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Session TT. 1918. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Supply, 26th November, 1918) BY THE RIGHT HONOURABLE SIR JOSEPH WARD, BART., P.C., K.C.M.G., MINISTER OF FINANCE.

Mr. Malcolm, — The honour once again devolves upon me of laying before honourable members and before the people of New Zealand the financial position of the Dominion, and of suggesting to honourable members proposals for meeting the requirements of the Government during the momentous times through which we are passing. It will be within the recollection of honourable members that prior to my departure for England I made a brief statement to the House regarding the finances of the country ; and it has been a matter of great satisfaction to me, on my return to New Zealand, to find that the financial condition still continues to be favourable, although the shortage of shipping and the consequent dislocation of trade conditions caused by the war have had a marked effect upon the revenue. From the subjoined statements of receipts and expenditure it will be seen that the total revenue for the year ending 31st March, 1918, notwithstanding the unavoidable drop in collections through the Customs, showed a net increase of £1,838,674 over the figures for the previous year. The expenditure for the year 1917-18 also showed a considerable increase over the expenditure for the year 1916-17, amounting to £1,061,517. The special items of increased expenditure will be found under the headings of Interest and Sinking Fund Charges, Old-age Pensions, and War Pensions. The increase in interest and sinking-fund charges is, of course, due to the unprecedented raising of loans for war purposes, and the ''increase in war pensions is a natural consequence of the continuance of the war. REVENUE AND EXPENDITURE. The revenue and expenditure for the year 1917 IS as compared with the previous financial year are as follow : —

Revenue for the Year ended 31st March, 1918, compared with the Year ended 31st March, 1917.

i—B. 6.

Year ended Year ended 31st March, 31st March, Increase. Decrease. 1918. 1917. Customs Stamp and death duties Postal and telegraph Land-tax Income-tax Beer duty Railways Registration and other fees Marine Miscellaneous Territorial National-endowment revenue . . Other receipts £ £ £ £ 3,364,308 3,849,675 .. 485.367 1,892,014 1,699,035 192,979 .. ; 1,836,256 1,815,558 20,698 .. I 1,385,708 713,118 672,590 5,619,561 4,262,126 1,357,435 237,075 187,953 49,122 4,668,223 4,836,275 .. 168,052 101,249 j 108,044 .. 6,795 38,053 43,742 .. 5,689 718,437 518,063 200,374 205,643 , 215,787 .. 10,1/14 100,493 85,971 1.4,522 39,201 32,200 7,001 2,514,721 '' 676,047 676,047 I Totals .. 20,206,221 18,367,547 1,838,674