3

8.—6

Statement of the Revenue and Expenditure for the TWELVE Months ended 28th February, 1921.

REVENUE. The increase in Customs revenue is due largely to the fact that overseas manufacturers were able to fulfil outstanding and current orders with a rapidity which was not anticipated by importers, many of whom are now overstocked. It is therefore certain that imports will be greatly reduced during the coming year, and that the Customs revenue will be reduced in proportion. The Post and Telegraph and the Railway revenues show increases on account of the additional charges imposed in order to meet the payment of higher wages and bonuses arising out of the increased cost of living. EXPENDITURE. A close oversight has been maintained over the expenditure, which is within the appropriations, but with the prospect of reduced revenues it is necessary that the utmost economy should be practised in connection with all State activities and administration. ACCUMULATED SURPLUS. At the 31st March last the accumulated surplus amounted to £17,500,000, This surplus is being utilized for discharged soldiers settlement and other purposes for which loans would otherwise have been necessary. The public debt has thus been saved a very large increase and the taxpayer has been relieved of annual interest and sinking-fund charges which would amount to, roughly, £1,000,000 per annum. The allocation of the accumulated surplus in this manner also provides an investment which produces interest at the rate of 4 per cent, per annum. SURPLUS FOR CURRENT YEAR. I anticipate there will be a surplus at the 31st March next, but the excess Customs revenue will to a great extent account for this. It is certain that the Customs revenue will show a large drop next year. I propose to carry as much as possible of the surplus forward to assist in tiding over that portion of the year when even under normal conditions the expenditure usually largely exceeds the revenue.

Revenue. Amount. I __ Expenditure. Amount. 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.. £ 8,485,965 3,797,473 2,811,743 1,669,884 6,308,994 368,418 6,934.904 233,329 55,662 1,361,248 223,498 100,448 68.000 Permanent Charges— Civil List Interest and sinking fund Special Acts Annual Appropriations— Class Legislative ,, Finance „ Post and Telegraph ,, Railways ,, Public Buildings ,, Native ,, Justice „ Mines.. ,, Internal Affairs ,, Defence „ Customs and Marine ,, Labour „ Lands and Survey , Agriculture ,, Education Services not provided for £ 31,275 7,991,812 4,388,142 12,411,229 64,550 520,559 2,786,387 5,642,185 199,174 34,963 721,503 41,074 1,200,580 546,426 279,739 45,188 374,354 483,789 2,362,920 80,153 15.383,544 32,419,560 27,794,773