Encl. 2
MEMORANDUM ON THE ESTIMATES FOR THE FINANCIAL YEAR 1950/51.
PART I.
Financial Year 1948/49.
PRESENT FINANCIAL POSITION.
The Accountant-General's Report for 1948/49 has just boon issued and gives details of the financial position on the 31st March, 1949. The actual revenue for the year in question amounted to $194,933,955, being $43,526,005 in excess of the estimate. The expenditure figure was $159,954,023, which was $9,669,918 in excess of the estimate. estimate. The surplus on the year's working, therefore amounted to $34,979,932, but to this must be added a sum of $100,355 representing the net appreciation on investments to middle market value on the 31st March, 1949. This brings the actual surplus for the year to $35,080,287.
All Heads of revenue showed an excess over the estimate which was prepared when there were some indications of a falling off of trade, and due allowance was made for this. Trade did show some recession during the carlier part of the year, but later the trade returns reached rocord figuros. This was reflected in the revenue figures which consequently showed excesses under all the Heads.
The excess of expenditure over the estimate was mainly due to the grant of occupation period pay to members of the Government service who were not interned. Payments on this account amounted to $11,586,380 during the course of the year. There was also an increase in the rates of cost of living allowance which resulted in an excess over the estimate of $2,303,766, but these excesses were off-set by savings under a large number of Heads, the most important one being under Public Works Extraordinary and amounting to 38,034,359.
The general revenue balance carried forward to 1949/50 was $72,143,683, made up as follows:-
General Revenue balance at 31.3.48.
• •
$37,063,396
Surplus 1948/49.
Appreciation on investments.
• •
Total:.
•
34,979,932
100.355
.$72,143,683
Financial Year 1949/50.
The actual revenue and expenditure for the financial year just ending will not of course be known for some time, but the revised estimate of revenue is $248,523,927 and of expenditure $185,550,253. It was always contemplated, howevor, that the normal annual payments to the Sinking Fund of the 32% Rehabilitation Loan would be supplemented in good years, as without such additional contributions the fund would not be adequate to redeem the issue in full on the appointed date.
It is, therefore, proposed to invito Finance Committee to allocate 85 million as an additional payment to the Sinking Fund and, if this is approved, the surplus on the year's working is expected to amount to just under $58 million.
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