DOMINION'S FINANCES.

Taranaki Daily News, 6 March 1916, Page 3

DOMINION'S FINANCES.

STATEMENT BY SIR JOSEPH WARD. J (From Our Own Correspondent.) Wellington, March 3. A statement regarding the finn.ncia.l position of the Dominion was made tonight by the Minister for Finance (Rt. Hon. Sir Joseph Ward). The Minister's figures showed that the revenue for tie eleven expired months of the current financial year exceeded by £1,474, Ml the revenue for the corresponding period of the preceding year, while the expenditure decreased by £104,772. "The public revenue for the twelve months ended February 29, miG, as compared with the twelve months ended February 28, 1915, shows an increase of £1,659.6911," said Sir Joseph Ward. The increase in various Departments totalled . £1,723,/50. Three accounts, Marine, Miscellaneous and Territorial' had decreases totalling £G4,160, leaving a net increase as stated above. "The revenue for the eleven months ended February 29, 1916 (the expired months of the current financial jear) as compared with the revenue f.i'r the corresponding months lof' the 19M-J5 year, showed a net, increase of £1,474,641. The revenue for the month of February, 1010; was greater, by £500,381 than the revenue for Fobvupry of last year. That is due principally to an increase of £325,368 in income tax, £100,247 in Customs, and £BO,BOO in railways. "The expenditure , for the eleven months shows a, net decrease of £164,772. There are decreases amounting to £265,794 under special Acts. Of that amount £150,000 is due to a repayment to the consolidated fund against an amount paid out in connection with the war. Eight of the Departments show decreases amounting to £208,135, and the increases of expenditure in eight others amount to £20!i,590. The growth of the expenditure of the Education Department, due to increased payments to teachers, accounts for £133,830 of that increase. There is also an increase of £102,507 in the charge for interest and sinking fund. "Treasury Bills, which stood at £IOO,OOO on February 28, 1015. have been reduced by repayments until they stood at the end of last month at £484,951. It will he seen that both in the reduction of expenditure in the permanent departments and in the clearing off of Treasury Bills a very gratifying improvement has been effected. ° "Coming now to the position of the Public Works Fund, the expenditure for the eleven expired months of the financVal year shows a decrease under eight headings. Public buildings. £38.405; lighthouses and harbor works, £390; tourist and health resort, £2371: immigration. £19,405; roads and bridges, £12,392; telegraph extension. £73,175: land improvement, £5356. The total decrease under these headings is £152,121, while the increases are: Public works departmental, £22,043; railways, £114.744: development of mining, £4103; contingent defence, £24,936; plant and material, £17.497. making a total of £173,323. The net increase of expenditure on the Public Works .icconnt, for the eleven months is £21.202. "Th« pozjiton of the Public AVorks Fund as r.n February 29. Wlft, •» exceedingly satisfactory. ' Theiv is ;i bahniefc of £1.!;55,200 available fo:- fnturi expenditure. The whole of that sum is represented by cash with the exception of an investment of £214.546 made in Imperial Government, Treasury Bills fallirg ike in March and Mav of the pre.-e.nt year. The Public Works Fund is in a very strong position, although it has ti be remembered that during the ccminif year a les-i amount will require to be exnended, in order that the requirement-, of the country may be reasonably provided for. The Minister for Public Works r.ssrres me that he antici- 1 pates no difficulty in keeping down the expenditure, as the reduction has been gradually prepared for. "With reference to the increase in the crd:nary revenue for the eleven months of the current financial year, I have indicated that all the main classes of revenue show a substantial increase. That increase is apparently due to the increased taxation which was imposed last session; but quitp apart from the extra taxation, the revenue in all the Departments except the three I mentioned (the decrease in the three instances was to be expected) shows a very satisfactory condition of things. I know of no reason why if should not continue during the last month of the financial year. "Money will be required to pay off the balance of the Treasury Rills prior to March 31, and there will be a charge, which T cannot state definitely at the moment, for the payment, of 'interest due in London before the end of the month. It is not possible for me to state with any certainty what the re-, eeipts and expenditure for the current month will be. But I have no doubt that after making the necessary provision for the payment of all current liabilities, with the Bills and" the interest due in London, there will be a surplus at the end of the financial year.

As against that surplus there arc large prospective liabilities for the year 1910-17 to be provided for. There will be a large charge for soldiers' pensions and the amounts required for interest and sinking fund must show a big increase owing to the borrowing in connection with the war. The position on the whole is very satisfactory, considering the conditions that prevail in the world to-day. We require to maintain the financial strength of the country at the highest possible level in order to be ready fo. the time when the restoration of peace and the resu'i>pt:'on of normal fir.i.ncial conditions bring about a stateof affairs that, anomalous as it may seem must necessarily be abnormal to a certain extent."