DOMINION'S FINANCES

Chronicle (Levin), 10 June 1946, Page 3

DOMINION'S FINANCES

-Press Association

Minister fflakes Review CAREFUL ADMilSTRATION

Bv Telearavh-

CHKISTCHURCH, June 9. ' ' It is gratifying, ' ' said Hon. D. Gr. Sullivan, Acting Minister of Finance, in a statement tonighfe, " to be able to aunounce to the public of New Zealand that, foliowing a year of careful adminiatration, the country's accounts again reveal a sound position. "The Conaolidated Fnnd "vvhicli re flecta moat of the Government 's activities, shovva a surplus for the year.of £1,254,151 Oa 7d, being the balanee from revenue totallmg £58,505,000 and expenditure of £57,252,000. Theae ligurea conipare very favourably with those of the previoua year and with what "waa proposed in the Budget laat aesaion, aa set out in the attached atatement. CONSOLIDATED FUND. Receipts. Customs: Actual 1944-45, £8,472,000; Budget 1945-46, £8,500,000; actual 1945-46, £8,800,000. Beer Duty: £2,074,000; £2,100,000; £2,309,000. Saies Tax: £4,064,000; £-4,200,000; £4,506,000. Filin Hirc: £128,000; £125,000; £134,000. Highway a : £1,930,000; £2,126,000; £2,324,000. Stamp Duty: £2,282,000, £2,250,000; £2,802,000. Land Tax: £952,000; £930,000; £937,000. Income Tax: £25,686,000; £27,000,000; £26,466,000. Miscellaneous: £101,000; £100,000; £93,000. Total Taxation: £45,689,000; £47,331,000; £48,371,000. Interest recoveries from trading acti- ; vities: £5,364,000; £5,403,000; £5,857,j 000. Uther receipts: £3,195,000; £4,560,0U0; £4,278,000. Totals: £54,248,000; £57,294,000; £58,506,000. s Expenditure. Permaneut appropriationa (debt servicea ) : £21,384,000; £22,422,000; £22,796,000. Other special acta: £6,604,000; £2,574,000; £2,704,000. Total: £27,988,000; £24,996,000; £25,500,000. Annual appropriatious (social serviees) : £16,243,000; £24,233,000, £21,- | 302,000. Other votes: £8,802,000, £11,041,000; £10,150,000. Total: £25,045,000; £32.274,000; £31,752,000. Total expenditure:. £53,033,000; £57,270,000; £37,252,000. ! Surplus: £1,215,000; £24,000; £1,254,i 000. ' Totals: £51,218,000; £57,294,000; £58,506,000. "It will be noticed," said tlie Minister, "that receipts undcr practieally all headings are in excess of those for the previous year and of the Budget estimato, the only cxception woi'thy of note being the Income Tax wliere the aniount, though greater than for 1944-' ! 45, failod to reacli the estimate by some ! £534,000. "The expenditure is very elose to the estimate, being less tlian what was anticipatcd by £18,000. Expenditure undcr pcrmaucnt appropriatious was higher t ha.ii estimated but tliis was uiore than olt'set by rcductious nuder annual votcs where the only real field for savings exists. SOCIAL SECURITY IfUND. Receipts. Social Security Charge: Actual 194445, £13,664,000; Budget 1945-46, £13,750,000; actual 1945-46, £14,557,000. Iiegistration foe and miscellaneous: £613,000; £751,000; £729,000. Total: £14,277,000; £14,501,000; £15,286,000. Transfer from Consolidated Fund: £4,50n,000 ; £7,000,000; £7,000,000. Totals: £18,777,000; £21,501,000; £22.286.000.

