STRIKING FIGURES
REVENUE AND EXPENDITURE
ESTIMATES FOR 1916,
"The. following figures show the revenue and expenditure for the, year 191516 as compared with the figures for tho previous year:— Statement of the Eevenue for tho' Year ended March 31, 1316, compared with the Year ended March 31, 1915. . " Year , : Year ended ended M'ch 31, .31' cli 31, - - 1910. 1915. £ .£ C'ustoms 3,366,171 3,167,283 Stamp and death . duties '. 1,470,307 1,417,207 Postal and telegraph 1,689,917 , 1,353,443 Land tax .'. 1,048,356 799,641 &aoome tax ..... 1,392,119 510,318
Beer duty 157,892 127,660 Kailways , ............... 4,481,337 4,106,675 Registration ' and other fees ~... 106,203 101,020 Marine. -10,228 . 50,387 Miscellaneous 424,505 461,498 Territorial 219,314 239,623 National.'-endowment revenue ..-. 92,655 78,770' Other receipts 12,073 ' 8,420 To.tal .414,510,137 412,451,945 . Increase—42,osß,l92. "It will; bo noticed that the revenue for 1915J6,-, exceeded : .;,that for 1914-15 by .£2,058,192. 1 This "increase was partly due, of .course, to-the increased taxation and revenue, charges imposed by last year's legislation, and partly to increased activities in the trade'and commerce of the Dominion. . -The; expenditure for tho year ended March 31, 1916, compared with the year ended March 31, 1915, is:— , ■ ' .Year ended Year ended March 31, March 31,- . Expenditure. . 1910. 1915. ■ . £ £ Permanent Appropriations— Civil List 20,280 21,954 Interest and Sinking Fund 3,190,798 3,071,44S Under Special' Acts 574,000 545,341 Subsidies paid to Lo-; cal Authorities ; 133,072 124,821 Territorial Eevenue 52,184 51,685 Endowments- 173,092 173,946 Old Age Pensions .. 450,842 436,765 Widows' Pensions ... 30,265 ■ 31,010 Military. Pensions ... - 48,278 47,607 War Pensions 13,744 — ■: V v •'44,693)155 44,505,177 Annual AppropriationsLegislative ~ Depart- . meats' B}-,<Bo' 37,552 Departments of:. 'Fi- • nance 90,004 V- 170,134 Post and Telegraph Department - ~ 1,294,712; ./ 1,244,569 Working. Kailways' -v ' Department 2,954,006 2,881,037 Public Buildings, Do- . . • mains, and Maintenanco of Koads 100,780 117,676 Native Department 24,877 24,005 Justice Department 452,227 442,478 Mines Department .. 28,55'- 29,170 Department of Internal Affairs ..... 108,058 489,207 Defence Department 432,227 409,137 Customs, Marine, & Inspection of Machinery Departments . 161,225 149,200 Department of La- ' bour 31,670 28,142 Department of Lands and Survey 235,322 239,043 Department of Agriculture, ' Industries and Commerce .... 191,771 206,731 Education Depart-. Mont 1,329,166 1,207,983 Services not provided for . 30,866-. 1 05,512 .• <67,799,933 '47,874,628 . Totais .•.....'412,443,107 412,379,803 Increase, XI 13,304. ' ECONOMIES EFFECTED. "In referenco to the expenditure, I desire especially to call attention tc the deduction of .£74,674. in tho expenditure under the annual appropriations for the year 1915-1G when compared with that of the previous year, and .in this connection I would like to 6ay that this
economy is largely, in my opinion, duo to the caro with- which the administrative heads of Departments controlled their expenditure. On two occasions during the year I met the permanent heads of Departments in my offico and emphasised the necessity for tho exorcise of economy In the public expenditure, especially at the present time, and I wisli to publicly -express my appreciation of tho zealous manner in which these officers carried out the wishes expressed by 1110 by : carefully supervising: tho expenditure in their respective Departments. RESULT OF THE YEAR'S OPERA- ' TIONS. 4 '£ Consolidated . Fund: • 1 Ordinary Revenue' Account,—Balance, : brought forward : on' April 1, VJ15'......... ... 119,017 Receipts during year,— , Revenue, 4i4,498,0fM. . . . Other receipts—Re- . coveries on ac- ■ count of previous . years, .£916. Sinking fund set free, .£2607 —,=212,073 14,510,137 Expenditure during year,— '. Appropriations 12,193,107 —: 2,017,030 Balance on March 31, 1916 .-£2,166,077 ESTIMATES FOR 1916-17. "The revenue for the year 1916-17, oijrlho basis of the existing statutory limitations, is estimated as follows:— X Customs 3,300,000 Railways ....; 4,450,000 Stamp and Death Duties 1,470,000 Postal and Telegraph .. 1,750,000 Land and Income Tax 2,540,475 Beer Duty 195,000 Registration and other Fees 104,605 Marine . '45,850 Miscellaneous '423,500 Territorial Revenue 211,000 Endowment Revenue : 00,971 Other receipts : v 10,000 '414,591,401 "The following figures will show the ways and means of the Consolidated Fund for the year 1916-17, estimating tho revenue on the foregoing basis:— 4 Balance forward from 1915-1G; less investment (.