380
THE NEW ZEALAND GAZETTE.
It will be seen from the above Abstract that the Ordinary Revenue of the year 1865-6 amounts
to £903,360 Os. 9d.; that the Expenditure charged against the Receipts is as follows:-
I. -General Charges... ... ... ... £ 417,776 18 8
II. -Provincial do. ... ... ... ... 177,973 18 4
III. -Unauthorized Expenditure of former years ... 167,534 7 1
Total Expenditure ... ... ... £763,285 4 1

And that the sum of £140,074 16s. 8d. remains as Surplus Revenues.
The Unauthorized or Supplementary Expenditure belongs to the following years :-
1862-3 ... ... ... ... £ 5,287 1 2
1863-4 ... ... ... ... 36,090 5 7
1864-5 ... ... ... ... 126,157 0 4
£167,534 7 1

In reference to the Surplus Revenues, amounting to £140,074 16s. 8d., (see page 57), they would,
under the rule formerly in force under the Constitution Act, have been distributed among the Provinces in
proportion to the amount of Ordinary Revenues collected in each, so that every Province would have
received a share; but, under the law as it now stands, the three Provinces, Marlborough, Otago, and
Southland, are entitled to no portion of the Surplus Revenues of the financial year 1865-6, while
the other Provinces have their share of the Surplus Revenues increased by a fictitious sum of £9,428
17s. 9d. (see page 57); and this excess has to be made good out of the future Revenues of those Provinces
which are entitled to no portion of the Surplus Revenues of the financial year under consideration.

Thus, the Province of Marlborough is debited ... ... ... £ 6,623 13 11
Do. Otago do. ... ... ... 310 19 4
Do. Southland do. ... ... ... 2,494 4 6
Making altogether ... ... ... £9,428 17 9

It is further to be observed, that the General Assembly has provided no funds out of the Revenues of
the year 1865-6 from which this excess can be at once distributed among the Provinces of Auckland,
Taranaki, Wellington, Hawke's Bay, Nelson, and Canterbury.

Unless further provision be made, payments should be deferred until the Provinces of Southland and
Marlborough have sufficient Surplus Revenues to meet their liabilities on this account.

Attention is called to these financial arrangements, as the over-payments on the 30th June, 1866,
had increased to £56,858 15s. 10d. At page 81, "Surplus Revenue Account," it is shewn, that of
this sum Marlborough is indebted £7,403 8s. 5d., Otago £40,270 15s. 1d., and Southland £8,489 4s. 6d.
The charge against the last Province is exclusive of the debt of £43,007 9s. 9d. due to the Colonial Chest
for advances in aid of the Provincial Revenues. (See Separate Account, page 82.)

The foregoing remarks take in review the whole of the Ordinary Revenue and Expenditure of the
Colony, as regulated by the Surplus Revenue Act. It is necessary however to observe, that in addition to
the Unauthorized Expenditure of former years, shewn in the foregoing Revenue Account, a further sum of
£61,019 Os. 9d. (a) was expended without the authority of law during the financial year 1865-6, now
under consideration.

This Unauthorized or Supplementary Expenditure the Colonial Treasurer does not shew as a
charge against the Ordinary Revenues, but holds it in suspense (b) until the General Assembly shall
have granted a vote to cover it.

Turning now to the Expenditure under the different heads of service, the following observations
are given in explanation:

1. Civil List, (page 3).--In former years the savings on the Civil List were carried to the credit of the
   Ordinary Revenue Account; in the present year a different course is adopted. The balance (£1,772 18s. 6d.)
   is transferred to a Deposit Account called the Civil List Fund Account, (pages 68 and 89), to meet
   outstanding liabilities of the Civil List. This arrangement seems correct, as the grant is payable to
   Her Majesty, and is accounted for to the Lords Commissioners of the Treasury.

Native Purposes. The Expenditure under this head is, altogether, £34,631 16s. 4d., (page 21),
of which sum £6,123 13s. 2d. is charged against the Civil List, (page 3).

Permanent Charges.-Half Million Loan, 1856, (page 5.)-"The New Zealand Loan Act, 1856,"
divides the Loan into three parts. The first division (£200,000) is charged on the Revenues of the Middle
Island. The second division is charged against the General Revenues of the Colony. The third division is
charged against the Provinces of the Northern Island, with the exception of £36,000 allocated to the
Province of Taranaki for the purchase of Native lands, at present charged against the General Revenues.
Of this last sum, (£36,000), only £4,117 13s. 10d. has been applied to the extinguishment of Native Titles
to land in the Province of Taranaki; the remainder is being used as part of the working balance of
the Treasury.

The total charge for Interest and Sinking Fund on the Half Million Loan is £30,000. Of this sum,
£9,360 becomes a charge on the General Revenues; the remainder, (£20,640, page 5), is a charge on the
Provinces, and is usually paid out of the respective Land Funds.

(a.) See pages 57 to 61 "Supplementary Expenditure Account."
(b.) See Debtor Balances, page 93, "Supplementary Expenditure Account."