8.—6

Total State expenditure for roading purposes increased from £700,000 in 1923 to £1,946,000 in 1928. <£250,000 transferred from Revenue to Public Works Fund. £1,000,000 in debt charges saved annually through policy of using surplus revenues for capital charges and debt repayment. Gross public debt as at 31st March, 1928— £ Ordinary .... .... .... .... 139,329,644 War .... .... .... .... 71,970,636 State Advances .... .... .... 31,081,966 Discharged soldiers .... .... .... 9,014,006 £251,396,252 New loans raised during the year .... 8,022,499 Loans paid off during the year .... .... 2,477,136 Net increase for year .... .... .... .... £5,545,363 Net increase in debt— £ 1925-26.... .... .... .... .... .... 11,000,000 1926-27.... .... .... .... .... .... 7,000,000 1927-28 .... .... .... .... .... .... 5,500,000 Local debt reduction .... .... .... .... .... £1,960,620 German reparation-moneys applied solely in reduction of war debt, 1927-28 .... .... .... .... ... £366,370 War debt—Repayments in six years .... .... .... £9,887,887 War-debt charges show decrease during year .... .... £50,000 Ordinary debt two-and-a-half times as great as war debt, but costs taxpayer annually £1,250,000 less than war debt. No revenue Treasury Bills outstanding. London Loan, 1928 — £5,000,000 raised for — Public Works Fund (railway construction, telegraph, £ and telephone extension, &c.) .. . .... .... 3,000,000 Hydro-electric-power works .... .... .... 1,000,000 Railways improvement .... .... .... .... 1,000,000 £5,000,000 Loan was very favourably received and heavily oversubscribed. Success of loan a striking indication of the Dominion's financial reputation. In addition £5,000,000 of Consolidated Stock converted on favourable terms. Taxation — New Zealand income-tax on individuals among the lowest in the world. Customs duties —concessions last year represented very large sum. Until increasing productivity of country reflected in revenues, no further reductions of taxation practicable or safe.

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