8.—6.

4

It is satisfactory to note that, in reviewing the differences between appropriations and actual expenditure over the last few years, the estimating by Departments, considering their more extended operations, is showing closer results. SUMMARY OF YEAR'S OPERATIONS. A surplus of revenue over expenditure is again shown on the operations for the year, viz.,— £ Revenue .. .. .. .. .. 24,725,762 Net expenditure .. .. .. .. 23,570,083 Leaving a surplus of .. .. .. £1,155,679 The following shows the result in the funds of the Ordinary Revenue Account at the end of the year : —- £ Balance forward, Ist April, 1925 .. .. .. .. 4,150,806 Add— Surplus, 1925-26 .. .. .. .. ..1,155,679 Reparation-moneys received from Germany .. ... 186,227 Balance of New Zealand Consols Account transferred .. 475,992 Special receipts .. .. .. .. .. 858 5,969,562 Less — £ Special payments .. .. .. .. 1,917 Transfers during the year, to — Public Works Fund .. .. .. 500,000 Working Railways Account .. .. 473,392 Loans Redemption Account .. .. 566,161 — 1,541,470 Balance, 31st March, 1926 .. .. £4,428,092 The balance was held as follows : — £ Cash .. .. .. .. .. .. 2,343,168 Imprests outstanding .. . . . . .. 226,350 Investments . . .. .. . . 1,858,574 £4,428,092 The transfer of £473,392 to the Working Railways Account, in terms of the Government Railways Amendment Act, 1925, to provide funds for working capital represents the balance of the excess of railway revenue paid to the Consolidated Fund from the Ist April, 1896, to the 31st March, 1925, after allowing the interest on capital at the policy rates. The total excess was £1,327,649, from which were deducted moneys paid out of the Consolidated Fund for railway stores and other charges outstanding at the latter date, totalling £854,257, leaving a balance of £473,392. The year's revenue has not been charged with this non-recurring expenditure, as the excess railway revenue in past years has helped to build up the accumulated surpluses of the Consolidated Fund, and the payment has been regarded as a refund therefrom. Of the £186,227 reparation-moneys received from Germany, £151,824 was included in the £566,161 transferred to Loans Redemption Account and has been applied in reduction of the war debt. The New Zealand Consols Act was repealed by section 11 of the Finance Act, 1925, and the £475,992 shown as transferred to Ordinary Revenue Account above represents the balance of cash and investments of that account, to which I will return later. Consols to the value of £475,492 were redeemed out of the Consolidated Fund during the preceding financial year, and the balance of £500 in 1925-26.

Summary of year's operations.

Transfer to Working Railways Account.

Reparation-moneys.

Transfer from New Zealand Consols Aecount.