FINANCES REVIEWED

Chronicle (Levin), 9 October 1946, Page 8

FINANCES REVIEWED

— Press Assnciatioti

Country Continuing Normal Course .

By Telegraph-

WELLINGTON, Oet. 8. Looking at the picture as a whole • and keeping in mind that the accounts covered a very short period only, it appeared that the country 's fmancial position was continuing 011 its normal tourse and the results were as might be expected at this time of the year, said the Minister of Finance, Hon. W. Nash, tonight, when presenting the public accounts for the lirst three months of the current ilnancial year. In the following details of the Consolidated Pund the iirst figure is the aetual one for the three nionths ended June 30, the figure ' in parentheses being the Budget esthnate for the sanie period. keeeigtsi Total revenue £22,607,000 (£25,095,000) including taxation £20,661,000 £20,901,000), interest recoveries froin trading accounts, etc., £772,000 (£1,192,000),- profits of trading undertakings £547,000 (£377,000), Depart- . mcatal receipts £627,000 (£2,625,000). Expenditure: £15,728,000 (£24,866,000) including permanent appropriation £4,117,000 (£6,347,000) and annual appropriations £11,611,000 (£18,519,000). The latter heading includes social services £8,760,000 (£8,684,000), armed serviees reiiistated ^rotes iiil (£1,974,000), stabilisation nil (£3,447,000), other votes £2,851,000 (£4,414,000). Mr. Nash explained that the War Expenses Aceount, altliough really a subsidiary of the main Budget Aceount, was for the purpose of clarity and because of its magnitude, shown separately throughout the war period. l)uring the present linancial year steps had been taken to transfer revenue and expenditure back to the niain aceount. Until these transfers were complete the figures were not comparable with the Budget estimates. The Consolidated Pund figures, therefore, sliovv only the aetual figures for the quarter compared with the proportionate part of the Budget estimates. Mr. Nash said taxation receipts were very close to the Budget estimate but other revenue headings varied substantially according to the normal date for receiving the various classes of revenue. Mr. Nash explained that no expenditure was recorded for the quarter under the armed services and stabilisation votes because ulp to the time the June accounts elosed, the Budget proposals for placing this expenditure on the annual vote had not been eonfirmed, but the necessary adjuslments to April 1 were now being made and would be shown 111 the next quarter 's arccounts. Mr. Nash said that in comparing the recorded expenditure of the Consolidated Pund for the quarter with the Budget estimate, allowance must therefore be made for these and other miscellaneous itenis which have now reverted to the Consolidated Pund. The ainount involved in these adjustments would be about £5,000,000 for the period, making the total expenditure from the Consolidated Pund for the quarter £20,750,000 compared with the estimate of £24,866,000. Expenditure at this time of the year was always expected to be below. The expenditure was 63 per cent. of the proportionate part of the Budget estimate compared with 61 per cent last year at the same time, indicating that the Budget anticipations were likely to be realised. War ExpeAses. Mr. Nash said the following details of the War Expenses Aceount reflect the differences between wartime costs and the ''mopping up" operations referred to in the Budget. Aetual receipts for the three months ended June 30: Nationai savings £2,323,000, amount received from the United States Government in rcimburseinent of war. supplies not eligible for reeiprocal aid £.5,184,000, disposal of surplus assets £777,000, miscelJaneous receipts £1,869,000, rehabilitation £166,000— total £8,3 1 9,000. Expenditure: Navv £791,000, Army £1,378,000, Air £730,000, ancillary £42,000, rehabilitation £786,000, reverse lend-lease £178,000— total1 £3,905,000. Mr.-Nash said that in con.sidering the|e ffi^utes . t\\:p fav-tpls should be rememberddi '*•' Pifstly, thero was the amount aetual ly expended through iniprest accounts aml not finallv brought to charge when the accounts were closed. This amounted to £10,663,000, so that the total expenditure was £14,568,000 which must, however, be reduced Ity the £5,000,000 mentioned earlier as transferable under the Budget proposals to the Consolidated Pund. Social Security. In the following details of the Social Security Pund the aetual figure ior the three nionths is given Iirst and the Budget estimate ioliows in parentheses. Receipts: Social Security charge £4,546,000 (£4,975,000), miscellaneous receipts £30,000 (£34,000), transfer from the Consolidated Pund £5,750,000 (£4,500,000)— total £10,326,000 (£9,509,000). Expenditure: Monetary bencfits £2,579,000 (£4, 12S, 000), family benefits £644,000 (£3,155,000), medical benefits £1,145,000 (£1,451,000), administration expenses - and emergency benefits £142,000 (£215,000)— total £4,510,000 (£8,947,000). Mr. Nash said the difference between the expenditure and Budget estimate was aecounted for by the procedure for paying benefits, the niajor portion of which was paid out through the Post Ofliee to which nioneys were advanced for the purpose. There was a time lapse before these moneys._were brought to charge and the quarter 's accounts covered only about -half the aetual amount paid out, the balance being represented by imprests outstanding of £4,243,000 or a total expenditure of £8,753,000. Family benefits were eonsiderably below the estimated expenditure due to applicciticms not- eomiug to hand as quickly as expected. 1 Mr. Nash, summarising the three accounts and including expenditure through imprest accounts, said the following position was reaelied: — J Receipts: Consolidated Pund £22,607 - 000, War Expenses £8,319,000, Boeicu « Security £10,326,000 — total £41*252,000. Expenditure: Consolidated Pund (£18,016,000, War Expenses £14,568,000, Social Security £8,753,000— total 1. £41,337,000.