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Complete results for 1944-45 are not yet available, but to the extent that such information is to hand —namely, in respect of "salaries and wages" and " social security benefits and pensions," record totals have been reached. The foregoing statistics are co-ordinated with those of total production as follows: — Total Aggregate Estimated Value Private Income. of Production. £(m.) £(m.) 1935-36 .. .. 124-6 113-8 1939-40 .. .. 200-2 144-8 1942-43 .. .. 264-4 169-8 1943-44 .. ..292-3 The value of production for 1943-44 is not yet available, but the very satisfactory trend is shown by the foregoing results. To complete this broad outline, reference must be made to the Government's policy in the field of finance, which is a most important factor in assisting a country's war effort. The following is a summary of our War Expenses Account since the outbreak of war to the 31st March, 1945 : — War Expenses Account to 31st March, 1945 Receipts £(000) £(000) Expenditure £(000) £(000) War loans raised .. .. 258,220 War and other stores .. 165,135 Less repayments from War Pay and allowances .. 140,968 Expenses Account .. 27,706 Accommodation, food, and 230,514 clothing .. .. 31,629 War taxation .. .. .. 173,597 Land, buildings, and ships .. 31,233 Transfers from Consolidated Fund .. 26,586 Repairs, maintenance, and rent 6,459 Reciprocal aid .. .. .. 83,837 Medical services .. .. 2,587 Disposal of surplus assets .. .. 3,479 Educational services .. 162 Miscellaneous receipts .. .. 6,901 Transport.. .. .. 18,558 Miscellaneous non-effective services .. .. .. 2,981 Miscellaneous effective services 14,773 Total expenditure by Army, Navy, and Air .. .. 414,485 Ancillary .. .. .. .. 32,491 Reciprocal aid : Reverse lend-lease .. 58,174 Rehabilitation .. .. .. 1,862 Total expenditure . .. .. 507,012 Balances on hand .. .. .. 17,902 £524,914 £524,914 New Zealand's total war expenditure to 31st March last amounts to no less than £507,000,000. No mean achievement for a population of only one million and three-quarters. Of this total expenditure only 43 per cent, remains outstanding in the form of war loans, as, after allowing for redemptions from other sources, we are left with an increase in the public debt on account of war of £218,750,000. Lend-lease assistance from the United States of America, totals nearly £84,000,000, as against reciprocal aid, which we have supplied to their Forces totalling over £58,000,000, without taking into account the fact that, in general, our price-level is substantially less than that at which lend-lease goods have been supplied to us. It will be recalled that in the Government's first war Budget a definite war finance policy was enunciated in the following words : — "It is infinitely better for everybody that the measure of the sacrifice required from .each and every one to carry on the war should be made out of our current income either by way of taxation or by savings . . . The Government's policy for financing the national effort on the war front and the home front may be concisely stated as to tax to the economic limit for war purposes and borrow for essential productive works and for any balance of war requirements." The foregoing statement of the War Expenses Account to 31st March, 1945, is a striking testimony of the success which the Government have achieved in adhering to the policy thus laid down.

War Expenses Account, 1939-45.

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