Expenditure. iM oue lary benefits: £13,428,000; £16,571,000; £16,552,000. Medical and liospital beiielits and administration: £5,904,000; £6,000,000; £6,408,000. Total: £19,332,000; £22,571,000; £22,960,000,/ " In the case of the Social Security Fund," said Mr. Sullivan, "as will be seen from the tables, the expenditure, wliile close to the estimate, is substantially above that for the preceding year but this reflects the inereascd benefits approved by Parliament during the last year. The additional cost has been met partly from increased revenue from the Social Security charge and partly by increasing the transfer from the Consolidated Fund. WAR EXPENSES ACCOUNT. Receipts. AVar Taxation Income Tax: Actual 3944-45, £8,562,000; Budget 1945-46, £9,000,000; actual 1945-46, £8,822,000. Stamp Duty (estate succession and gift duty): £5,060,000; £5,100,000; £5,024,000. Customs Duties: £2,788,000; £2,814,000; £2,861,00. Beer Duty: £1,535,000; £1,560,000; £3,713,000. Saies Tax: £9,539,000; £9,826,000; £10.559,000. Postage: £600,000; £600,000; £600,000. National Security Tax: £20,527,000; £20,600,000; £21,738,000. Miscellaneous: £121,000; £100,000; £100,000. Total: £48,732,000; £49,600,000; £51,417,000. Transfer from Consolidated Fund: £6,200,000. Lend Lease and Canadian Mutual Aitl: £24,546,000; £20,500,000; £26,837,000. Memorandum of security: £8,480,000; £3,500,000; £3,538,000. New Zealand borrowing: £25,000,000. Advance subscriptions, dr,: £1,555,- • 000. National Savings: £10,252,000; £9,327,000. Stock issued: £37,241,000; £16,318,000. Treasury Bills issued: £8,000,000. Disposal of surplus assets: £3,478,000; £6.000,000; £11,270,000. Rehabilitation: £118,000; £369,000. Miscellaneous receipts: £1,489,000;

£8(70,000; £1,405,000. Totals: £138,981,000; £105,400,000; £128,481,000. Reverse" Lend L'ease: £26,735,000; £24,000,000; £22,778,000. Loans redemption: £6,250,000, £27,500,000. Total: £13,009,000; £105,400,000; £334,645,000. "I do not proposc at tliis stage, " said Mr. Sullivan, "to comment extensively on the War Expenses Aceount. It is iiitercstiug to note, however, that the expenditure for the year at £134,645,000 approaches the iigurb of £121,249,800 plus gratuities £18,800,000, total of £.139,249,000, rcf'erred to in the addendum to the Budget and these latter ligures covered expenditure up to the point of demobilisation wliich, it was realised, would not be completed until part way tlirough the current iinancial year. Reverting to the position as now disclosed by the accounts for the past year, it will be seen that the full amount estimated to be.required for gratuities has beeu paid out, having been transferred in total to the Post Oliice Saviugs Bauk for allocation to iudividual gratuity accounts. Another niajor item appeariug iu the war expenses account is tlie transfer to the loans redemption account of £27,500,000. £22,500,000 of this amount was utilised to pay oif tlie debt owing to the British Government under the memorandum of security agreement and tlie balanee for the redemption of the ordinary war debt in New Zealand. The moneys for the memorandum of sgcuritv repaymeut were fouud mainly from fuuds iu the War Expenses Account, £14,500,000 being utilised in this way and tlie balanee of £8,000,000 being linanced by the issue of Treasury Bills as sliown 011 receipts side of the above trble. Apart from the loans redemption item, the expenditure out of WaT Expenses Account was £107,145,080, whicli is slightly in excess of the original Budget estimate of £3,105,400,080, the latter amount, of coursc, being inteuded for carrying on the war whereas tlie expenditure as actually iucurTed, covers in substantial part /he settlemeut of iiumediate outstanding war liabilities. "In additiou to loans raised for war purposes," said Mr. Sullivan, "the Government 's borrowing for other purposes during the past 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 £76,650,000 as authorised by Parliament in the Appropriation Act last session. The effect of this and the borrowing for war purposes of over £37,000,000 earlier in the year, less redemptions during the year, has meant. a net iricrease in public debt of '£21,273,178 and particulars of this will be set out in 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 past year reflect further period of prudent administration of public finances.'2