A.—4.

Salaries were restored to their former level as from Ist July, 1936, with a resulting increase m expenditure for all Departments. The principal increases in expenditure apart from salaries are accounted for as set out below Permanent Charges.—k sum of £1,500 was applied in reduction of loan indebtedness in addition to the ordinary sinking-fund payment. Health Department.—lncreased purchases of stores (including liquor) and of rations for patients amounted to approximately £1,000, while there were corresponding increases m other items due to an increased number of patients receiving treatment. Lands and Survey—An additional surveyor was appointed to the staff during the year. Native— The Fono of Faipule held in October lasted for a longer period than usual, and increased allowances to the Faipule resulted in an increase of £760 in Fono expenses. Postal and Radio.—The principal items under which additional expenditure was made were— Interest to depositors, savings-bank, £150 ; and telephone replacements, £267. Public Works. —The principal items showing additional expenditure are— Maintenance of buildings Maintenance of and purchase of furniture Maintenance of roads Maintenance of sea-walls New buildings .. •• •• •• I>3®6 New bridges ■ • • • • • • • ■ ■ •' "' Roads (new work) .. 677 Sea-walls (new work) 530 Electric installations 004 Hydro-electric working-expenses • 2 24S Reduced credits-in-aid £9,174 Secretariat. —Land purchases increased by £1,265, an amount of £655 was expended on a new land-settlement scheme, and the visit of the Ministerial " goodwill' party caused an expenditure of £579. The reduction in the expenditure for the Administrator and Government House is due to the non-appointment of an Administrator since the departure of General Sir H. E. Hart in Juiy, IiMO. Treasury and Customs expenditure is less, owing to there being no expenditure on the printing of new stamps during the year. A comparative statement of revenue and expenditure each year from 1925-26 is shown below

8

Revenue Expenditure Deficit Subsidy Final Surplus Year. obtained in the of the or from Territory. Territory. Surplus. New Zealand. Deficit. £ £ £ £ £ 1925-26 128,638 145,687 -17,049 21,400 4,351 1926-27 " 113 812 141,710 -27,898 20,000 - 7,898 1927-28 :: .. 106,038 143,421 -37,383 20,000 -17,383 1928-29 121,904 157,829* -35,925* 47,374* +11,449 1929-30 .. 131,416 150,728* -19,312* 39,448* +20,136 1930-31 130,385 140,288* — 9,903* 21,000 +11,097 S-3 :: ■■ MM» 128,». -19,896« .. ;1, « 1932-33 .. .. 105,920 98,166 +7,754 .. + 7,754 1933-34.. .. 90,613 89,955 + «58 .. J 1934-35.. •• 78,808 76,505 +2,303 .. 1935-36 .. •• 111,867 100,736 t }'JS 1936-37 .. 117,909 116,613 + 1,296 .. + 1,296 * Includes expenditure on extra police : £27,374 in 1928-29, £19*448 in 1929-30, £16,581 in 1930-31, and £10,412 in 1931-32.