The Dominion. FRIDAY, MAY 13, 1910. THE DOMINION'S FINANCES.

Dominion, Volume 3, Issue 816, 13 May 1910, Page 4

The Dominion. FRIDAY, MAY 13, 1910. THE DOMINION'S FINANCES.

The complete statement of receipts and expenditure under the Consolidated Fund for the year ended March 31, 1910, is published in the Genette issued last evening. Sir Joski'h Ward gave the 'revenue side o£ the country's balance-sheet at Win ton last week, and it seemed satisfactory enough in most respects. He also indicated eertair savings which had been made in Departmental expenditure, and which, while falling far short of his promised economies, yet afforded some groumlf for commendation. The fuller details of the financial position supplied by the Gazelle are extremely interesting. "While they disclose a marked recovery in several respects already pointed out in our previous reference to the financial position, there-are some'aspects of the position which are not so satisfactory as the figures at first sight appeared tc disclose. The Phime Minister, ior instance, laid a good deal of stress on the fact that the revenue of the year had. established a record—that it totalled a larger sum than had evei before been collected by the Treasury of the Dominion. "This is perfectly true; but it is just as well that the public should know that the expenditure also established a record—that it was the largest the Dominion has ever indulged in. This is important in view of the fact that the past year was one in which the Government, had laid itself out to economise, and there is no doubt that economy has been practised in certain directions. That there shall be no misunderstanding on the point we give below the figures showing the actual revenue and expenditure for the past year: Expen- InKovenue. Increase, diture.. crease. ££. £ £ 1909-10 .... 9,238,261 237,076 8,990,922 205,403 Our readers will probably be struck by.the- fact that the increase of revenue is very little more than the increase of expenditure. This is, and has been, one of the features of the finances of the present Government. Every increase of revenue has been celebrated by additional 'expenditure, which has added to ,the cost of•• government, which last year forced on the Ministry the necessity for retrenchment in the public service. The ■increased expenditure last year, it should be .pointed out, was not due to any addition to the annual appropriations—in which there was an actual saving—but resulted from the increase in the permanent appropriations. The accompanying table will show the heavy increase in the permanent and annual appropriations since the Ward Government took office': . . EXPENDITURE. Pcrma- Tn- ' nont Increase. Annual crease £ . £ £. £ 1906-07 ... 2,998,169 128,062 4,736,805 484,573 1907-08 ... 3,128,621 130,452 6,085,343 348,538 1908-09 ... 5,210,030 81,409 5,575,483 490,140 1909-10 ... 3,514,403 304,379 5,476,513 * ~ '■ "Decrease, £98,970 This means that to-day the expenditure under the Consolidated Fund— which, of course, excludes public works—is over a million a year greater than it, was three years ago. Some stress'has been' laid on tho fact surnlus of the past year was £432,316, as "against £184,321 for the year previous. The larger surplus has its satisfactory aspect, and it is particularly gratifying in view af the period of depression through which the country has passed. If tho two years are compared; howover, the actual results really show very little difference. This will readily be seen from the following figures taken from the Gazette: — 1908-09. 1909-10. £ £ Revenue ....: 9,001,185 9.238.261 Expenditure 8.785,513 ! 8,990,9?.2 Balance £215,672 £247,339 The balance on ordinary receipts and expenditure, as stated, shows little difference in the two years. In 1908-09, however, a sum 0f.£32,651 was taken from the year's revenue, and, added to the balance brought forward, £767,8>i9, was transferred to the Public 'Works Fund. This reduced the surplus of that year to the £184,321 stated. During tho past year no transfer was made to public works, and the Minister of Finance had the full amount of the balance brought forward (£184,321) to go towards swelling the surplus to the amount stated—£432,3l6. We are not in any way questioning this transaction, but are merely putting tho facts of the position so that a correct judgment can be formed as to the financial' results of the: two years' operations. There is, indeed, very little to choose between them, so far as the actual balances between revenue and expenditure are concerned. The most satisfactory feature of the past year's operations is the reduction in the annual appropriations. The amount is small —almost insignificant when compared with tho annual increases for so many years past—but the fact that it is the first occasion under the present regime that there has been any practical evidence of a recognition of the necessity for economy in public expenditure makes it noteworthy. We regret that the Prime Minister already shows signs of backsliding in this respect." He will be very ill-advised if he departs from the policy to which he pledged himself under stress of circumstances in the early part of 1909.