A BIG SURPLUS

New Zealand Times, Volume XLIV, Issue 10272, 6 May 1919, Page 6

A BIG SURPLUS

THE COUNTRY’S FINANCE

STATEMENT BY THE ACTINGFINANCE MINISTER.

A recent cablegram from London stated that Sir Joseph Ward had announced that the Acting-Minister ior Finance, the Hon. Arthur Myers, had cabled to the effect that New Zealand’s balance of revenue over expenditure for the last financial year was £3,600,000. The total surplus ot revenue over expenditure during th« life of the National Government had been over £15,000,000. Yesterday Mr Myers stated that, tho above figures were in substance correct, although the New Zealand accounts are still subject to final ex,dilation by the Auditor-General. “it will bo reinembered, ’ said air Myers, “that Sir Joseph Ward, when delivering his last Budget, stated that ho anticipated a surplus at the end of tho financial year of £176,965. Iho revenue for the past financial ycai, however, £22,352,3/ 2, oemg some £2,167,172 in excess of the estimate, and the expenditure during the same period, £18,673,590, being less than the estimate by £1,332,636, there is consequently a surplus on tho year's operations of no less than £3,678,773. This, together with accumulated surpluses since 1911-15 amounting to £ll.560,796, makes an aggregate amount of £15,239,563 ..available as tho difference in reven.ua oyer .expenditure lor the past four years, and which represents some 25 per cent, of our war expenditure to March 31st last. This omount is invested in short-dated securities in London, and Will be .available for appropriation as may bo ultimately decided. WAR OBLIGATIONS. “Whilst the position of our finances can only be considered as eminently satisfactory and indicative of prudent ■ financial administration, in a country that has shouldered to the full its monetary obligations during tho whole period of the war, now happily terminated by the victory of our arras, 1 nevertheless desire to draw attention to the fact that there is still a large sum to be provided on account of tho balance duo to meet our direct war obligations, including gratuities to our soldiers, repatriation, and the settling of our returned men on the land, as well as in respect of pensions to onr disabled warriors and the dependents of those Who have made tho supreme sacrifice. ,

“In comparing the figures for the financial’year just ended with those for the year 1917-18, an increase is disclosed in interest and -sinking fund charges of £1,655,990, and in pensions of £803,000. Accounts showing the principal increases in expenditure are Railways, with an increase in expenditure of £347,937; Post arid Telegraphs, £212,536; Mental Hospitals, Public Health, etc., £93,107; Education, £91,739. The payment of war bonus tocivil servants for the year under review is included in the figures given under expenditure returns. Those departments showing the principal increases of revenue are as follow:— Income tax in which there is an increase of £59.9,775 ■ during the year; Customs. £406,373; Railways, £307,222; miscellaneous, £228,232; Stamp and Death Duties, £232,758; Post and Telegraphs, £128,556; and Land Tax, £126,985.”

INCREASED PRODUCTION NEEDED.

Mr Myers again laid stress, in view of the country’s heavy obligations, on the vital necessity that exists for all classes of the community to take part in a united effort to increase production to the utmost extent, there being no guarantee that the abnormally high prices now being realised by nil our staple products will be continued indefinitely. “No country in tho world,” said Mr Myers, “can possibly possess capital other than that produced from day to day by its inhabitants, and therefore it cannot too often bo pointed out .that it is the duty of each one of us to work and produce to the fullest extent of our powers.”

The net annual liability for war pensions at March 31st last was £1,701,(XX), while the-payments for total pensions, i.e., including war, old age, widows’, Maori war, and minors’, was over two million pounds. By way of comparison Mr Myers stated that the gross pensions payable on account ol the last four mentioned sections for the rear ending March, 1914, was £473,300. The important question as to whether the present amount of taxation can bo reduced, or whether its incidence can in any way be altered, will be dealt with by the Minister for Finance when presenting the next Budget to Parliament A DETAILED STATEMENT. A statement of the revenue for the year ended March 31st, 1919, compared with tho year "ended’ March 31st, .1918, was issued, as follows;—•

1 Tear Year ended. ended. J 31/3/19. 31/3'18. 1 X X J Customs 3,830,681 3,364,303 JStamp am death 1 duties 2,124,772 1,892.014 and Telegraph . 1,836,2.V'> jLanil tax 1,512,693 1,385.708 "income tax .. 6,210,336 5,619,56! Beer duty 273,334 2.37,0:5 Kaihvays 4,975,445 4,068,223 Registration and other fees .. 111,993 101.219 Marine 35,151 38,053 Miscellaneous 946,669 718. -137 Territorial 202,734 205,643 Nat ionnl endowment revenue 166,824 100,493 iOther receipts 45,928 39,202 Totals 22,352,372 20,206,222 Increase lot year ended. 31/3/1910 2,1-16.1.50 Statement showing tho expenditure