DOMINION FINANCE

Waipawa Mail, Volume LXVI, Issue 95, 18 May 1938, Page 3

DOMINION FINANCE

SURPLUS OF EIGHT HUNDRED THOUSAND INTERESTING COMPARISONS. WELLINGTON, Last night. ‘ ‘ I am more than gratified with the financial result for the ppst year, and it is satisfactory to kiiow that the Government has been able to give effect to its policy and at the same time to produce a surplus in the national accounts for the second complete year in succession,” said the Minister of Finance (the Hon. W. Nash), dealing with the public accounts in a speech at Lower Hutt on Monday evening. There was a surplus of £BIO,OOO and the Government had placed a further £854,000 to the reserves. Every penny outside the floating debt that was due had been repaid. Treasury bills to the trading banks due on April 16th, and amounting to £BOO,OOO, had also been met on the due date. “Comparisons between 1936-38 show the progress that has been made. The only increase in taxation has been the reintroduction of the graduated land tax and the alteration of the incidence of income tax.” Major comparisons showed the following increases: — Customs £2,600,000. Sales tax £1,000,000. Land tax £600,000. Income tax £4,500,000. Total £9,700,000. With minor increases on other items there was a total increase of £10,107,000. WHERE THE MONEY WENT. Mr Nash gave the following figures to show where the money had gone:— Debt charges £IOO,OOO. Reserves £BOO,OOO. Administration (general) £560,000. Finance £144,000. Justice and Police £235,000. Defence £590,000. Public Works maintenance £950,000. Development of primary and secondary industries £792,000. Health £520,000. Education £900,000. Pensions £2,700,000. Highways £730,000. Exchange £230,000. Total £9,251,000. Other minor items brought the total up to £9,360,000, which, with £BOO,OOO surplus, approximately accounted for an additional £10,000,000 in revenue. Some of the increase in expenditure items for the last year could further be analysed as follows: — Wheat subsidy £179,000. Milk in schools £76,000. Invadidity pensions £348,000. Old age pensions £819,000. Widows’ pensions £59,000. War veterans £50,000. War pensions £114,000.