PUBLIC FINANCES.

Otago Witness, Issue 3399, 7 May 1919, Page 37

PUBLIC FINANCES.

SURPLUS OF £3,678,773. EXPENDITURE INCREASING. GREATER PRODUCTION URGED. LONDON, May 3. Sir Joseph Ward -will return to Paris on Sunday. He announced that the Acting Finance Minister had cabled that New Zealand's balance of revenue over expenditure for the financial year just closed was £3,600,000. The'total surpluses of revenue over expenditure during the life of the National Government were over £15,000,000, which placed the dominion in the finest financial position.—A. and N.Z. Cable WELLINGTON, May 5. Dealing with Sir J. G. Ward's cabled statement Mr Myers (Acting Minister of Finance) said the figures were in substance correct, although the New Zealand accounts were still subject to a final examination by the Auditor-general. " It will be remembered," remarked Mr Myers, " that Sir Joseph Ward, when delivering his last Budget, stated that he anticipated a surplus at the end of the financial year of £178,965. However, the revenue for the past financial year was £22,352,372, being some £2,167,172 in excess of the estimate, and the expenditure during the same period was £18,673,599, being less than the estimate by £1,332,636. There is, consequently, a surplus on the year's operations of no less than £3,678,773. This, together with the accumulated surpluses since 1914-15, amounting to £11,560,790, makes an aggregate amount of £15,239,563 Available as the difference in revenue ovef expenditure for the past four years and-which represents some 25 per cent, of our war expenditure to March last. This amount is invested in short-dated securities'in London, and will be available for appropriation as may be ultimately decided. "Whilst the position of our-finances can only be considered as eminently satisfactory and indicative of prudent financial administration in a oountry that has shouldered to the full its monetary obligations during the whole period of the war now happily terminated by the victory of our arms, I would, nevertheless,, draw attention to the fact that there is still a large sum to be provided on account of the balance due to meet our direct war obligations, including gratuities to our soldiers, repatriation, and the settling of our returned men on land as well as in respect of pensions to our disabled warriors and the dependents of those who made the supreme sacrifice. In' comparing \he figures for the financial year just ended with those for the year 1917-18 an increase is disclosed in interest and sinking fund charges of £1,655,990, and in pensions of £803,000. The accounts showing the principal increases in expenditure are the railways, with an increase in expenditure of £347,937; post and telegraph, £212,556; mental hospitals, public health, etc., £93,107; education, £91,739. The pay, ment of war bonus to civil servants for the year under review is included in the figures given under the expenditure returns. The departments showing the principal increases of revenue are as follow: Income Tax, in which there is an increase of £599,775 during the vear; Customs, £466,373; Railways, £307,222; Miscellaneous, £228,232; Stamp and Death Duties, £232,758; Post and Telegraphs, £128,556; and Land Tax, £126,985." In conclusion, Mr Myers again emphaflised, in view of our heavy obligations,

the Vital necessity that existed for all classes of the community to take part in a united effort to increase production to the utmost extent, there being no guarantee that the abnormally high prices now being realised by all our staple products would be continued indefinitely. No country in the world, remarked Mr Myers, could "possibly possess capital other than that produced from day to day by its inhabitants, and therefore it could not too often be pointed out that it was the duty of each one of us to work and produce to the iullest extent of our powers.' The net annual liability for Avar pensions at March 31 last was £1,701,000, while the total payments for pensions, including that for war, old age, widows, Maori war, and miners, was over £2,000,000. By way of comparison Mr Myers stated that the gross pensions payable on account of the last four mentioned sections for the year ended March, 1914, were £473,300. The important question whether the present amount of taxation could be reduced or whether its incidence could in any way be altered would be dealt with by the Minister of Finance when he was presenting his next Budget to Parliament. ,