FINANCES OF NEW ZEALAND

Press, Volume LXXIV, Issue 22505, 13 September 1938, Page 10

FINANCES OF NEW ZEALAND

Minister’s Review Of

First Five Months

“IN VERY HEALTHY

STATE”

Close Adherence To

Budget Estimates

[From Our Parliamentary Reporter.l

WELLINGTON, September 12

The Minister for Finance (the Hon. W. Nash) made a statement in the House of Representatives tonight covering the Public Accounts for the first five months of the current financial year, saying that it was evident from the results that the Budget" estimates were being very closely adhered to. He gave the following summary of the revenue position from April 1 to August 31, with the figures for 1937;

It would be seen from these statistics added Mr Nash, that the lota, revenue to date was £10.540,000. compared with the total of £10.531,000 received during the same period lasi financial year. A small increase was thus indicated, though members would recollect that the Budget provided ior a reduction for the year of £214.000. The Minister added that the pei - centages of both total revenue and revenue from taxation were being re ceived at the same rate as obtained last financial year. There were •minor variations in the various items which constituted the total revenue, but on the whole there was remarkably close adherence to last year’s percentage reSU “While, therefore,” said Mr Nash, “the revenue position to date is most satisfactory* I am not unmindful of the fact that the greater part of the financial year has still to run, and that one of the largest items ot revenue —income tax—is not payable until next March. The latest estimate of income tax, however, based on actual returns received, justifies me in adhering to the Budget estimate.”

Expenditure

Referring to expenditure chargeable against the ordinary revenue account of the Consolidated Fund, Mr Nash gave the following comparative summary of the position from April 1 to August 31, with the figures for 1937:

These results indicated a total expenditure to date of £12,511,000, compared with £12,215,000 for the same period last financial year. The increase was thus £296,000, while provision was made in the Budget estimates for increased expenditure of £538,000 for the whole year. In comparing these results, however, regard must be had to certain, accounting fluctuations, which had a direct influence on the position. Thus expenditure was normally heavier towards the end of the financial year than during the earlier months, while certain items, debt services, for instance, were subject to substantial variation, according to the date of debt repayments, etc. The position on a percentage basis in regard to expenditure compared favourably with that of last year. “Reviewing the whole position,” said Mr Nash, “and allowing for accounting fluctuations and other influences, it is clear that both revenue and expenditure to date are adhering very closely to the Budget estimates, and fully justify me in stating that the Dominion’s finances are in a very healthy state.”

Taxation — Customs Beer duty Sales tax Highways Stamp and death duties Miscellaneous 1938. £ 3.926.000 383.000 1.255.000 1.354.000 1.166.000 1,216,000 1937. £ 4.174.000 337.000 1.303.000 1.236.000 1.273.000 832.000 Totals Interest Other receipts 9.300.000 507.000 733.000 9.155,000 545.000 831,00) Grand total .. 10.540,000 10.531,000

1938. 1937. £ £ Permanent appropriations— Debt services .. 2,283,000 3,129,000 Highways 1,309,000 1,101,000 Exchange 584,000 662,000 Other services 72,000 159,000 Total 4,248,000 5,051,000 Annual appropriations— Social services 5,133,000 4,615,000 Other votes • . - 3,130,000 2,549,000 Total annual appropriations 8,263,000 7,164.000 Grand total .. 12,511,000 12,215,000