THE FINANCIAL STATEMENT

Taranaki Daily News, Volume XLVII, Issue 7882, 26 July 1905, Page 3

THE FINANCIAL STATEMENT

iIOTREK LUGE SURPLUS. The tallowing » re some ° f !£ principal items appearing m *• Financial Statement., wh.cbwas deHwed by «« Colonial Tr«surer House of Representatives on Tuesday evening : CONSOLIDATED FUND RECEIPTS. l«e ordinary revenue amounted to £7 282.870, and other receipts (including £63,200 lor sinking fund accretoSs) to £M,327, mak.ng »total rf £7.347.197. The revenue exceeded that ot the previous year to the amount ol £261. 484. and was In cxSri the estimates to the exte.U rrf £248.070. Compared with the revenue ol tbe preceding year stamp revenue yielded an increase oi £BO - 835. railways £49,775, income tax £32 583, customs £30,659, miscellaneous £27,003; while land tax registration, marine and territorial also gave increases amounting in all to £41,143CONSOLIDATED FUND, 1904-5. The revenue received for the financial year ended March 31,1905, compared with toe corresponding penod of the previous year:Ordinary revenue :-Customs u, 631984, increase £30.659; stamps, including Port and Telegraph receipts £1,160,119, increase £80,83 a», land tax, £352,854, increase £17,863 ; income tax, £353,952, increase £33 583 ; beer duty £96,210, decrease £511; railways £2,217,767, increase £49 775 ; registration and other lees £103,465 increase £IO,BIB ; marine £3B 121. increase £285 ; miscellaneous'£l7o,37B, increase £27,003. Territorial revenue :-Cash land sales £41,169, decrease £6398; deferred pavment land sales £5557. decrease £l4B ; pastoral runs rents £210,474, increase £18,723; total £7,282,870, total increase £261,484. We commenced the year with a balance ol £649,741, "and transferred, as I have said, £600,000 to the Public Funds, leaving a net balance ol £49,741. The excess of receipts over the expenditure amounted to £li }'f 3 - thus producing a balance of £761,036 at the close ot the year 1904-5. LAND AND INCOME TAX. The total receipts from these sour- i ces was £606,806. As the estimated amount collectable was £552.000, | this department of the revenue pro- ] duced £54,806 more than was antici- i patcd, s

ESTIMATES. Turning to the annual votes, the , excesses amount to £183,238, being : the estimated expenditure over the j actual amount disbursed last fear, and members will find that the larger items arise in the Departments oi Post and Telegraph, Education, ] Working Railways, and Lands and . Survey- These Departments are re- . sponsible for £149,185. Unfortunate- ' ly, with the growth of population, additional demands lor support of . our Mental Hospitals and Charitable . Department are made, which ran into . some £9OOO. As our Customs revenue expands we must expect increased expenditure, and this is set down . at £8315. The expense of the general election this year I estimate at J £28,000, which will *e non-recurring, I hope, lor some three years hence. In the Mines Department we require , to provide £1325 for a colonial ana- . lyst's department, and £4555 for the , geological survey department to as- ( sist in the discovery ol fresh fields of mineral wealth, and the development , tff mineral areas already kuown. s PROPOSED EXPENDITURE. j Otil es«n» te £54,900 in- \ crease £741; ««■* ** Jl n s* ■ fend £2 010.748, increase £83,017 , Sder special Acts £739,653; increase £*M67; total £2,851,298, increase ; 'ftfitrt charges absorb, £IBO.825 Interest and **taß. ta < Moultrie for £83,017, and £96 567 ffaUowed under the appropriating* Acts. EXPENDITURE ANNUAL APPROPRIATIONS. Legislative Department's estimate , be 1905-6 £23,559, decrease a.1040. Colonial Secretary's Department £74,281, increase £4812. i Public HealtJj Department £26,729, decrease £5044. Industries and Commerce and Tourist Department, £53,040, decrease £8539 Colonial Treasurer's Department £44.328, increase £3299, Old Age Pensions Department , £4333, increase £396. Justice Department £141,623, decrease £845, t M. , Crown Law Department £3009, Increase £sll „ _ . < Bostal and Telegraph Department , £584,331, Increase ,£26,803. Castoma Department £46,899, increase £1315. n . Marine and Harbours, etc., DepartBest £54,44*. increase £ll:s. Printing and Stationery Department £40,446, increase £1676. Stamp and Deeds Department £JO,535, decrease £236, Education Department, £630, M», , increase £54 542. Mentel Hospitals and Charitable Department £81,412, increase *-f»f----'Department ot Labour £11,021. increase £176. Mines BepartßWrt£3s,Mo, increase £6851 Department oC Agriculture £112,m, increase 4139. Working Railways Department fcl,520,000, increase £48,173. Public Buildings and Domains Department £26,410, increase £142. Department £173,168, decrease £15,085. Police Department £133,206, increase £2530. Lands and Survey Department £169.109, increase £19,667. Valuation Department £29,23.->, decrease £72. . Total £6,960,713, increase £•"».- 011.