£2,000,000)... 160,077 Estimated revenue, 1916-17 14,591,401 . .14,757,478 Estimated expenditure 14,390,626 Balance ; , <£366,852 RESERVE AGAINST EVENTUALI- ' • TIES. - "Since the war began the deposits at call with' the Post Office Savings Bank have increased very rapidly, and a considerable portion of -these moneys has beon invested in wir debentures and other Government securities. In view of tlie possibility of;.heavy .claims being inado by the-depositors when matters in Europe assume a more normal aspect, I established a Teserve in London by investing, in Imperial Treasury bills, funds which, are not wanted for immediate requirements. New Zealand has by this means assisted the Imperial Government, and htvs at the same time established a strong liquid roaerve against possible sudden claims in tho future. WAR LOANS. "During the session of 1914 authority was granted by this House to enable ■£2,000,000 to be raised for war purposes,' and. during last session additional authority was granted for raising a sum not exceeding for the same purposes, making a total of 4120,000,000 in all. Of this total we had borrowed, up to the beginning of May, 1916, 49,850,000, leaving an unexhausted authority of 42,150,000. The Imperial Government has advanced JE5,500,000 of . the 49,850,000 raised, and tho balance, 41,350,000, has been found -in New Zealand from Post Office investments. Honourable members will' recognise that onr war expenditure must expand in proportion to the increased number of men we-put in the field. It will ,be seen that additional authority, jto -borrow, will .haye, to be granted - fo: enable-..the .expenditure oh'tho future to' be'-metj- andi-I proposoito askthe House for authority to borrow further amounts for war purposes to tho extent of .£12,000,000 for this year. With the unexhausted' authority of 42,150,000, this will provido a total of ,£14,150,000. This is a large'sum, but, as it is expected that the war costs will shortly run. into over .£1,000,000 per month,-the amount I liave. mentioned should not be considered excessive. , ; ' PUBLIC WORKS LOANS. "During last session of Parliament authority was granted to tho Government to raise a loan of <£2,000,000 for,public works, and this amount was duty' raised without having recourse to tho London market. Although the purpose of this loan did not appeal to the-patriotic feelings of Ney Zealanders in the same degree . that it would have done had the. money been required' for the expenses of tho war, the loan nevertheless met with great success, and was considerably, oversubscribed. I would especially call attention to tho .very small cost entailed in raising this loan. The work was performed by the Treasury and Post Offico officials, and the total expenses amounted to .£5035, or { per cent. only. These expenses ; consisted , solely of, brokerage, advertising, and printing.' When '.it is remembered that • the cost of raising a loan at par in London amounts, to, roughly,. 2J-' per, cent, the saving winch has been effected will be -fully recognised. As regards the future, our chief efforts must be exerted in the direction of rendering as much financial aid as it is possible to the prosecution of tho war, and until its termination the utmost economy will be exorcised in the prosecution of public works, and only those works 'which are essential will bo continued. I need scarcely remind honourable members that it would bo impossible to approach the London market, under existing conditions, for a public .works loan, and I do not think that it would be prudent to float a loan in New Zealand for public works purposes. ' I estimate that there is sufficient money now available for public works to enable us to carry on at a reduced rate of expenditure for some time, but to guard against unforeseen .contingencies the. House will .be'; asked' to grant authority for' raising during the year half a million from the Post Office funds. It must bo understood, however, that this author--' ity will be merely a precautionary measure. i REDEMPTIONS AND RENEWALS. "In last year's Budget it was shown 1 , that loans amounting to .£6,274,953' would require to be met in London ■' before. March 31, 1916, afld 1 am glad to '-sqy that this has been' successfully and satisfactorily completed', las: follows ■— £ Redeemed by .creation of 4-per cent, inscribed stock ....; 190,490 Redeemed by investments from . the Post Office 655,801 Investments renewed to the' Imperial Treasury 5,421,053 Converted under Finance Act, 1915 ' 2,600 Converted into 4 per cent, inscribed stock (1943/63) • 5,000 .