THE FINANCES

Dominion, Volume 11, Issue 120, 7 February 1918, Page 6

THE FINANCES

4 . "UNCOMMONLY STRONG POSITION" THE WAR TAXATION STATEMENT BY SIR JOSEPH WARD Sir Joseph Ward, Minister of Finance, stated yesterday that the revenue for the month of January lias como up very well indeed, and shows an increase of £555,541 over the revenue for January, 1917. Practically every branch of the revenue shows att increase. The receipts for the ten months ended January 31, 1918, show a total of £11,811,524, and is in excess of the corresponding ten months of the previous year by £719,565. This increase of revenue is very satisfactory in view of the fact that Customs show a falling off of £444,751, and railways £166,042 for that period.

The total expenditure for the ten months ended January- 31, 1918, exceeded that for the ten months ended January 31, 1917, by £403,603. The chief increases in expenditure are to be found under the headings of post and telegraph, railways, agricultural and education. The increases of revenue of the various Departments for the ten months are-: — ■ £ Stamp and death duties ... 20,841 Post and Telegraphs 81,802 Land tax 660,377 Income tax 325,905 Beer duty 35,204 Miscellaneous 197,816 National endowment revenue 14,522 Other receipts 18,441 Total £1,354,968 The decreases are: — Customs 444,751 Railways 166,042 Registration and other fees 8,987 Marino 4,403 Territorial 11,220 Total 635,403 Deducted from the increases, this leaves a net increase of £719,565. The increases of expenditure are: — £ Civil' list 2,768 Interest and Sinking Fund... 52,835 Legislative 3,786 Finance Department 8,623 Post and Telegraphs 79,282 Railways 168,393' Public buildings 6,133 Justice 606 Internal Affairs 3,936 Agriculture 96,374 Education ; 85,088 Total ' £507,824 The decreases are: — £ tinder Special Acts 51,157 Native Department 261 Mines ; 2,615 Defence 10,31-4 Customs and Marine 6,906 Labour 2,227 Lands and Survey 2,278 Services not provided'for ... 25,463 Total £104,221 This deducted from the increases loaves a net increase of expenditure of £403,603. ; There are no Treasury bills outstandi ing. At the same period last year there was £300,000. Past Twelve Months, A comparison of the full twelve months, dating from January 31, 1917, up to January 31, 1918, shows that the increases of revenue in all amounted to £4,494,046, and the decreases of revenue to £657,350; the net increase of revenue for the twelve months ended January 31, 1918, as against the previous twelve months being £3,836,696. The main items that are responsible for those large increases ave: Income tax increase £3,425,456, and land tax £647,531. That is an increase of over four millions of revenue unjlcr these two heads.

I may state that the total amount of land tax received for the year ended January 31, 1918, is £1,373,496, and income tax £4,588,031—a total .-.f £5,961,527 from these two branches of revenue.

In reference to the Public Works expenditure: From April 1, 1917,/ to January 31, 1918, the expenditure under appropriations amounts to £802.912, and under special Acts £440; total, £803,352; and the balance available for expenditure on January 31, 1918, is £336,393. There has been a decrease of expenditure out of tho Public Works Fund in all branches of tha service excepting three:— £ Departmental decrease 9,536 Railways Public buildings ••• &^<< Lighthouses and harbour works 1,242 Immigration 623 Roads and bridges, etc S4,MZ Development of mining -Vol Contingent defence j,olß Irrigation and water supply,... 4,19b Plant, material, and stores 3,072 Unauthorised ■ ] > m Total £206,884 Increases. •£_ .Tourist and health resorts 59 Lands improvement ..'. £>°-J Telegraph extension *V»* Total ■-•• £*^ 2 This amount of telegraph extension is in reality not an increase, as far as dhe Public' Works Fund is concerned, as it was previously provided ior under separate Act; and that wph™ llo " " necessary to show that wh.le the em appears as an increase in the Uu''° Works Fund it is really a transfer under Act to that Department. A Ceneral Review. Speaking upon the financial position Generally, Sir Joseph Ward said that as nracticallv the whole of the incoma ,x- hat s."in addition to *hat already Sd-b payable this month, here Sid be a substantial surplus at March 31 next. It had to be remembered i» connection with the expenditure *me which had gone up considerably, that it was due very largely to the conditions brought about by the war. The total amount of interest aid sinking fund paid for the.ten months ended January 31 amounted to L 6,367,730, which was an increase oti-oi,-835 over the previous year, and considerable increases under this head Hart to bo looked for. , The expenses of running practically all the Departments of the State owing to the war had materially increased, and in that respect, so far as the war nffected them, necessarily were abnormal: but looking at the whole matter impartially it was clear that the financial position of the country was uncommonly strong, and it was very gratiljing and reassuring to the country as a whole that It was so.