FINANCIAL STATEMENT.

Hauraki Plains Gazette, Volume XXXVII, Issue 4998, 9 July 1926, Page 2

FINANCIAL STATEMENT.

INCREASE IN EXPENDITURE.

SOUND POSITION MAINTAINED.

In presenting the .annual financial statement to Parliament yesterday the Minister of Finance (Hon. W. Downie Stewart) said :—' “It is gratifying to find that ok a result of last year’s operations the Dominion finances have been mainta,ine.d in a sound* and satisfactory state. The surplus revenue of £1,150,000 shown in the Ordinary Revenue Account of the Consolidated Fund is largely due to increased Customs receipts, while the expenditure; although showing an increase on the previous is not more than was anticipatodk “The principle of enforcing economy and' effecting savings has been sustained, and in this respect I will adhere to the established policy. For the cii'rrejnt year it will be iinafivisable .to expect any increase in the gross revenue —in fact, the preparation of this statement is on the expectation of a possible reduction.

“It is imprudent to expand services in reliance on increased revenue mainly derived from Gusto,ms duties, a source inherently liable to fluctuations. Inflated revenue due to increased imports cannot be regarded as stable, and surpluses from such a source should, when available, be applied as far as possible to debt-reduc-tion purposes, and not be regarded as a basis for reducing taxation. In this /connection, and apart from our statutory obligations to reduce debt, the year’s surplus has e,nabled about £4i14,000i out of the Ordinary Revenue Account to be utilised for debt-reduc-tion, besides ensuring the transfer of £500,000 to the Public Works Fund.”