ESTIMATED REVENUE. 1 [eel justified in submiVthrg w estimate « *7,461,8W, which «s £11,; 530 in excess of the actual amount rf revenue received last year :- Customs, estimate lot f/ 662 000, increase on IM4-j «»,"»!}• Railways £2,210,000, increase i 22,tax £365,000, increase £12,"fncome Ux £262,000, increase *££ duty £<"°o, «*»» £7 iL." Registration and other fees 4108. 500. increase £5035. MjHiw £36 500, increase £3»O- - £300,000, increase revenue, £260,100, InCr Sn*kiS 9 ' Fund £65,000, Increase £IBOO. „„. Total £7,167,600, increase £121,550 I will now proceed to set down the, estimated results at the close of the current year: Our eslinrated expenditure is £9,060,713, our estimated revenue £7,467,600; excess of revenue over expenditure, £506,887 ; add the balance at the close of the past year, £761,036; estimated balance, £1 267 923. For transfer I<> Public Works Fund, say, £soii,o*">. education school buildings, salaries, etc., £IBO,OOO, development of natural motive power £50,000, irrigation water supply £50,000 ; total £750,000, balance £517,923. This balance will be, ot course, diminished by the amount appropriated hi Ibc supplementary estimates, »«• ,or subs«|quent assistance to the ways and means of the fubUe Works Fund,

FOURTEEN YEARS' RESULTS. The following table will be read with interest, showing as it -docs results of a most gratifying nature—reduced Customs and taxation, remission on railway charges and reduction of the public debt,' arid at the same time demonstrating our ability to give comfort to the deserving aged, and at the same time having credit balances, and beyond question proving the prosperous times we have bad and are enjoying :—(1) Amount transferred from Consolidated Fund to Public Works Fund, £1,355,000 ; (2) saving to the colony of aiinual interest thereon, £839,700 ; (3) amount paid for old age pensions up to March 31, 1905, £1,174,(105 ; (4) amount paid in reduction of publio debt, £IOO,OOO ; (5) reduction of iiV direct taxation through Customs in 1895, £715,605; (8) the same through Customs in 1900, £1,070,- j 361 ; (7) remissions ot revenue in , railway freights, etc., £680,000 ; to- I tal, £8,9X4,671. ASSISTANCE TO THE PUBLIC WORKS FUND.

The balance at credit of the Public Works Fund on March 31 last was £861,670, to be augmented by the balance of tlie 1901 loan not paid in, amounting to £93,937, and it is likely we shall be able to supplement this by transferring during the current year, say, £500,000 of our Consolidated Fund balance. This would produce ways and means to the amount ot £1,394,607. The Government have decided to ask the House to provide authority for raising £1,000,000 for railway construction and roads and bridges during the current year, full details concerning which will be subenitted by tbe Minister for Public Works.

GENERAL, In conclusion, having now placed, tbe finance of the colony before hon. members, it would be anticipating the impossible for me to expect every member would be satisfied, or that fault will not be found therewith; Tiie really strong and sound position of our finance is a matter for sincere congratulation, and adverse criticism under tbe circumstances would give ground for conclusion that there are those in politics whom It Is Impossible to please. Should existing prosperity continue, 1 have every tope in my next Budget of submitting proposals for reduction of taxation. An important departure will be found to have been made in this statement, finance alone being dealt with, the usual reference to the several State Departments being omitted. This change will, I hope, commend itsell to members, seeing that the fullest information concerning l Departments will be found fully set out in the Departmental reports submitted. Members will, I trust, strictly adhere to what is contained

ia the Statement, and confine their remarks entirely to rinance. By Uic Statement submitted, and supported ra every detail by figures, showing receipts and expenditure, I trust 1 may have dispelled once and for ever the conclusion hastily formed and thoughtlessly stated by many who ought to know better, that the credit balance or what is commonly known as the surplus, was simply a question ot book-keeping. I have said thoughtlessly with the desire of being generous to those who have from time to time nude statements, in my innocence believing that they would not wilfully cast reflection upon those deserving Government officers who are entrusted with th«j proper keeping of the accounts of the colony, and upon the Controller ami Auditor-General, who certifies to their correctness. The system o[ keeping accounts is the same to-day as that of many years ago, and virtually the same officers keep the accounts. If these statements arc repeated through the course of the debates. I think I am within my rights and it would not be unreasonable, to ask all those who challenge the present system of keeping! the accounts to show where ami how an improvement could be made, and above all I challenge them to demonstrate how they oould 90 juggle with figures as to prove a deficiency instead of the credit bala&cdfcrf i/7UI" 036. w^

