8.—6.

After allowing for the revenues accruing to the Main Highways, Electric Supply, and other Accounts, it is estimated that balances carried forward on Ist April last, together with amounts received for investment from the Post-office Savings-bank and other departmental sources, will be sufficient to provide all that is required for this programme, but so long as there are men or machines able to carry out the work, and the necessary materials are available, the Government will not allow any necessary job to be held up for want of money. The Government's policy is to obtain the maximum utilization of the available production resources of the Dominion, and if the existing volume of credit is insufficient or not utilized to this end, further credit as required will be made available. PUBLIC ACCOUNTS. The generally prosperous condition of the Dominion throughout the year resulted in the revenue exceeding the estimates, while expenditure, it is satisfactory to note, shows a substantial saving compared with the relative appropriations. The actual surplus for the year, as has already been publicly announced, was £472,000, compared with £281,800 for the previous year. The public accounts having already been published, it is unnecessary for me again to review them in detail, while] [particulars of both revenue and expenditure, as compared with the Budget estimates and with the results of the previous financial year, are attached to this Statement. The year's transactions may, however, be summarized as follows : — Summary of the Year's Operations. Revenue. £ £ Taxation . . . . . . . . 26,941,000 Interest .. .. .. .. 2,387,000 Other receipts .. .. .. .. 1,819,000 31,147,000 Expenditure. Permanent appropriations — £ Debt services .. .. 9,380,000 Exchange .. . . 1,581,000 Highways .. .. .. 2,509,000 Other services . . . . 618,000 14,088,000 Annual appropriations — Social services .. .. 9,913,000 Other services .. .. 6,674,000 16,587,000 — 30,675,000 Surplus .. .. .. .. .. .. £472,000 It will be observed in comparing these results with those of former years that both revenue and expenditure are now on a higher level than previously. This is accounted for principally by the implementing of the Government's policy of extending the scope of State activities, the increased cost of social services, and the restorations of the " cuts " in salaries and wages of Government employees. The practice of drastically reducing salaries and wages at the outset of a depression has been tried with results of which most of us have been made painfully aware. It is realized now that, apart from other considerations, a policy of deflation involves such widespread reduction in purchasing-power that

Source of funds.

Surplus for year.

Summary of year's transactions.

Salaries and wages.

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