FINANCE.

Taranaki Daily News, 21 March 1921, Page 5

FINANCE.

PREMIER REVIEWS POSITION. MONEY FOR URGENT WORK ONLY. “THE POSITION QUITE SOUND.’’ By Telegraph.—Press Association. Wellington, March 19. The Premier, as Minister for Finance, has issued statements showing: (a) Revenue and expenditure for the eleven months ended February 28, 1921; (b) a statement showing the position of the Public Works Fund on February 28, 1921, <c) a statement of the actual revenue and expenditure for the twelve months ended February 28, 1921. For the efeven months ended February 28, 1921, the revenue collected under various headings was £20,880,887, and the expenditure brought to charge for the same period was £24,210,741. On March 31, 1920, the available means for public Atorks was £219,502. Additional funds had been received from various sources, making the total for the qleven months £3,140,510. A further sum will be transferred from the Consolidated Fund of £140,000, and under the Finance Act, 1920, the sum of £250,000 will be raised, making a gross total available for the year 1920-21 of £3,530,510. The expenditure under appropriation for the eleven months, excluding separate accounts having ways and means of their own, was £2,160,669. The estimated expenditure for the remainder of the year is £1,099,715, a total of £3,2’60,384, and the estimated balance on March 31, 1921, is £270,126. It will thus be seen that a large sum has been fouond for public works during the past eleven months, but it w ; ll be necessary 1.0 confine expenditure during the coming year under this heading to urgent and pressing works only. STATE ECONOMIES. For the twelve months ended February 28, 1921, the revenue amounted to £32,419,566 and the expenditure to £27,794,773. The increase in Customs revenue was due largely to the fact that overseas manufacturers were able to fulfil outstanding and current orders with a rapidity which was not anticipated by importers, many of whom are now overstocked. It is therefore certain that imports will be greatly reduced during the coming year, and the Customs revenue will be reduced in proportion. The post, telegraph, and railway revenues show increases on account of the additional charges imposed in order to meet the payment of higher

wages and bonuses arising out of the increased cost of living. Close oversight has been maintained over expenditure, which is within the appropriations, but with a prospect of reduced revenues it is necessary that the utmost economy should be practised in connection with all State activities and administration. At March 31 last the accumulated surplus amounted to £17,500,'000. This surplus is being utilised^for discharged soldiers’ settlement and other purposes for which loans would otherwise have been necessary. The Public Debt has thus been saved a very large increase, and the taxpayer has been relieved of annual interest and sinking fund charges which' would amount to, roughly, £1,000,000 per annum. The allocation of accumulated surplus in this manner also provides investment, which produces interest at the rate of 4 per cent, per annum. NECESSTY FOR PRUDENCE. Mr. Massey proceeded: “I anticipate there will be a surplus at March 31 next, but an excess of Customs revenue will, to a great extent, account for this. It is certain Customs revenue will show, a large drop next year, and I propose to carry as much as possible of the surplus forward to assist in tiding over that portion of the year, when, even under normal conditions, the expenditure usually largely exceeds the revenue. Heads of departments have been instructed that they must make savings whenever possible. Large savings have already been made, and further economoies are being effected. For instance, the temporary staff, which at April 1, 1919, totalled 1069, has been reduced to 388 at December 31, 1920, while as a result of legislation passed last session which authorised transfers from the accumulated surplus referred to above, our annual interest and sinking fund charges will be considerably reduced. “In the last Budget I issued a warning as to the necessity for caution in both public and private finance, and pointed out that we must be prepared to face troubles and difficulties with which an inevitable reduction in the volume of money would be attended. The conditions have changed as anticipated, and the position has to be faced. I do not, however, regard the outlook as a couse for discouragement, but rather a? an opportunity to exercise the virtues of prudence and good judgment. The figures I have placed before you indicate that the financial position of the Dominion is quite sound, and our ability to meet all our obligations is unquestioned. Special measures are not so much required as the practice of economy, hard work, and the co-operation of ail classes of society. If we co-op-erate intelligently in maintaining the productive activities of this country, the temporary difficulties to which I have referred will be easily overcome.’’