B.—6

Two instalments, however, amounting to £103,669 6s. srl. have recently been paid into the Public Account, and it is intended to apply these receipts to reduction of the war debt. PUBLIC DEBT. The gross public debt at the 31st March, 1925, was £227,814,647, as compared with £221,616,361 twelve months previously. The debt is allocated as follows : — £ Ordinary .. .. .. .. .. 119,936,859 War ' .. .. .. .. .. 76,631,722 State Advances .. .. .. .. 21,436,180 Discharged-soldiers settlement .. .. .. 9,809,886 £227,814,647 The increases are — £ Ordinary debt.. .. .. .. 2,646,320 State Advances .. .. .. .. 4,335,658 Discharged soldiers .. .. .. .. 18,770 £7,000,748 while war debt has been reduced by £802,462, leaving the net increase in the gross debt at £6,198,286. It will be seen that out of the increased debt of £6,198,286 the State advances to settlers and workers absorbed £4,335,658, or 70 per cent. The total borrowed for ordinary debt purposes was £4,725,243, but by redemptions out of Ordinary Revenue Account, £1,081,215, and from other accounts, £997,708, the increase in ordinary debt for the year was reduced to £2,646,320. Accrued sinking funds held amounted to £13,462,839, leaving the net debt at £214,351,808, as compared with £208,642,333 —the increase in the net debt thus being £5,709,475. The movement in the gross debt during the year is shown by the following : — £ Raised for redemptions during 1925-26 .. .. 64, 680 New loans raised during the year for— Public works .. .. .. .. 3,000,000 Waihou and Ohinemuri Rivers improvement .. 50,000 Discharged soldiers settlement .. .. 22,870 Education Loans Account .. .. .. 540,000 Hauraki Plains settlement .. .. .. 70,000 Native Land Settlement Account .. .. 289,324 Rangitaiki Land Drainage Account .. .. 37,100 State forests .. .. .. .. 100,000 Swamp-drainage .. .. .. .. 90,000 State Advances—Settlers Branch .. .. 2,925,000 State Advances —Workers Branch .. .. 1,500,000 Charges and expenses — Public works .. .. .. .. 547,451 Land for settlements .. .. .. 1,168 State Advances —Settlers .. .. 103,355 State Advances —Workers .. .. 107,304 £9,448,252

Public debt,

4—B. 6.

17