7

A.—4.

Expenditure.

The principal increases are accounted for as follows : — Permanent Charges.—A sum of £5,500 was applied in direct reduction of the debt, as against £1,500 in the previous year. Administrator and Government House. —The Acting-Administrator's salary, which was formerly charged to the Secretariat, was charged to this Department. Education.—Expansion of the education services resulted in increased expenditure on salaries and school equipment, the increases in salaries being over £1,000. Health.—Salaries paid increased by £1,000, and the balance of the increase is accounted for by higher purchases of liquor. Justice.—The increase is due to the appointment of a resident Chief Judge. Native. —Salaries paid to Native officials increased by approximately £1,500. Postal and Radio.- —Interest credited to depositors in the savings-bank increased by £415. Public Works :— Increases — £ Maintenance of roads . . .. . . .. . . 1,350 Waterworks .. .. .. .. .. .. 447 New buildings .. .. .. .. .. .. 4,905 New plant and motor-vehicles .. .. .. .. 1,127 New roads . . . . . . . . . . . . 1,515 £9,344 Decreases — £ Maintenance sea-walls .. .. .. .. .. 442 Stores for allocation .. .. .. .. .. 2,609 New bridges .. .. .. .. .. .. 2,769 New sea-walls .. .. .. .. .. .. 698 £6,518 Part of the increased cost of public works is due to an increase in the rate of pay of labourers and a reduction in working-hours. Secretariat. —Purchases of land were £3,057 lower, and items for the cost of the census and the Ministerial visit totalling £888, which appeared in the previous year, did not recur. The expenditure on the land-settlements scheme increased by £614. Treasury and Customs. —Appropriations for reserves for assets replacements and the 1937-38 building programme account for £9,500 of the increase. Increased subsidies to superannuation funds amounted to £574. A comparative statement of revenue and expenditure each year from 1925-26 is shown below :■ —

Head of Expenditure. j 1936-37. 1937-38. £ £ I. Permanent charges on public debt .. . . 11,331 15,060 II. Administrator and Government House 1,202 2,655 III. Education .. 5,619 7,539 IV. Health .. 19,636 22,579 V. Justice, Labour, and Public Trust .. .. 2,506 3,236 VI. Lands and Survey .. .. .. 1,552 1,649 VII. Native.. .. .. .. .. 6,810 7,820 VIII. Police and Prisons .. .. .. 8,922 8,669 IX. Postal and Radio .. .. .. 5,906 6,360 X. Public Works 28,039 31,436 XI. Secretariat .. .. .. .. 13,238 9,491 XII. Treasury, Customs, &c. .. .. .. 12,758 23,661 117,510 140,155 Less Public Trust and Labour 897 1,085 Departments recovered £116,613 £139,070

Revenue Expenditure Deficit Subsidy Final Surplus Year. obtained in the of the or from or 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 1931-32 .. .. 109,040 128,936* -19,896* .. -19,896 1932-33 .. .. 105,920 98,166 +7,754 .. +7,754 1933-34 .. .. 90,613 89,955 +658 .. + 658 1934-35 .. .. 78,808 76,505 +2,303 .. +2,303 1935-36 .. 111,867 100,736 +11,131 .. +11,131 1936-37 .. .. 117,909 116,613 +1,296 .. +1,296 1937-38 .. .. 139,450 139,070 + 380 „ + 380 * Includes expenditure on extra police : £27,374 in 1928-29, £19,448 in 1929-30, £16,561 in 1930-31, and £10,412 in 1931-32.