THE NATIONAL DEBT

Hokitika Guardian, 10 August 1929, Page 8

THE NATIONAL DEBT

NEARLY £112,000,000 INTEREST. The public debt of New Zealand amounted at March 31st. to £204,' 191,983, a net/increase during the financial year of £12,795,731. Doth amounts were inflated by the borrowing in advances of £7,000,000 lor the current year’s requirements; the amount received in respect of that loan by March 31st. having been £5,379,105. Including the final instalment, due on April 2nd. the amount of public debt for which interest has been provided in this year’s Consolidated Fund estimates is £205,812,878.

The gross charge is £11,924,729, but recoveries from various accounts will be £2,921,618, leaving a net charge of .£9,003,111. Against ihe latter amount has also to be set the sum of *4,745,000 included in the' estimated revenue, comprising interest on invested public moneys, interest earned by the Public Debt Redemption Fund, and the contributions by the Railways and Post and Telegraph Departments. The amount provided for repayment of debt is £1,504,(307, including £l,156,589 for.transfer to the Repayment Account, out of which stock is purchased lor cancellation, and £405,136 for. reduction of the Imperial Funded Debt, which was originally £27,532,164, and at March 31st. had been reduced to £25,153,018. An annuity of £l,651,930 is paid in respect of this debt, comprising interest at slightly less than 5 per cent, on the outstanding debt, the balance being applied to reduction of the pnneipa l In the first year, 1922-23, only £285,854 was available for the latter purpose; this year.£4os,675 of the annuity will be used to reduce the principal. Altogether, the debt charges are estimated at £10,567,718, which is-,£45G,-978 more than was paid from the Consolidated Fund last year.