THE PAST YEAR

Hawke's Bay Herald-Tribune, Volume 81, Issue 5, 29 September 1937, Page 3

THE PAST YEAR

Our Own Correspondent.)

A Surplus of £472,000 Resulted REVIEW BY MINISTER

(From

WELLINGTON, Last Night. "The generally prosperous condition of the Dominion throughout the past financial year resulted in the revenue exceeding the estimates, while expenditure, it is satisfactory to note, shows a substantial saving eompared with the relative appropriations. The actuai surplus for the year, as has already been publicly announced, was £472,000, eompared witb £281,800 for the previous year," said the Hon. W. Nash, Minister of Finance, in his Budget speecli in the House to-night. "Tho^public accounts having already been published, it is unnecessary for roe again to review them in detail, while particulars of both revenue and expenditure, as eompared with the Budget estimates and with the results of the previous financial year, are attached to this statement," he added. Tho year's transactions may, however, be summarised as follow: — The generally prosperous condition of the Dominion throughout the year resulted in the revenue exceeding the estimates, while expenditure, it is satisfactory "to^ note, shows a substantial saving eompared with tho relative appropriations. The actuai surplus for the year, as has already been publicly announced, was £472,000, eompared with £281,000 for the previous year. The year's transactions may be aummarized as follows: — Eevenue. , Taxation 26^1,000 Interest •• 2,387,uuu Other rcceipts 1,81^,00 v' • £31,147,000 Expenditure. £ Permanent appropriations — Debt services 9,380,000 Exchange . . . . 1,581,000 Highways . . . 2,509,000 Other services 618,000 14,088,000 Annual appropriations — Social services 9,913,000 Other services 6,674,000 16,587,000 f>£30,675,000 Surplus £472,000 Salaries and Wages. It will be observed in comparing these results with those of former years that both revenue and expenditure are now on a higher level than previously. This is accounted fo^ principally by the implementing of th.9 Government's policy of extending the scope of State activities, the increased ftost of social services, and the restorations of the "cuts" in salaries and wages of Government employees. Tho practice of drastically reducing salaries and wages at the outset of a depression has been tried with results of which most of us have been made painfully aware. It is realized now that, apart from other considerations, a poli5y of deflation involves such widespread reduction in purchasing* power that any savlngs in expenditure are more than offset by the loss of revenue through the lessened demand for commpdities and services. The viction of the Government in restoring salaries and wages to their foriner level has been amply justified by results. The revenue from wages tax during the past year indicates that in salaries and wages alone an increase of £12,000,000 has taken place. It is impossible to estimate the ultimate effect of this addition on thd national income, but it is obvious that a very large measure of the general improvement in condi'tions within the Dominion is attributable to this section of the Government's policy. Social Service Increased cost of social services arises mainly in respect of increased pensions and the extension of hospital and dental clinic facilities. The previous rates of pensions were insufficient to enable a reasonable standard of living to be maintained. In addition to improving the actuai pension rates, the qualifying conditions were made less restrictive. Few would deny this measure of assistance and eomfort to our old-age pensioners, widows, invalids and those suffering from war disabilities, who are now unable adequately to provide for themselves. Administrajtive procedure has revealed ono or two anomalies in the legislation ! dealing with invalidity pensions and steps wiil be taken during the present session to remove them. .They are associated with the country in which the invalidity originated and the period of absence allowable overseas.