I—B. 6.

8.—6

Sess. 11.—1891. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Supply, 16th June, 1891) BY THE COLONIAL TREASURER, THE HONOURABLE MR. BALLANCE.

Me. Peegeval,— In asking the attention of the Committee while I place before it a plain unvarnished statement of the finances of the colony, I hope to be as brief as the nature of the subject will permit, and not to weary honourable members by unnecessary detail. CONSOLIDATED FUND. EXPENDITURE FOE THE YeAB 1890-91 (OkDINAKY EIi!VENUE ACCOUNT). The estimated expenditure for the year 1890-91, including the Civil List and other Permanent Charges, amounted to ,64,125,502. The actual expenditure was £4,175,108. There were savings in some classes of expenditure and excesses in others, but the net result shows an excess of expenditure over the estimate of .£49,606. Details will be found in the annual Appropriation Account, and in the tables attached to this Statement. It is unnecessary for me to analyse and explain in detail these savings and excesses, but the Committee will expect me to at least indicate the larger items comprised in the excess, and to briefly explain their causes. "Under Special Acts" there is an excess of £19,140, arising out of the cost of two meetings of the General Assembly, and the extra amount of compensation paid in carrying out the retrenchment proposals of the present Government; there was also an excess of £14,659 in the amount paid to local bodies by way of subsidy on rates, the explanation in this case being that claims were more promptly sent in before the close of the year than were anticipated. In the Colonial Treasurer's Department there is an excess of £11,167, chiefly for discount on drafts, which was not provided for in the appropriations of the year : this large item was, no doubt, partly caused by the high average rate of interest ruling in London. In the " Working Kailways," the excess of £27,892 is explained by the Commissioners in a memorandum attached to their estimates, and which they state arose from the necessity of employing additional hands, from the rise in the cost of fuel and stocks at the time of the recent strike, and by increased traffic. Under the head of " Minister of Defence" the expenditure exceeded the votes by £14,712: the Committee will remember that £7,000 was taken off these votes in Supply, but no saving was effected'; of the excess, £3,000 was incurred through the labour troubles of last year. The other increases principally arise from the payment for arms and ammunition not sufficiently provided for in the votes. " Services not provided for" amounted to £10,410: a large amount of this represents compensation and compassionate allowances granted to officers and widows of men of the Defence and Police Departments which could not be paid under the provisions of the Civil Service Act.

Table No. 2. Expenditure 1890-91 out of ordinary revenue exceeds estimate by £49,606.