8.—6.

In so far as the finances of the Consolidated Fund for the present year are concerned it is anticipated that there will be a substantial fall in revenue from Customs, sales tax, and, for obvious reasons, from the petrol tax a total reduction of £3,000,000 being allowed for. As regards expenditure, the estimates are being compiled on the basis of balancing the Budget within the reduced revenue available. Debt charges, however, will require an increased provision of £1,700,000, but savings in exchange charges (£800,000), highways expenditure (£400,000), and annual votes (£2,000,000) will more than offset this increase even after £700,000 has been allowed for an increased cost-of-living boniis to State employees. Thus on balance the anticipated reduction of £3,000,000 in revenue is, after allowing for the 1941-42 surplus of £1,500,000, offset by net reductions of £1,500,000 in the expenditure. The Consolidated Fund Budget for this year may be summarized approximately as follows:- — Revenue. Taxation— £ Customs . . • • • • 6,700,000 Beer duty .. • . • • 1,500,000 Sales tax . . . . • • 3,200,000 Highways . . . • • • 1,800,000 Stamp duties . . . • • ■ 1,600,000 Land-tax . . . . • ■ 1,000,000 Income-tax (including excess profits tax). . . . • . 16,500,000 Miscellaneous . . . . • • 210,000 32,510,000 Interest recoveries from trading activities, &c. .. .. • • 3,226,000 Other receipts .. • • • ■ 2,450,000 5,676,000 £38,186,000 Expenditure. Permanent appropriations (including £ transfer of £1,500,000 to War Expenses Account) • ■ • • 18,200,000 Annual votes .. • • ■ • 19,726,000 37,926,000 Supplementary Estimates and contingencies .. • • • • 260,000 £38,186,000 For the Social Security Fund the revenue is estimated to be much the same as for last financial year,'in total about £14,500,000, including for each year a transfer of £3,600,000 from the Consolidated Fund. Expenditure, on the other hand, is estimated to show an increase of £2,400,000, mainly on account of hospital and medical services and provision for a 5-per-cent. cost-of-living bonus on age, widows', invalids', miners', orphans', and Maori war benefits,_ and also on war veterans' allowances. An equivalent bonus will be given to economic pensioners. The estimated cost of these bonuses which will date from Ist May, is £550,000 per annum. The balance in the account at 31st March last was approximately £3,000,000, so this additional expenditure can be met out of the present reserves of the account. As a cost-of-living bonus it is also proposed to increase the domestic allowance payable to wives of all men in the armed forces with one or more children. This allowance at the rate of Is. a day was granted last year to

Consolidated Fund Budget, 1942-43.

Social Security Fund: Estimate for 1942—43.

Cost-of-living bonus.

Increased domestic allowance.

2