POINTS FROM THE BUDGET

Stratford Evening Post, Volume I, Issue 198, 31 July 1931, Page 4

POINTS FROM THE BUDGET

The largest single item in the State expenditure was debt charges, amounting to £10,952,505. A substantial part of this amount, however, namely, £1,638,672, was on account of debt repayment, which must be regarded as an investment rather than an expense.

The most recent statistics available indicate that the proportion of unemployed to the total population is substantially lower in New Zealand than obtains in most countries overseas, but while this is so the Government considers the matter to he of such vital import as to justify the adoption of special measures in order to meet the position. ♦ * * The Government rate of 5J per cent, for over-counter sales of inscribed stock or debentures maturing September 1, 1937, will be reduced to 5 per cent. The present issue of Rural Advances bonds will be closed and replaced by a new issue of 5 per cent, bonds at par, to mature on September 15, 1947. In regard to the investment certificates on sale at the post offices, it has been decided to reduce the return on two-year currency certificates to 42 per cent., and on five- 1 year certificates to 5 per cent. No further issues will be made of one-j year certificates after July 31. * * * The Public Trustee will reduce by 3 per cent, the rate to be paid for new deposits by way of investment agencies in the common fund for a fixed term of years, and in addition will pass on to his clients the benefits accruing from such new deposits. * * * Expenditure on agriculture accounted for a total of £418,913, approximately half of which was in respect of subsidies and grants of various descriptions. • *' * Pensions normally show an increase but this year, owing to economic stress, it is anticipated that the increase will be larger than usual. 'Oldage pensions is the principal item concerned, but fairly substantial increases are also expected for family allowances and war pensions. The total increase for pensions is set down at approximately £200,000, while other permanent appropriations involve a net increase of £75,000.

Although imports for last financial year showed a decline of 20 per cent, compared with the previous year, the total for this year is likely to be several million less than for last year. The Customs revenue will be lowered proportionately to an even greater

extent as, in times like the present, the falling-off in imports is always heaviest in luxury lines where, generally speaking, the rates of duty are highest. Forecasting this, our largest item of revenue, is always a diflicult matter, and the difficulties are greatly accentuated under present conditions; but, having regard to all the circumstances, it is considered that on the present tariff the receipts would be £1,100,000 less than for last year, or a falling-off of approximately £2,030,000, compared to the amount budgeted for last year. The last figure is the measure of the shortage that has to be provided for to obtain a balanced budget for this year, for, as previously explained, the total revenue received last year was insufficient to the extent of £1,039,000. * * * The Defence expenditure involved £229,051 in respect of land defence, £543,845 for naval defence, and - £48,748 for air defence. Expenditure on defence generally was rigorously curtailed during the year, principally in connection with the suspension of compulsory military training, but the full effect of the savings will not be felt until the current financial year. ♦ * * In regard to bread, I have previously announced the intention of the Government to submit to the House proposals for a reduction of the duty on wheat and flour. An undertaking has been given by the Government that no alteration will be made in the duties until the crop harvested this year has been marketed, b,ut it is intended as from early next year to make substantial reductions in the duty on both wheat and flour. These reductions, while still giving the wheat grower reasonable protection, w*- enable substantial reductions to be made in the retail price of flour and bread, and will assist the poultryfarmer and other users of wheat. Beer duty reflected the shrinkage in the purchasing power of the people by falling short of last year’s estimate by £40,000, and it is estimated that this year will show a further falling off amounting to about £75,000. ♦ * • Expenditure under the heading of “Highways and Roads” comprises £757,906 on main highways and £1,583,996' on roads. Compared with the previous year, the latter amount represents an increase of £392,927 in expenditure on ordinary settlement and backblock roads, as ft result of the necessity of finding useful work for many of the unemployed.