THE BUDGET

Taranaki Daily News, 27 August 1915, Page 8

THE BUDGET

NATIONAL CABINET PROPOSALS. SIR JOSEPH WARD'S STATEMENT. By Telegraph.—Press Association. Wellington, Last Night, i In the presence of a full House tonight Sir Joseph Ward delivered the first Financial Statement of the National Cabinet, and received an attentive hearing'. The galleries were also packed. The Railway and Customs revenue did not reach the estimate made in last year's Budget. On the other hand, the actual revenue for tie year represents an excess of £219,1180 over the previous year's figures, while the total expenditure for the year was less than the estimate by £181,748. The result of the year's operations gives a net surplus of £72,1142. The total credit balance in the Consolidated Fund at the 31st March, 1015, was £149,047. It is necessary to deduct the balance carried forward from th» previous year—£426,9os, less £350,000 transferred to the Public Works Fund, or a net deduction of £76*905. The Government will have not only to face the prospect of a falling revenue, but will also have to provide far heavy additional charges on the Consolidated Fund to meet annual interest and sinking fund in connection with the wa* loans, war pensions, and similar obligations. It will be necessary to provide loan-moneys with which to carry on public' works and other services, the interest and sinking fund charges on which will further increaiSe annual expenditure out of Consolidated Fund. In view of these facts the Government would be failing in its duty if it did not this session make ample provision for raising sufficient additional revenue to enable it to meet its increased obligations. LOAN MONEYS. The requirements of the Dominion are classified under the following heading:-. (a) Loans for war expenses. (b) Loans for works contracted for. (o) Loans for works in progress and extensions. (A) Loans for works other than those referred to under headings (b) and (c). (e) Loans for redemption purposes. , Up to March 31 the war cost was, roughly, £2,750,000, including liabilities outstanding at that date, and the rate of expenditure necessarily increases in proportion to the number of men we put into the field. Moneys required under (b) and (c) relate chiefly to ■public works contracted for or in progress, and some correspondence took place with the High Commissioner as to the possibility of raising funds in the open market in London for the purposes , named- The prices quoted seemed to indicate that no pub-lic-works loan could be floated except on terms which were not sufficiently favorable to the Dominion, and the Government determined to utilise local funds to meet present requirements. The amount of deposits in the Post Office Savings-Bank has largely exceeded the amount of the withdrawals, thus providing a considerable amount of money for local needs.

With respect to (d)—loans for works other than those already referred to under headings (b) and (c)—the High Commissioner advised the Government that loans for these works would not meet with favor if placed on the London market. With regard to (e). I refer honorable members to the Budget of last session, .in which it was stated that during the period from the Ist July, ISI3, to 31st March, IMS, loans amounting to £ 10„129,005 would mature, and that no less than £8,727,709 would require to be redeemed by raising fresh loans. It was also mentioned that n sum of £'5,1i94,600 had then been borrowed, which would be sufficient to redeem loans maturing up to the end of November, 1014. By the end of November, 1914, £5.194,100 had been actually spent in redemptions, leaving a balance of £3,533;600, held outside of New Zealand, for which provision had to be made before 31st March, 1915. This balance has been provided for as follows:—•

Balance brought forward, April 1, 1914 £426,005. Receipts during year.—Revenue £12,443,525, other receipts .€8,420. Expenditure during year.—Appropriations £12,370,803. Excess of receipts over expenditure £72.142; transfer to Public Works Fund £3.50,000; balance, March 31, 1913, £149,047. PUBLIC WORKS FUND. The following is a statement of the receipts and expenditure:— £ Balance from last year 1,175,554 Receipts. Loan-money- £ Aid to Pubiic Works and Land Settlement Act, 1913 .. 217,778 Aid to Public Works and Land Settlement Act, 1914 .. 1,525,000 Premium on sale of stock 8,750 Transfer from revenue 350,000 Other receipts • 9,126 - 2,110,654 3,289,238 Expenditure— Under appropriations 2,557,295 Debentures redeemed 11,800 Other expenditure 24,381 Balance at March 31, 1915 • «695,762 Balanco loan-money to receive 1,475,000 Amount available with which to start current year .■ £2,170,762 •Note.—The balance on March 31 is made up as follows: — '£ Cash in Public Account 500,101 Imprests In hands of officers of Government 99,061 '£695,702 Loans amounting to £6,274,953 fall duo in London during the current year, but no great difficulty is anticipated in arranging for the renewal of these maturing loans. STATE ADVANCES OFFICE. The Government found it necessary to restrict the lending operations of this 1 office during the war, and the board has from time to time varied the limit) of

