A.—4.

Expenditure.

The variations are explained as follows : — Permanent Charges on Public Debt. —No direct payment in reduction of debt, as against £5,500 in previous year. Administrator and Government House. — General reduction of costs. Salary adjustment of approximately £300 in 1937-38 not required in 1938-39. Education.—Salary payments increased by £1,763. Reduction in all other items. Health.—Salary payments increased by £1,355. Increased purchase of stores and liquor, £1,226. Balance of increase due to additional general expenditure due to greater number of patients treated. Justice, &c. —A full year's salary for the Chief .Judge was paid, as against a portion of a year's salary in the previous year. Lands and Survey. —Salary payments £273 greater. All other items increased on account of extra work done. Native.—Salary payments £476 greater. Office expenses £177 greater. Police and Prisons. —Salary payments reduced by £500. Increases : Purchase of fire-fighting plant £800, and rations £577. Latter due to exhaustion of prison plantations and increased ration scale. Postal and Radio. —New power plant for radio station, £750. Public Works : — Main reductions — £ Maintenance of bridges .. .. . . . . . . . . 300 Maintenance of buildings .. . . . . . . . . 945 Maintenance of roads .. .. .. . .. ..1,778 New buildings .. .. . . . . . . . .1,547 New bridges . . . . . . . . . . . . 276 Plant and vehicle purchases .. . . .. . . 1,930 New roads . . . . . . . . . . . . . . 2,563 Sea-walls .. . . . . . . . . . 250 Capital expenditure, hydro . . . - . . 278 £9,867 Main increases— £ Salaries . . . . .. . . . . . . . . 276 Sanitation . . .. .. . . . . . . .. 271 Storm damage, roads and bridges . . . . . . . . 2,984 Hydro : Stores purchases and installations . . .. . . 429 Hydro : Storm damage .. .. .. . . . . .. 381 £4,341 Secretariat. —Land purchases were nil, as against £2,213 in 1937-38, arid various small items charged in that year totalling £225 did not recur. Expenditure on defence, a new item, totalled £1,650. Pares to and from New Zealand increased by £331, and land-settlement expenses were £240 greater. Treasury and Customs. —No amount was transferred to reserves, as against £13,500 in the previous year. Superannuation subsidies were £425 lower.

2 -A. 4.

9

Head of Expenditure. I 1937-38. j 1938-39. £ £ I. Debt charges .. .. .. .. 15.060 9,707 II. Administrator and Government House .. 2,655 2,155 III. Education .. .. .. .. 7,539 8,553 IV. Health .. .. .. .. 22,579 25,904 V. Justice, Labour, and Public Trust .. .. 3,236 3,318 VI. Lands and Survey .. .. .. 1,649 2,125 VII. Native.. .. .. .. .. 7,820 8,433 VIII. Police and Prisons .. .. .. 8,669 9,424 IX. Postal and Radio .. .. .. 6,360 7,031 X. Public Works .. .. .. .. 31,436 25,556 XI. Secretariat .. .. .. .. 9,491 9,025 XII. Treasury, Customs, &c. .. .. .. 23,661 8,769 140,155 120,000 Less recoveries, Public Trust and 1,085 767 Labour : £139,070 £119,233