,667,544 2,625,998 41,546 Stamp and death duties 1.086,532 956,542 129,990 Postal and tele graph 1,127,311 1,023,746 103,565 Land tax ... 1,011,822 767.898 243.924 Income tax ... 334.727 72.923 261,799 Beer duty ... 115,069 103,176 11,893 Railways ••• 3,394,179 3.227,334 166,795 Registration fees, etc. ... 80,763 75,792 4.976 Marino 36,785 40,448 *3,663 Miscellaneous 257,189 288,817 *31,628 Territorial ... 135,026 161,163 *26,137 National Endowment ... 92,655 78,770 13,885 Other receipts 12,073 4,758 7,315 £10,351,6:0 £9,427,420 Net increase £924,266 " Decrease.