its advances so as to suit the circumstances of its finances, AMOUNTS OF ADVANCES PAID OVER DURING YEAR ENDED MAECH 31,1015 '£ Advances to Settlers 1,136,475 Advances to Workers 313,025 Advances to Local Authorities 336,293 £1,785,795 COMMITMENTS AS AT MARCH 31. 1015. r £ Advances to Settlers 2CT.157 Advances to Workers 70,040 Advances to Local Authorities 335,025 £082,422 CUSTOMS. The estimated Customs revenue for the financial year ended March 31, 1915, was £3,300,000. After August a consistent decline took place, and the total for the year was £3,167,283. A comparison of the revenue received during the months of January to May with the same months of 1914 makes it apparent that we must be prepared to face very much reduced receipts for the current financial year, the amount realised being £275,559 less than for the same period of last year. The comparative figures showing values of imports and exports for the calendar years 1913 and 1914 are as follows lr± 1913. 1914. 3. £ Imports 22,288,302 21,850,090 Exports 22,986,722 26,201,447 The exports for the financial years 1913-14 and 1914-15 were as follows: 1913-14. 1914-15 £ £ Exports 23,471,131 27,470,523 This great increase in exports in due to the exceptional prices obtained and to the larger quantities of goods exported. Tho figures are the highest ever recorded. POST AND TELEGRAPH DEPARTMENT, The Post and Telegraph Department has excellent results. The revenue received amounted to £1,353,443, exceeding that of the previous year by £95,006. The Savings Bank deposits reached a total of £11,904,323, and the withdrawals £10,603,018, while the amount standing to the credit of depositors w r as £19,048,029—an increase of £1,910,615. The money-order and postal-note business shows a steady increase, the total value of issues and sales respectively during the year reaching over £4,090,000. Tho telephone exchange business develops rapidly. The expansion of this business involved an expenditure of £288,395 out of the appropriation for telegraph extension. PENSIONS. The gross amoiuii. paid by way of pensions was as follows—Old age pensions £460,854, widows pensions £31,017, military pensions £47,010; total £540,081. The cost of the system per head of the European population is 0s Od. The pensioners on the roll at close of the year numbered 22,525.

FINANCIAL POSITION.

ESTIMATES OF REVENUE AND EXPENDITURE. The revenue for the year 1013-10, estimated on the basis of the existing statutory limitations, is as follows: £ Customs 3.800,000 Railways 4,000,000 Stamp and death duties .... 1,220.200 Postal and Telegraph ],3-l>">,000 Land-tax 700,000 Income-tax ' &-> »°<< Beer duty ; T24.000 Registration and other fees .. 100,000 Marine 50,400 Miscellaneous 410,000 Territorial revenue 210,000 Endowment reveuno 92,05-1 Total £11,070,240 The following figures will show the ways and means of the Consolidated Fund for the year 1015-10, estimating the revenue on the foregoing basis:— £ Balance forward from 1914-15 149,047 Estimated revenue, 1015-10 11,670,254 11,525,301 Estimated expenditure. 191510 12,053,242 Deficiency (without provision for war pension s , interest and sinking fund on war loans, additions to superannuation funds, and supplementary estimates 527.941 Stamp and death duties 1,220,200 in ESTIMATED REVENUE FOR 1316-10 AND THE ACTUAL REVENUE FOR 1914-15. Estimated Actual 1915-10 1914-15 ; Customs 2,800,000 3.1(i7,253 Railways 4,000,000 4.100,075 Stamp and death duties .... 1,220,200 1,417,207 Post and Telegraph .... 1,345,000 1,353,443 Land-tax 7.900C0 7'90,<G41 Income-tax ... 52i5,000 540,318 Beer duty .... 124.000 127,000 Registration and . other fees.. 100.00 101,020 .Marine 50.4(10 50,357 Miscellaneous 419,000 401,408 Territorial revenue 210.000 293,023 Endowment revenuo ... 93.045 75.770 Totals ... 11,070,245 12,44:!525