It will not be questioned that £OOO,OOO was transferred from the Consolidated Fund to the Public! Works Fund. The, total cxpendituie out of the Public Works Fund last year Tras £1,282,378, and nearly half that amount was from revenue, and if the balance expended on. public works was subtracted from the crudit balance of £761,036, there would still be a handsome sugplus left. It is fi«,Mcntlj written and stated by ignore* persons that the non-ex-penditure of moneys on public works helps to swell the credit fcahnce of the Consolidated Fund. There ia no connection whatever between the two. There may be a million unexfiended in the Public Works Fuud, yot this would not increase the surplus in the Consolidated Fund by qne penny piec». 2»ow, unthinkingly, n very large number of persons, including some members of Parliament, w from time to time state that the increased indebtedness of tie colony is much greater than the colony can bear, or than the ability of the taxpayer to meet the. interest and charges mtailed. 15y the rcit <-aVr.n of this statement the credit of Hi" "colony is not improve 1 : ney. an infustice is don! to it

Tie |«>i»ilition "f iHo colony ol Marci 31. |m;, amounted to 90*,111 person:- : 'h'i sjross public debt at that tine was £5»,912.000, and the net debt £57,403.632 ; the gross debt per head was. £65 19s Od, and the net debt was £63 4s 3d. Imi aodition to the natural increase of <ho colony the excess of arrivals over departures for the year ending; Dec. 31, l'JOl, was 10,355. Between March 24, 19(M. and March 23, IUOo, the nomljer of persons who arrived in the colony under the reduce 1 .! passdjje scheme was 1751, and they brought capital amounting to £91,711, in addition to which they 'iiod a declarod annual income of £3396. Capitalising the annual income on a "> per cent, basis the total sum <>f declared capital taken out liy thesu persons was £172,631, and there mn be no dou))t tf»t many of them brought out a larger amount of cipital than ttwy named in the applications ; so it may be reasonably assumed that the actual amount ol capital brought Into the colon.* under the assisted immigration scheme exceeds £200,000. I may further a <l<l that undjer the. previous conditions, extending over a period of eleven years, 3391 persons came to tho colony, bringing with them capital and income equal to £'623,650, being an average per annum of 281 jiersons, and £.">6677 income.

Our ability tn meet our engagements has never been ijtiestioncd. This has t>een demnrtstratvd by increased returns from the railways, from lhi> income Lax, anfl especially by thtt tiii-jfi- amount of voluntary luxation suhscrilKd in the purchase of luxuries under the head of Customs aj.il excise duties. In the y, a rs IH9:W>4 it will be found ihiil :\fi'2t> persons i»uitl income: ia* amounting to £70,2.!7, .equalling £»! l.'is 8d iier taxjuayei- 1 in 1901-J the number ot persons paying income tax increased to S4HI. ami the antount increased to ii'i'A.'Xtl. which equals £2B 89 Gel per taxpayer. Whilst placing before members tile position of the Colony in a welt-merited rosy hue. I would warn you that it must not be lud on to extravasanrf'. We must ever lie careful and thrifty, leaving nothing to chance, nor doinjr an.\ tliinjf which would iei i our colony and its people into an embjirassod i>osilion. In olii r words, ti»e keynote of our safety iit a sound finance. We must l»; economical and keep expenditure wiViin reasonable limits, tf vi» <io s<> thetiroo will shortly arrive when we shall be able to make further reMissions of taxation. We must piv* to the people increased comfort ami something hrijt'tter to look forward to and hope for. Happily, our exjperiments havn so far proved snej cessful, and have i,i-e n largely copied Iby other <,oti-itrjes, and to-day even son* oi those wfeu itrtououely or-

posed them arc willing to concodo that what was done was in the best I interests of the people of our colony i nwl to the good of the Empire to which we unc proud to belong. ti'cr Press Association.) WELLINGTON, July 25. The following items ol general interest appear on the estimates : Okl age pensions £285,000 (an increase of £70,000 on tire amount voted last year), estimated expenses of coming general elections £26,250, Greater New Zealand Exhibition in Ohristchurch £IOOO, contributed to cool storage for dairy produce £2Ul)o (a decrease of £6500), naval training ship £100(1, purchase of small arms and cordite £32,000, Bisley. team expenses £1650. There is an increase of £SO in the salaries of practically all Magis- I iratesand in the '.alary of the Chief Judge. The Native Land. Court vote is re- ] duced by £20(1. i