£6,274,953 "The loans falling due during tho past year- in Australia and Mew Zealand .amounted to 43,631,52), and of this sum JM10.050 has been redeemed with money provided. by tho Treaiurv, ;£2,806,015 has been renewed for a further term of five years, and .£368,100 lias been converted into new debenture!) under the Financo Act, 1915. The balance of 447,350 has not yet been dealt with, as tho Treasury has not received advice from iho present holders whether tlicv wish to renew or not. CONVERSIONS. "Under the authority of the Finance Act of last session all holders of debentures muturing on or before December 1, 1916, wero offered the option of converting into debentures of similar terms and currency to the .£2,000,000 loan aised in tho Dominion for public works, and a sum of 4208,900 was thus converted. I subsequently mado a proposal to holders of debentures maturing on or before March 31. 192-1, to convert into deben-. tares with a currency of twenty-live, years and bearing interest at 4 per een'i free of income tax. Tho result was most gratifying... Up to the end uf April .debentures to the amount of 41,891,100 had been thus - lodged-for- conversion. ; It , will bo seen that tho total amount ,pro-
vtded for under theso three headings for a considerable period amounts to approximately .£12,000,000, and this, when considered in conjunction with tlio net surplus of ,£2,017,030, may be looked upon as iui extraordinarily strong position with which to face tho developments' of the future, which aro rendered uncertain by the impossibility of forecasting the termination, of the war. Treasury Bills, which at one period of ■ the war peached the record amount of .£1,950,000, ivero all paid off before March 31. BIG CUSTOMS REVENUE. "When tho estimate of Customs revenue was made for the year just closed it was anticipated that there would be a considerable restriction of importation owing to increased freights, lack of shipl»ng facilities, difficulty of getting orders A o' auc ' total.exclusion of trade with Germany aud Central Europe. The revenue was accordingly estimated on a conservative basis at .£2,800,000. In addition to this, it was expected that primage lor seven months, and increased duties on spirits, motor-cars, gas and 'Oilengines, would bring in .£145,000, making a total of .£2,945,000. The amount actually realised was ,£3,365,565, being £4.0,508 ovci; the total estimate. This remarkably ,'surplus is accounted . for mainly by tho great increase in the value ,«)[ goods tho world over. While tho Volume of imports has somewhat desensed, the value remains approximately the same as iu former years. Tlio following comparison of tonnages and vaiuos of i'oportii nhowß Mini:—Tonnage. Value. Year. JJ <£ 1913 ' ; 1,563,464 22,288,302 1914 1,538,755 21,856,096 1915 ..' 1,370,057 21,728,834 "It is gratifying to note that Great Britain and British Dominions still maintain their full sharo of tho goods ordered for New Zealand.' Out of the total im-' ports , of .£21,728,834, Great Britain and British Dominions sent .£17,727,137, tho balance being distributed between tho United States »nd. other countries. Tho new duties for tho seven months during which they were in operation amounted t0,<£149,000, and of this amount primago duty of 1 por ccnt.' on all imports was responsible for ,£98,000. Comparative figures showing ilie value of exports for 1914 and 1915 'are as follow:—1914, 1913, Tho value of the exports for . 1915 is the highest ever recorded, the increase being, of course, greatly due to tho high prices .of our staple products. THE BEER DUTY. "Tho now system of levying duty upon tho quantity and gravity of tho worts used in brewing came into force on December 1, 1915, aiid the increased returns up to"' tho close of "the financial year must bo regarded as highly satisfactory from a rovanuo point of view. Calculated according to the old system of collection of - tins. beer duty by means of ■revenue stamps, the iisiiiil estimate for the year was about The iucrease for four, month's due to the new system is .