PUBLC ACCOUNTS.

Timaru Herald, Volume CXXV, Issue 17944, 1 May 1928, Page 5

PUBLC ACCOUNTS.

SMALLER SURPLUS THIS YEAR (Special to the “Herald.”) - CAMBRIDGE, April 30. In the cotii'se of, an address this evening, the -Minister of Tinauee (the Hon. W. Downie Stewart) said he was if 1 _a> position -to 'announce some preliminary tigures of, the public finance for the financial .year ending on 3Jst. March last, whicli indicate 'that the year closed' with, a surplus of approximately £180;000.. The previous year closed with an adverse trade balance, ilnetuating prices, and business, somewhat stagnant.. These conditions reflected tnemselves to spine extent in the Government finance. HoiTVver, the extraordinary, power of recovery which the nonunion-had so frequently manifested had been m evidence'during the pasr year, and. a steady improvement was still taking place. The pet'rol tax and tyre tax,' etc!,'.'for '• Highways was passed through the Consolidated Fund. Ignoring these) nominal increases ,on both sides of the account, the year’s revenue amounted to appj-oximate'y £24,760,000, / which, compared to . the Budget estimate, of £2),075)000,’ -gives an excess of £85,000. The expenditure on the same basis amounted to approximately £24,580,000, which; is £95,000 less than the Budget estimate. Prom the'budgeting point of view, these results. must be considered very satisfactory, the variation from the estimate in both revenue and expenditure being less than one-half per cent. This was probably as close estimating as it was possible to get in dealing with about .£25,000,000.a year, !. “The revenue for the year, ignoring the nominal additions'already referred to,” Mr Stewart proceeded to siiy, “was approximately £190,000 less than for the previous year’, but as indicated, above, the receipts slightly exceeded the estimate. 'Turning to the details | of the r evenue; the'income tax fell short of the estimato by £150,000. When tlie. income tax revision was made last year; the 7 statement was widely circulated that the revision would bring in an extra £OOO,OOO. But as he ;had pointed out at the time, this statement was based on an erroneous scries-of calculations, and the result confirmed the Departmental estimate. The land tax also fell below the estimate to the extent of £50,000. This fall iii income tax and hind tax, lv>-.-ovor,. was largely counterbalanced by Customs ditties, which exceeded the estimate bv £1.70,000. The-other main item of taxation—Stamp and Death Duties; —also exceeded the estimate, the excess being about £IOO,OOO. “The expenditure for file year, again ignoring nominal additions, was £230,000 in 'excess' of the previous year, but in this connection it has to be remembered that the year’s expenditure includes, among other items, the first- instalment of £125,000 lor the Singapore Base. £50,000 increased pensions and £70,000 additional Hospital, subsidies. The position in regard to Departmental expenditure included in the Annual Appropriations is partic-ui- | arly gratifying'. Rigid control throughout the year has resulted in the expenditure being £210.000 below the appropriations and £25.000 below the | previous year’s expenditure. Increases! in expenditure compared lo the previ- ' ous year were Scientific and Industrial Research £40.000, Education £20,000, . AoTiculture £43,000. Lands and Sur- I vey and Prisons both £17,000. lie- | creases were: Post and Telegraph working expenses £46,000, Internal Affairs £52,000, and Naval Defence £40.000. “Both the revenue and expenditure figures show.” the Minister proceeded to explain, “that, the estimates as framed last year came e'oser to the actual results than for any year since the pre-war period. This indicates that wc are now getting back to more normal conditions of finance, free from

the fluctuations caused by the war. The fact that we take every precaution to keep our expenditure below our income has a very real bearing on our financial standing in London, and only last year the “Financial News” of London, said: ‘Those who have knowledge of the financial administration of the Dominion are well aware of the excellent conservative principles that have always governed the actions of •the New Zealand Treasury; actually there is no Dominion who has been more scrupulously careful over her finances than New Zealand.’ ”