WAR EXPENSES

Grey River Argus, 4 June 1943, Page 5

WAR EXPENSES

WELLINGTON, June 3.

In presenting the Financial Statement in the House of Representatives last evening the Minister of Finance (Hon. W. Nash) said: —

"In the War Expenses Account, which is now the principal of the State's financial responsibilities, the results for the year ended March 31 were as follows:—

War Expenses Account. 1942-43. — Expenditure: Navy, £8,500,000; Army, £88,900,000; Air, £24,300,000; Civil, £14,900,000; Reciprocal aid: Reverse Lend-Lease, £7,000,000; Miscellaneous, £4oo,ooo.—Total. £144 000,000. Receipts: War taxation, £39,600,000; Transfers from Consolidated Fund, 1941-42 surplus, £1,700,000; 1942-43 appropriation, £1,500,000, Miscellaneous, £400,000; Reciprocal aid: Lend-Lease, £26,800,000; Memorandum of Security. £15,400,000; Loans raised in New Zealand. £62,600,000.—T0ta1, £148,000,000. “Army costs met directly from New Zealand, including the cost of forces in the Pacific Islands, were over £12,000,000 in excess of the estimates, but a's indicated at the time the estimates were submitted, it was most difficult to make any reliable . estimate of what would be required to pay for the expansion of the forces then taking place. “The Air Force estimates were exceeded by £5,300,000 due to further expansion of activities since the last Budget was submitted.’’ The estimates for the War Expenses Account to March 31, of next year were given by Mr. Nash as follows :—

Expenditure: Navy, £lO 000,000; Army, £68,000,000; Air, £34;000,000; Civil, £16,000,000; Reciprocal aid, Reverse Lend-Lease, £2o,ooo,ooo.—Total £148,000,000. Revenue: War taxation (at existing rates), £40,000,000; Transfer from Consolidated Fund of 1942-43 surplus (£4 200,000) and further £1,500,000 from 1943-44 revenues, £5,700,000; Miscellaneous, £300,000; Amount to be borrowed from the United Kingdom Government under the Memorandum of Security Agreement, £12,000,000; Reciprocal aid: Lend-Lease, £4o,uoo>C ioO.—Total, £98,000,000. Deficit, £50,000,000. ' “In regard to the Army, the estimated expenditure of £68,000,000 represents a decrease of £2,900,000 compared with last year’s expenditure,' said Mr. Nash. “This is the result, in the main, of the reduced requirements for equipment, vehicles, etc., lhe tap-c-ring-off of capital expenditure in New Zealand in the form of camps, and a reduction in personnel, while a saving will also be effected in our expenditure overseas due to the fact that last year’s expenditure included the cost of initial equipment supplied to our forces in the Middle East, ’lhe Navy) estimate represents an increase of £1,500,000 over last year’s expenditure. This is due principally to the purchase of additional ancillary vessels and to additional pay and allowances consequent upon mcreasen personnel For the Air, this year’s estimate of £34,000,000 represents an increase of £9,700,000 over last year's expenditure. The substantial development which has taken place in the Air Force is a matter of common knowledge. Not only has there been a large increase in the equipment and personnel, but there has been a corresponding increase in pay and allowances. In fact speaking generally, there has been an increase in all headings of Air "Force expenditure, with the main exception of aerodromes and buildings, as lhe capital programme in this respect is rapidly approaching completion.