THE DOMINION’S FINANCES.

Manawatu Herald, Volume XLIII, Issue 2254, 22 March 1921, Page 3

THE DOMINION’S FINANCES.

COUNTRY IN SOUND POSITION. Wellington, Mulch 10. y The Premier, as Minister for Finance, has issued statements showing:— 1. The'revenue and expenditure for the eleven months ended February 28 th, 1921. 2. A statement showing the position of the Public Works Fund on February' 28th, 1021. 3. A statement of actual revenue and expenditure for the twelve months ended February 20th, 1921. For the eleven months ended February 28tli, 1021, the revenue collected under various headings was £20,880,887. The expenditure brought to charge for the same period was £24,210,741. • On March 31st, 1920, the available means for public works were £210,502. Additional funds had been received ‘ from various sources making a total for the eleven months of £3,140,510. A further sum would be transferred from the Consolidated Fund o!: £140,000, and under the Finance Act of 1920 the sum of £250,000 would be raised, making the gross total available for (he year 1020-21 of £3,530,510. The expenditure under the appropriations for the eleven months, excluding separate accounts having ways and means of their own, was £2,160,660. The estimated expenditure for the remainder of the year was £1,099,715, a total of £3,260,384, the estimated balance on March 31st, 1921, being £270,126. It would thus he seen that a large sum had been found for public works during the past eleven months, but it would be necessary to confine the expenditure during the coming year under this- heading to urgent and pressing works only. For the twelve months ended . February 28th, 1921. the •revenue amounted to £32,409.506, and the expenditure t<> £27,794 v 773. Ihe increase in Customs revenue was due largely to the fact that overseas manufacturers were able to fulfil outstanding and current orders with a rapidity that had not been anticipated by importers, many of whom were now overstocked. It was therefore certain that imports would he greatly reduced during the coining year, and the Customs revenue would he reduced in proportion.

The Post and Telegraph and Railwavs revenues .-bowed increases on account of the additional chargeimposed in order to meet the payment of higher wages and bonuses arising out-of the increased cost of living. A close oversight had been maintained over the expenditure, which was within the appropriations, hut with the prospect of reduced revenues ii was necessary that the utmost economy should ho practised in connection with all State activities and administration. At March 31st last, the accumulated surplus amounted to £17,500,000, This surplus was being utilised for discharged soldiers' settlement and other purposes for which loans would otherwise have been nece-sarv. The Public' Debt had thus been saved a very large increase and the taxpayer had been relieved of annual interest and sinking fund charges which would amount to roughly £1,000,000 per annum. The allocation of the accumulated surplus in this manner also provided an investment which produced interest at the rate of 4 per cent, per annum. NEED FOR ECONOMY AND HARD WORK. “J anticipate that there .will be a -nrplus at March 31st next,” said the Premier, “but the excess of Customs revenue will to a great extent account for this. It is certain that the Customs revenue will show a large drop next year. I propose to carry as much as possible of the -nrplus forward to assist in tiding over that portion of the year when., even under normal conditions, the expenditure usually largely exceeds the revenue. The heads of Departments have been instructed that they must make savings whenever possible, Large savings have aiready been made, and further economies are being effected. For in--lanee, the temporary staff, which at April Ist, 1919, totalled 1,050, had been reduced to 388 at December 31st, 1020; while as the result of the legislation passed last session which authorised the transfers from the accumulated surplus referred to above, our annual interest Mid sinking fund charges will be considerably reduced. In the last Budget I issued a warning as to the necessity for caution in both public jind private finance, and pointed out that we must he prepared to face troubles and difficulties with which an inevitable reduction in the volume of money would be attended. Conditions have changed, as I anticipated, and the position has to be faced. I do riot, however, regard the outlook as a cause for discouragement, but rather as an opportunity for the exercise of the virtues of prudefice and good judgment. The figures I have placed before you indicate that lhe financial position of the Dominion is quite sound, and our ability to meet all obligations is unquestioned. Special measureare not so much required as ihe practice of economy, hard work and co-operation. If all classes of society co-operate intelligently in maintaining the productive activity of this country the temporary difficulties to which I have referred will be easily overcome.”