£14,000,000 AVAILABLE

Sun (Auckland), Volume II, Issue 531, 7 December 1928, Page 7

£14,000,000 AVAILABLE

UNEXHAUSTED BORROWING AUTHORITY NATIONAL FINANCES REVIEWED (THE SUN’S Parliamentary Reporter) WELLINGTON, Thursday. Showing an unexhausted borrowing authority of £14,214,230, revenue of £10,352,417 and expenditure of £12,664,379 a statement of the National accounts for the seven months ending October 31 was presented to the House of Representatives by the Minister of Finance, the Hon. W. Downie Stewart, to-day. , * The statement shows that the principal items of revenue were: Customs, £4,291,309; beer duty, £325,390; motor vehicles. £705,509; stamp and death duties, £ 1,590,257; income tax, £425,115; interest on public moneys, £327,787; interest on railways capital liability, £1,123,725; interest post and telegraph, £216,000; interest public debt redemption fund, £410,625. Against this expenditure is set down at £12,664,379, comprising permanent Charges, £8,378,668, and annual appropriations £4,285.711. Under public works there is a statement of expenditure for the seven months of £3,441,415, leaving a balance available for the rest of the year of £5,326,483. The ways and means account shows a balance at April of £2,220,815: new loans raised in seven months, £5,721,970; balance required to finance the expenditure programme, £ 550,030. The statement makes special reference to debt repayment, State Advances and farmers’ finance and maturing loans. Under this head it is stated that a third of the public debt will mature during this and the next two financial years. Summing' up, the Minister of Finance says; (1) We have in each year balanced our Budget, notwithstanding adverse trade conditions and the constant increase in the cost of social services. (2) In each year the net increase in the public debt has been reduced without curtailing the heavy programme of public works. (3) If the present policy is pursued we can, in a few years, carry out a reasonable programme of public works without any increase in the public debt. (4) The gradual contraction of loan expenditure and the balancing- of the Budget at a time when so many countries show an annual deficit has maintained the financial credit on a high basis, which enables us to obtain loan capital for developmental work on most favourable terms. (5) The public finances and credit of New Zealand are on a sound and healthy footing, and the future appears bright. The Railways Statement reviews the policy of the department since Mr. Coates took over. Mr. Coates reiterates his statement made to Sir James Gurson that it had been the intention to go on with the Morningside tunnel and deviation when the survey was complete. There is a note to the effect that up to the present £4,900,000 has been expended on workshops reorganisation, otherwise there is little new ground covered.