PUBLIC FINANCES

Otago Witness, Issue 3335, 13 February 1918, Page 7

PUBLIC FINANCES

REVENUE AND EXPENDITURE. REVIEW BY SIR JOSEPH WARD. WELLINGTON, February 6. Sir Joseph Ward (Minister of Finance) stated to-day that the revenue for Jan wiry had como up very well indeed, and showed an increase of £555,541 over the revenue for January, 1917. Practically every branch of tho revenue showed an increase.- Tho receipts for tho ten months ended January 31, 1918, showed a total of £11,810,524, and were in excess of tho corresponding ten months of tho previous year by £719,565. This increase of revenue was very 'satisfactory, in view of tho fact that Customs showed a falling off of £444,751 and Railways £166,042 for that period. The total expenditure for the ten. months ending Jantrary 31, 1918, exceeded that for tho ton months ending January 31, 1917, by £403,603. Tho chief increases in expenditure were to be found under tho headings of Post and Telegraph, Railways, Agriculture, and Eduoation. Tho increase of revenue of tho various departments for tho ten months were: Stamp and death duties " ...£20,841 Post and Telegraphs 81,862 Land tax 650,377 Incomo tax 325,905 Beer duty ........ ■ 35,204 Miscellaneous 197,816 National endowment reveriuo ... 14.522 Other receipts 18,441 Total ...£1,354,968 The decreases were : Customs £444,751 Railways 166,042 Registration and other fees 8,987 Marino 4,403 Territorial 11,220 Total £635,403 Doducted from the increases, this left an increase of £719,565. Tho increases of expenditure were: Civil lists £ 58 Interest and Sinking Fund 52,835 Legislative 3,786 Finance Department 8,623 Post and Telegraphs 79,282 Railways _ 168,393 Public buildings ... 6,133 Justice 606 Internal Affairs ' 3,936 Agriculture 96,374 Eduoation 85,088 Total ... ■'..-. £507,824 The decreases were : Under special Acts ... £54,157 Native Department 261 Mines 2,615 Defence ... ..'. 10,314 Customs and marine 6,906 Labour 2,227 Lands and survey 2,278 Services not provided for 25,463 Total .!. ...£104,221 This, deducted from the increase, left a net increase of expenditure of £403,603. There are no Treasury bills outstanding, whereas at the same'period last year there was £300,000. ■ A comparison of the full 12 months dating from January 31, 1917, to January 31, 1918, shows that the increases of revenue in all amounted ta £4,494,046 and the decreases of revenue to £657 350, the not increase of revenue for the 12 months ended January 31, 1918, as against the previous 12 months being £3,836,696. The main items responsible for those large increases are: — Income tax (increase) ..£3,425,456 Land tax 647,531 Sir Joseph Ward added: "That is an increase of ever four millions of revenue under these two heads. The total amount of land tax received for the year ended January 31, 1918, was £1,373,496, and income tax £4,588,031—a total of £5,961,527 from these two branches of revenue. . " With reference to the public works expenditure from April 1, 1917, to January 31, 1918, the expenditure under appropriations amounts to £802,912, and under special Acts to £44o—a total of £803,352,—and the balance available for expenditure on January 31, 1918, was £336,393. There has been a decrease of expenditure out of the Public Works Fund in all branches of the service excepting three. The decreases arc: —Departmental, £9536; railways, £85,753; public buildings, £8277; lighthouses and harbour works, £1242; immigration, £623; roads and bridges, etc., £84,642; development of mining, £3981; contingent„_dcfence, £4518; immigration and water supply, £4196; plant, material, and stores, £3072: unauthorised, £lO44 ;—total, £206,884. The . increases were:—Tourist and health resorts, £59; lands improvement, £2829: telegraph extension, £25,294;—t0ta1, £28,182. This amount of telegraph extension is in reality not an increase as far as tho Public Works Fund is concerned, as it was previously provided for under a separate Act. While the item appears as an increase in tho Public Works Fund* it is really a transfer under the Act to that department." A GENERAL REVIEW.Speaking on the financial position generally. Sir Joseph Ward said that as practically the whole of the income tax, in addition to that already paid, was payable .this month, there would 'be' a substantial surplus on March 31 next. It had to. be remembered in connection with the expenditure side, which had gone up considerably, that it was due very largely to. the conditions brought about "by the war. The total amount of interest and sinking fund paid for the 10 months ended January 31 amounted to £3,367,730, which was an . increase of £52,835 over the previous year, and considerable increases under this head had to be looked for. Tho expenses of running practically all the departments of tho State owing to tho war had materially increased, and in that respect so far as the war affected them necessarily wero abnormal, but looking at th© whole matter impartially it was clear that the financial position of the country was. uncommonly strong, and It was very gratifying and reassuring to tho country as a whole that it was so.