£33,900,' thus making the total revenue for the financial year ,£157/892. It must , bo remembered, however, thai tho four months from December to March are the summer months, which yield tho largest returns. I am advised that tho nnv system has been brought into operation without. a hitch of any kind, and is working to tho entire satis, faction of tho Customs Dopartment. Valuable assistance in the matter of supervision has been rendered by the postmasters and police in! -various country' districts. LAND TAX AND INCOME TAX. "The effect on the revenue of the increased taxation upon land and income is very marked,. Tho net, receipts in tbis Department for the- past year amounted to .£2,440,475 (made up of land' . tax .£1,048,356,- income tax .£1,392,119), and, compared with the collection for tho previous year, show an increase of i£1,i00,516. . ', "Tlio laud tux rocb'iptfl for ,the financial year 1915-16 considerably exceeded the estimate, and, compared with those of .1914-15, are as -follow:—" .£ Receipts, 1915-1G ....1,048,356 Receipts, 1914-15 ~ ... 799,641 An increase : ',!."The inOTmaia£ 'feeeitt's.for;Wio'-finan*. - cial-year " 4 1915-16 -also considerably exceeded the estimate, and, compared with those of 1914-15, are as follow:— .C Receipts,. 1915-10 1,392,119 ; Receipts, 1914-15. -.' 5-40,318 . An increase of ......... £851,801 . "The excess of receipts over the esti. mate ui)der this heading is due partlj to the fact. that: the dislocation of shipping at tho outbreak of tho war did not cause the shrinkage in trade that was anticipated, and partly to the fact that high profits were realised by taxpayers dealing with the primary products of the Dominion. Honourable members will do interested to know that the income tax chargeable for the past year to tamers in respect of the profits derived from land amounted to .£269,000, of which sum .£240,000 had been'paid by March 31 la^t. POST AND TELEGRAPH DEPARTMENT. li "The Post and Telegraph Department's revenue shows a very material increase, which is largely due to the imposition of tho halfpenny war. tax on-all postal matter excepting newspapers, and .to tho increaso in the telegraph rates. The revenue, collected for tlio ' year amounted' to.' £1,680,917. ' This' exceeds that of the. previous year by no less than ,£3uG,474. Tho increased charges were in. operation for only- six months of tho year, and produced, approximately, a. 6uui slightly below- the amount which had been . ' { "The Savings Baiik deposits reached a total of .£13,706,057, while . .the withdrawals amounted to <£11,294,974. ' At the end . of ihe year*. the :total amount. standing' to the credit of depositors was no less than ,£22,166,365, an increase of .£3,118,336. The money-order and postal note business has steadily incrfeased, the total issues for the year amounting to i£4,252,&43. The revenue from postages amounted to .£80.1,938; from telegrams, .£386,138; and from telephone exchanges, .£287,547; tho balance being: made up of miscellaneous items. .Both the' telegraph and telephone exchange services have increased at a satisfactory rate STAMP AND OTHER DUTIES. "The revenue derivable from this Department lias increased ..very much of late years. Less than ten "years ago the.revenue rarely.exceeded half a million per annum. During the last seven years, however, the revenue collected each year has 'largely exceeded that' of tho previous year. This year the revenue collected wits .£1,470,307, as against .£1,417,207 Inst year, an increase of <£53,100. This is a • very satisfactory result, especially in view of tho . fact that the increased charges authorised last session had only been, in operation for a. portion of tho year. The cost of collection is less than 1 per cent. The revenues collected by the Stamp Department" aro derived from various sources, comprising, death and stamp duties, totalisator , and bank taxes, and fees from the ■ administration of the Joint .Stock Companies, Mining Companies, Building Societies, and Industrial and Provident Societies Acts, as well as from the control of the-. Land Transfer and Deeds Registration Department, which also conies within the jurisdiction of tho Commissioner of Stamps. LAND REVENUE. "The gross revenue received from Crown, oudowment lands of the Dominion shows. an increaso for tho past year. Tho total receipts amounted to .£1,286,524, as against XV,163,127 received during tho previous twelvo months. - "Analysing tho figures under tho main headings tho result is:— X ■Ordinary-■'•'Crown lands ... 501,911 Land for settlements ... 480,258 Cheviot Estate 15,654 National endowment 115,183 Primary and secondary ■education endowments ... 87,501 Other sources 85,954 ■ • ,£1,286,524 "The amounts oustam'ing at. March 31 ■ were .£23,514, representing postponements of rent granted under Section 13 of tho Land Laws 'Amendment .Act, 1912, and <£33,737, representing ordinary arrears. SETTLEMENT OF CROWN LANDS. . "A total area .of approximately 750,000 ' acres was offered for public application
