THE FINANCIAL POSITION

Otago Witness, Issue 3339, 13 March 1918, Page 37

THE FINANCIAL POSITION

REVIEW BY MINISTER/ JSTO FURTHER INCREASE IN TAXATION NECESSARY. (Per United Press Association.) WELLINGTON, March 7.. Sir Joseph Ward made a statement this evening concerning the finances of the country. The revenue for the 11 months ended February 28, he said, shows an increase in seven departments of £3,036,115 over the corresponding period of last year. Six departments show decreases of £520,977, leaving a not increase Of £2,575,138. The increases are:— Stamp and death duty £ 45,663 Post and Telegraph 120,704 ! Land tax ....*. - 670,540 Income tax 1,937,865 Beer duty 41,801 Miscellaneous ... ... 205,120 National endowment revenue ... 14,522 ' The decreases are:— ' Customs 438,093 Railways 53,209 Registration fees 5,722 ' Marine 3,625 I Territorial 8,671 Minor receipts 10,656 As compared with the 12 months ended February 28, 1917, the revenue in the corresponding period endted February 28, 1918, shows an increase of £5,797,879. The decreases totalled £483,931. The increases were: Post and Telegraph £ 112,058 Land tax \ 668,559 Income tax ... 4,710,944 Beer duty ' 41,198 Miscellaneous 250,598 National endowment revenue ... 14,522 The decreases are:— Customs /. ... 390,467 Stamp and death duties 46,549 Railways _ 14,416 Registration fees - .'. ... 5,997 Marine ... 4,081 Territorial 11,784 Minor receipts • 10,637 That shows a net inore-ase of £5,313,948. The expenditure for the 11 months ended February 28, compared with the corresponding period of 1917, shows a net increase of ' £771,398. One of the chief items of increase is interest and sinking' fund. The increases in the several departments are: — Railways £208,533 Education ... 102,773 Post and Telegraph 46,858 Internal affairs 45,198 Agriculture 39,209 Financial ... .■: 24,812 Justice. 8,317 Defence I ••• 6,492 Legislative 6.693 Land and survey . 3,870 Publio buildings ■ 3,776 ' The total increase in the 11 departments of £496,536, added to the £372,988 increased interest and sinkage fund, gives a total increase of expenditure of £869,524. There were decreases in seven departments amounting to £98,126, which t deducted from the £869,524, gives a net increase in expenditure of £771,398. The decreases are: Under special A<*s £52,700 j Services not provided for ... 31,733 j Customs and marine 6,462 Mines 2,270 Civil list : . 2,293 | Labour •: 1,656 ' Native 332 The position of the Public Works Fund from April 1, 1917, to February 28, 1918, shows an expenditure under appropriations of £852,286, and there is a total of ways and means at February 28 of £287,862 to ; carry on public ' works expenditure until June 30 next. There have been decreases in expenditure on all branches of the Public Works Departments excepting three. . The decrease amounts to £250,302, and the increase to £25,288, leaving a net decrease of £225,012. The •■.xpenditure shows decreases as follows : Railways £117,622 Kcads and bridges 88,249 Departmental - ... 11,090 Public buildings 10,324 Contingent detence 4,309 , Irrigation, water supply 5,344 Plant, material, and stores 4,919 ; Development of mining 4,319 j Lighthouses, harbour works ... ... 1,055 Immigration , ... , 2,342 Miscellaneous 999 The increases are : Tourist and health resorts £439 Telegraph extension 21,735 This, in reality, is not an increase, as the amounts for expenditure under this head were previously provided for under a separate account. The full amount of income had not been brought to bear on February 28; consequently at the end of the year a still further increase from this source of revenue may be expected. A good idea of the operation of ■ both land tax and income tax revenue can be gathered from a comparison made for the 12 months ended February 28, 1918, with the similar , period of the .year previously. The total j increase for the period is £7,583,650. Comparisons for either of the periods show a ' larger amount than has previously been : produced in the history of the dominion. "From these two sources of revenue," said Sir Joseph Ward, "the increases which I have given in connection with the department was an indication ol what the finance of the country during the war period is. ' That is in connection with ordinary revenue I and expenditure, excepting tho Public Works Department. It shows clearly ! that there has been a careful j administration of the public works expondi- j tui-e, which has been essential, and tho ' work valuable in helping the oountry to I finance for war requirements, as obviously ! the less money that is drawn from the ] publio by that department a great amount will be available for assisting war loans, i which are imperative for the purposes of ; enabling the country to do its part in help- j ing U/ win tho war. There is still another j month of the present financial year to ] elapse, but I am warranted in saying now ! that the general position of the revenue at the end of tho year will be so satisfac- , tory that no further increase in taxation ; will be necessary during the year 1918-1919. I That, I feel sine, considering the enormous obligations that the expenditure involves, will be very gratifying tc people who are contributing money to war pur-

poses, and for the general services of the country. As Minister of Finance I feel very happy that this is so.