8.—6

III

It is thus evident that the economies introduced by the Government are beginning to take effect, and I am glad to be able to announce that the rapid annual increase in expenditure disclosed by the following table has been effectively checked :• — Expenditure of Ordinary Revenue Account under Appropriations for the Financial Years 1913-14 to 1921-22, inclusive. xr Tii a •_ Excess over Year. Expenditure. -r, , T t r Previous Year. £ £ 191.3-14 .. .. .. 11,825.864 743,826 1914-15 .. .. .. 12,379,803 553,939 1915-16 ~ .. .. 12,493.107 113,304 1916-17 .. .. .. 14,058,770 1,565,663 1917-18 .. .. .. 15,120,287 1,061,517 1918-19 .. .. .. 18,673,599 3,553,312 1919-20 .. .. .. 23,781,524 5,107,925 1920-21 .. .. .. 28,068,730 4,287,206 1921-22 .. .. .. 28,466,838 398,108 Interest and sinking fund charges increased during the year by £610,685, and scale increases to the salaries of State employees amounted to £226,443. The small net increase for the year is, however, more than set off by an asset in the reserve stock of coal held by the Railway Department. The decrease in the rate of expenditure is definite. Conditions, however, are such as to make it imperative that the present rigorous policy of economy must be adhered to, for safe finance demands that public revenue and expenditure should balance. Future expenditure must be subject to careful review, and constant pressure applied to ensure thatwnoney is spent wisely, also that the State receives full value for its expenditure. Permanent Charges for the Years 1913-14 and 1921-22. The expenditure on permanent charges compared with 1913-14 shows an increase of £8,638,072. Most of this increase is due to causes beyond administrative control, such as the late war and the effect it had on the cost of living, and also to normal expansion. The following items will show this more clearly:— Directly due to the war: — £ £ Interest and sinking fund on war loans .. 4,657,766 War pensions .. .. .. .. 1,722,596 6,380,362 Indirectly due to the war : — Increase to old-age, widows', military, and miners' pensions, due to increased cost of living . . 414,200 Butter subsidies .. .. .. .. 240,270 Increase in rate of interest on new loans and renewals .. .. .. .. 250,000 Increase in subsidies to Hospital Boards, due largely to increased cost of maintenance, food, drugs, &c. .. .. .. 276,172 Increase in subsidies to local bodies, necessitated by increased rating .. .. .. 73,214 — 1,253,856 Increases in — Old-age pensions . . . . .. . . 231,563 Education grants . . . . . . . . 90,000 321,563 Increase in subsidies owing to expansion : —■ National Provident Fund . . . . . . 61,275 Superannuation Funds .. .. .. 64,000 125,275 Epidemic pensions . . . . . . . . .. 72,500 £8,153,556 — i I'WIiMII |