B—6;

Expenditure Permanent Appropriations— £(000) £(000) £(000) Debt services— Interest and management .. .. .. 18,153 Repayment .. .. .. .. .. 4,249 22,402 Other special Acts .. .. .. .. .. .. 2,985 25,387 Annual votes — Social Services .. .. .. .. .. .. 34,737 Reinstated vote for Navy .. .. .. .. .. 1,200 ■ Reinstated vote for Army .. .. .. .. 2,862 i Reinstated vote for Air .. .. ■.. .. .. 3,833 New vote for stabilization .. .. .. .. ..13,789 Other votes .. .. .. .. .. .. 17,657 74,078 99,465 Supplementary estimates and contingencies .. .. .. .. 917 £100,382 Receipts — 1 Commenting briefly on the major items, Customs duty, beer duty, and sales tax continue to increase, and I have allowed for this in the current year's revenue estimates. Highways revenue also is brought in at a higher figure due to anticipated increased consumption of petrol. Stamp duty, which last year was approximately £500,000 over the estimate, due mainly to increased receipts from racing taxation, is shown at a slightly increased figure. The incometax figure takes into account the upward trend that has been evident for many years, but due consideration has been given to the taperingoff of the rate of increase. The reduction due to the increased wife's exemption has been allowed for, as well as the new tax reductions which I will outline in a few moments. The remaining heading of taxation requiring any comment is the national security tax. Last year this was at the rate of Is. 6d. in the £1 and produced £21,738,000. One-third of that tax has now been remitted, one-third transferred to the Social Security Fund, and the other third will this year be payable into the Consolidated Fund towards meeting continuing war costs, such as war debt charges, war pensions, &c. Interest receipts will be lower this year due mainly to the adverse position of railway revenue, thus affecting the ability of that undertaking to meet interest on its capital. As an offset to this, however, we now have the increased revenue from dividends of the Bank of New Zealand, which are brought in under the heading " Profits of Trading Undertakings." These are now shown separately, and include Reserve Bank, Post Office, and State Advances Corporation profits.

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