8.—6

The additional expenditure on pensions is mostly on account of old-age and widows' pensions, which must be expected to increase. The increase shown for maintenance of war graves and memorials overseas is largely nominal, as in the previous year £32,775 was provided out of vote " Internal Affairs " under annual appropriations for this purpose. Annual Appropriations. The net expenditure under annual appropriations amounted to £10,091,020. an increase over that of the previous year of only £107,8(55, or 1-08 per cent. The increase in some votes cannot be avoided, but the figures for the last financial year clearly demonstrate that economy and close control of expenditure were exercised throughout the year. The Education vote showed an increase of £99,878, being the normal increase due to growth of population. The cost of naval defence went up by £85,820, the reason being that the previous year's expenditure included the cost of the second cruiser for only part of a year. These and other smaller increases as set out in Table No. 7 attached to this Statement are partly offset by decreases as follows : — £ Post and Telegraph working-expenses .. . . 63,353 Industries and Commerce . . . . . . 56,592 Electoral Department .. .. .. .. 91,410 During 1925-26 the Dunedin Exhibition increased the vote for Industries and Commerce, while the last election accounted for the heavy expenditure for electoral purposes in the same year. SUMMARY OF YEAR'S OPERATIONS. The transactions for the year resulted in a surplus, viz.:— Revenue. £ £ Revenue (proper) .. .. .. .. .. 24.313,982 Departmental receipts .. .. ~ .. 576,201 Recoveries on account of expenditure of previous years 52,924 Income for year .. . . .. 24, 943,107 Expenditure. £ Permanent appropriations .. .. 16,488,004 Less credits-in-reduction .. .. 2,223,059 14,264,945 Annual appropriations .. .. .. 11,885,368 Less credits-in-aid .. .. .. 1,794,348 — 10,091,020 Net expenditure chargeable to year's income 24, 355, 965 Surplus .. .. .. .. £587,142 The following shows the result in the funds of the Ordinary Revenue Account at the end of the vear : — £ Balance forward, Ist April, 1926 .. .. .. .. 4,428,092 Add— Surplus, 1926-27 .. .. .. .. .. 587,142 Certain reparation-moneys received from Germany .. 39,307 Refund from Cheviot Estate Account in respect of securities redeemed in 1925-26 .. .. .. .. 50,400 5,104,941

Pensions.

War graves.

Annual appropriations.

Year's operations.

Special items.

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