OUR FINANCES.

Waipawa Mail, Volume XXXVII, Issue 8362, 28 July 1920, Page 3

OUR FINANCES.

SURPLUS OF OVER TWO MILLIONS.

NATIONAL DEBT MOUNTING UP.

The Hon. W. F. Massey, as Minister of Finance, in the House last evening, delivered his Financial Statement, in the course of which he said:— The total revenues of the Consolidated Fund for the financial year 1919-20 amounted to £26,081,340, whilst the expenditure for the same period totalled £23,781,924, the excess of revenue over expenditure thus being £2,299,416. This result of the year’s operations is eminently satisfactory, and furnishes ample evidence of a sound financial position. The effect of the disturbing influences of the war has not been felt so severely in New Zealand as in other countries. There is no lack of employment:, trade is generally good, and prices for our stable products are satisfactory. Although sea transport was restricted, the Government suedeeded in making arrangements which permitted the export during the year of large quantities of our meat and other produce at remunerative rales, thus enabling the country to meet, without any great inconvenience, the additional taxation necessitated by the war. The revenue for the year was estimated at £22,919,165, but the amount collected was £26,081,340, being £3,162,175 in excess of the estimate, or £3,728,968 over the revenue of the previous financial year. The. surplus for the year is arrived at as follows: £ Revenue 26,081,340 Expenditure 23,781,924 2,299,416 Add accumulated surplus at end of the financial year 1918-19 15,239,561 Tl. accumulated surplus £17,539,977 The expenditure upon public works amounted to £2,021,153, or £813,232 ox er the expenditure of the year 191819, leaving a balance of £219,502. PUBLIC DEBT. At the 31st March, 1914, the gross debt stood at £99,730,427, or a gross indebtedness per head of tlie European population of £9llos 2d. At the end of the financial year 1919-20 the gross debt amounted to £201,170,755, against xvhich sinking funds amounting to £7,257,564 were held, leaving a net indebtedness per. head of £165 3s. It is true that there has been a large incease in the amount of the public debt since 31st March, 1914, but we have the satisfaction of knowing- that the greater proportion of the nexv money was raised in the Dominion, and that consequently the interest thereon is circulated locally to the benefit of our own people. We owe the principal to ourselves, and it will be a good thing if in future the money xvhich xve require for public purposes can be raised in the same way, even if xve have to pay a slightly higher rate of interest. From the folloxving summary of the additions to the public debt it xvill he seen that the whole increase is not due to the xvar, as the ordinary activities upon xvhich loan moneys are expended did not entirely cease during the xvar period, and money had to be obtained by the Treasury for carrying on local development to a limited extent: — £ War E:menses 80,089,025 Public Works 9,155,030 Railways Improvement 665,000 Discharged Soldiers’ Settlement 9,345,000 Land for Settlements .. 3,385,000 Native Land Settlement 1,421,700 Redemptions 3,250,000 Other Purposes 1,068,260 Total £108,379,015 LOANS. 11l response to a fairly constant demand for investment at 5 per cent, of sums in excess of the limit of £SOO imposed in connection with the issue of Post Office 5 per cent, inscribed .stock, I decided to make available to the public securities to the extent of £2,000,000, with a currency of ten years, bearing interest at 5 per cent., which is not free of income tax. The money so raised is to be applied for public works purposes, including railways improvements and hydroelectric supply. The amounts required to be raised by way of loan during tli* twelve months commencing Ist July, 1920, arc as follows: —Discharged Soldiers ’ Settlement Account £5,000,000, Land for Settlements Account (on account

of discharged soldiers) £2,500,000, Public Works Fund £3,000,000, Electric Supply Account £650,000, Education Loans Account £500,000, Housing Account £1,000,000, Railways Improvement Authorisation Act Account £450,000, Nauru and Ocean Islands Account £600,000. Total, £13,700,000.

In addition to the above the Treasury will be required to provide approximately £1,000,000 for other developmental services and State activities, and, as previously pointed out £10,105,457 for loans falling due.