PUBLIC ACCOUNTS

Press, Volume LXXXII, Issue 24897, 10 June 1946, Page 4

PUBLIC ACCOUNTS

Surplus of £1,254,000 REVIEW BY MINISTER

“It is gratifying to be able to announce to the public of New Zealand that after a year of careful administration, the country’s accounts again reveal a sound position,” said the Act-ing-Minister of Finance (the Hon. D. G. Sulivan) in a statement last evening. “The Consolidated Fund, which reflects mpst of the Government’s activities, shows a surplus for the year of £1,254,151 0s 7d, being the balance from revenue totalling £58,506,000 and expenditure of £57,275,000. These figures compare very favourably with those of the previous year and with what wasproposed in the Budget last session. The comparative figures are: ' CONSOLIDATED FUND i RECEIPTS

“It will be noticed,” said the .Minister, “that receipts under practically all headings are in excess of those for the previous year and of the Budget estimate, the only exception worthy of note being income tax, where the amount, though greater than for 194445, failed to reach the estimate by some £534,000. “Expenditure is very close to the estimate, being less than what was anticipated by £lB,OOO. The expenditure under the permanent appropriations was higher than estimated, but this was more than offset by reductions under the annual votes, where the only real field for savings exists.

“In the case of the Social Security Fund,” said Mr Sullivan, “as will be seen from the tables, the expenditure, while close to the estimate, is substantially above that for the preceding year, but this reflects the increased benefits approved by Parliament during last year. The additional cost has been met partly from the increased revenue from the social security charge and partly by increasing the transfer from the Consolidated* Fund. WAR EXPENSES ACCOUNT RECEIPTS

“I do not propose at this stage,” said Mr Sullivan, “to comment extensively on the War Expenses Account. It is interesting to note, however, that expenditure for the year at £134,645,000 approaches the figure of £121,249,000, plus gratuities £18,000,000, a total of £139,249,000 referred to in the addendum to the Budget, and these latter figures covered • expenditure up to the point of demobilisation which it was realised would not be completed until part way through the current financial year. “Reverting to the position as now disclosed by the* accounts for the last year, it will be seen that the full amount estimated to be required for gratuities has been paid out, having been transferred in total to the Post Office Savings Bank for allocation to the individual gratuity accounts. “Another major item appearing in the War Expenses Account is a transfer to Loans Redemption Acccount of £27,500,000 Of this amount £22,500,000 was utilised to nay off the debt owing to the British Government under the Memorandum of Security Agreement and the balance for redemption of ordinary war debt in New Zealand. The moneys for the Memorandum of Security payment were found mainly from funds in the War Expenses Account, £14.500,000 being utilised in this way. the balance of £8.000.000 being financed by the issue of Treasury Bills as shown on the receipts side of the above table. Increase in Public Debt “Apart from the loans redemption item, the expenditure out of the War Expenses Account was £107,145,000 which is slightly in excess of the original Budget estimate of £105,400,000, the latter amount, of course, being intended for carrying on the war. whereas the expenditure as actually incurred

covers in substantial part the settlement of immediate outstanding war liabilities. “In addition to the loans raised for war purposes,” said the Minister, “the Government’s borrowing for other purposes during the last year involved £12,980,000 as set out in the National Development Loans Account-in the accounts now being published in the Gazette. This amount was borrowed for various public works during the year as compared with £11.148,000 the previous year, but the amount so raised and applied for capital purposes is still well within the programme of £16,650,000 as authorised

by Parliament in the Appropriation Act last session. The effect of’ this and the borrowing for war purposes of more than .£37,000,000 earlier in the year, less the redemptions during the year, has meant a net increase in the Public Debt of £21.273.178. and particulars of this will be set out in the more detailed accounts which will be laid before Parliament early in the forthcoming session. “I think it will be agreed.” concluded Mr Sullivan, “that the accounts for the last year reflect a further period of prudent administration of the public finances.”

Actual Budget Actual 1945-46 1944-45 1945-46 £000 £000 £000 Taxation— Customs .. 8.472 8.500 8.800 Beer duty . 2.074 2.100 2,309 Sales tax .. 4.064 4.200 4.506 Film hire . 128 125 134 Highways Stamp duty Land tax . 1.830 2,126 2,324 3.882 952 2,250 930 2.802 937 Income tax 25.696 27.000 26.466 Miscellaneous 101 100 93 Total taxation 45.689 47.331- ' 48.371 Interest recoveries from trading activ5,403 5.857 itles 5.364 Other receipts 3.195 4.560 4.278 Total receipts 54,248 57,294 58.306 EXPENDITURE Permanent Appropriations; Debt services 21.384 22,422 22,796 Other special Acts 6.604 2,574 2,704 27.988 24.996 25,500 Annual Appropriations: Social services 16,243 21,233 21,302 Other votes 8.802 11.041 10,450 25.045 32.274 31,752 Total expenditure 53,033 57.270 57,252 Surplus .. 1,215 24 1,254 54.248 57.294 58,506

SOCIAL SECURITY FUND / Social security charge Registration Fee and miscellaneous RECEIPTS Actual 1944-45 3000 13,664 613 Budget 1945-46 £000 13,750 751 Actual 1945-46 £000 14,557 729 Transfer from Consolidated 14,277 14,501 15,286 Fund 4,500 7,000 7,000 Total 18,777 21,501 22,286 EXPENDITURE Monetary 16,552 benefits Medical and Hospital benefits and adminis13,428 16,571 tration 5,904 6,000 6,408 Total 19,332. 22,571 22,960

War TaxationActual 1944-45 £000 Budget 1945-46 £000 Actual 1945-46 £000 Income tax Stamp duty 8,562 9,000 8,822 (estate, gift duty)' 5.060 5,100 5,024 Customs 2,788 duties .. 2,814 2,861 Beer duty 1,535 1,560 1,713 Sales tax . 9,539 9,826 10,559 Postage National 600 600 600 Security tax 20,527 20,600 21,738 Miscellaneous 121 100 100 Transfer from Consolidated 48,732 49,600 51,417 Fund Lend Lease 6,200 — — and Canadian Mutual aid 24,546 20,500 26,837 Memorandum ’ of Security New Zealand 8,480 3,500 3.538 Borrowing Advance sub — 25,000 scriptions National Dr.1,555 — Savings 10,252 9,327 Stock issued Treasury 37,241 — 16.318 bills issued Disposal of — 8.000 surplus - assets 3,478 6,000 11.270 Rehabilitation 118 —. 369 Miscellaneous receipts 1,489 800 1,405 Total 138,981 105,400 128,481 EXPENDITURE Navy 6,639 6,000 • 6,015 Army 50,969 38,000 24,017 Air 33,283 31,400 32,122 Ancillary 4,890 4,000 1,640 Rehabilitation 1,243 2,000 2.573 Gratuities .. Reverse lend — — 18.000 lease Loans re26,735 24,000 22,778 demption . 6,250 — 27,500 Total .. 130,009 105,400 134.645