during tlio year under the various tenures provided by tho Land Act and tlie Land for Settlements Act, etc., aud tlie bulk of this kind was readily taken up. In accordance with tlio intention ot the Government to afford every facility ior tlio selection of land by members of Our Expeditionary Forces, who havo returned to tlio Dominion and who havo lieen honourably discharged, a considerable area has been proclaimed for seleclion under tlio Discharged Soldiers Settlement Act, 1915. Other suitable areas are under survey;' and will bo made available as aarly as possible. Already numbers of applications for land have been lodged, 'iho regulations governing tbo granting »f. financial assistance to soldici settlers have been, issued, and money up to an amount of .£50,000 has been authorised under the Act to provide advances to assist in developing tlio holdlugs. "The drainage works undei taken in, connection with tli6 swamp lands on tho Hauraki and lfangitaiki Plains have progressed considerably during the past financial year, and the settlement of the reclaimed areas has proved a most successful undertaking. To further tho devefopment of other areas of swamp land throughout the Dominion tho Swamp Drainage Act was jrassed last session, and special inspections and reports are now being made regarding various swamp lauds with a view to further operations. . AGRICULTURE. "Tlio agricultural and pustoral pursuits of the Dominion havo been most successful during the past year. Excepting that abnormally dry weather occurred in parts of Canterbury and North Otago, tiie season was favourable, and the settlers have derived considerable benefit from tilb export of food products during the war. Prices obtainable overseas lor all kinds of farm produce remained at a very high level, with tho result that the value 'of our agricultural export was much higher than in any previous year. Details regarding the valuo of farming produce exported during tho year havo been already referred to umlcr the heading of 'Customs.' As there is at present every prospect of another good year for our farmers, and as the bulk of our exports is not in the nature of luxuries but rather of necessaries to the peoples of liuropo, the out. look for the future is hopeful, although obviously it is not to bo expected that the present very high level of prices will continue after peace is established. • LAND FOR SETTLEMENTS. "The purchase of lands for settlement during tho year has boon for 'various reasons considerably restricted. 10,495 acres, valued at >£136,326, were, however, purchased. , There has been a good demand for tho whole. Arrangements are now being made to secure suitable lands for returned soldiers, for which purpose ,£500,000 will be required. Land should be available in various districts under conditions likely to induce • settlement. Notwithstanding tho war, land values show no tendency to drop, owing, no doubt, to the' great demand for all produels. STATE ADVANCES OFFICE, "There has been no change in the policy of this office during the year. The limit of advances to local authorities remains at ,£SOOO, while advances not exceeding .£IOOO (including loans for the repayment'of mortgages and the erection of homes in urban districts up to £150) continue to bo made to settlers. "In the Workers' Branch tho full amount allowed by the law is being ad-' vanced. Amounts of Advances paid, over during Year ended March 31, 1916. .£ Advances to settlers 814,555 Advances to workers 275,680 Advances to local authorities ...' 285,410 .£1,375,04!) Lonua Authorised but not Paid over as at March 31, 1916. , .0 Advances to' settlers 147,270 Advances to workers 85,185 Advances to local authorities ... 300,490 ' . £533,951 "There has been ho 'increase in - the ! rates of interest chargeable ~tp, settlers, workers, and local bodies during ! the year. Tlio rates to settlers and workers remain at 5 per cent., reducible to 4$ per cent, for prompt payment. The rate chargeable to local authorities remains .at 41- .per cent.
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Dominion, Volume 9, Issue 2799, 17 June 1916, Page 13
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3,423STRIKING FIGURES Dominion, Volume 9, Issue 2799, 17 June 1916, Page 13
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