SURPLUS OF £1,785,712

Chronicle (Levin), 14 June 1948, Page 7

SURPLUS OF £1,785,712

■Press Association)

■ Finance Minister Reviews Pnbiic Accounts

(Per

WELLINGTON, June 13. : A surplus of £1,785,712 10s 9d in the Publie Accounts for the year ended Marcli 31 was announced tonight bj' the Minister of Finance (Rt. Hon. Walter Nash). The Minister said when the accounts for the nine months were reyiewed it was stated that :we could anticipate with con/idence that the satisfactofy " state then indicated would be refieeted when the fulJ year's transactions were compieted. "It is pleasing to note that the all-round position of soundness now shown in the final ligures has lully justified that forecast. " In the following summary of details of the niajor accounts given by Mr. Nash, the aetual ligures for the financial year are giveu first with the Budget estimates following in parentheses: — Consolidated. Fund Receipts. Taxation: Customs £24,391,000 (£21,300,000); beer £4,404,000 (£4,370,000); saies tax, £15,940,000 (£15,300,000); fiiiu hire, £111,000 (£130,000); liighwavs, £3,544,000 (£3,300,000); stamp' duty, £9,383,000 (£9,000,000); land tax, £854,000 (£950,000) ; ineome tax, £3(5, 032, 000 (£35,500,000); miscellanoous, £02,000 (£100,000); national securitv tax, £772,000 (£700;000). Totals: £9(5.099,001) (£90,710,000). Interest. froiu trading activities, £5.0')3,0fl0 (£5,500,000); profits of tradiiig . undertakings, £2,172,000 (£2,1(50,OOO); departmental receipts £13.842,000, (£11,490,000); totals, £117,11(5,000 ( £109,8(50,0 0 0). Expenditure. Permanent Appropriations: Debt services, £2(5,(512,000 (£22,782,000) ; olher special Acts, £2,709,00" £."40.0()0); totals, £29,321,000 (£23,322,1 >00). Annual appropriations: Social Securitv and other social services, £35,534,000 (£35,973,000); armed services, £9,382,000 (£10-, 1 /2,000) ; stabilisalion £ 14, (522, 000 (£14,105,000);'ither votes £2(5,471,000 (£20,()80,OUU ). Totals: Annual appropriations £St>,009,000 ( £8(5, 330, 000 ) ; total expendtture £115,330,000 (£109,852,000).. Mr. Nash said that Customs reveuue was in excess of the estimate by approxiniatelv £3,000,000 dtie to the m-.-reased volume of imports during tlic year, uhile the other major increase was in departmental receipts wlncn were nearly £2,000,000 over estimates. Tliis was the result niainly of the 111-.-rease in Pulilic Works Dcpartment re -overies arising out of the larger voiume of work udertaken for various depyrtinents. On thd expenditure side tlie annuaJ appropriations kcpt very close to the estiinate, being slightly under the budget ed iigjire. There were, of course, variat ions. within this group of expenditure. The stabilisution vote was approximately £500,000 iu excess oi the. estimate, priueipally dne to tne costs involved in the chartering oi Voastah afid ' 'inrtbrbolunhtl ~ vessfMs aiiu' the subsidy of sea ~ freights being glentoi- t-luin antieipated. On the other' hand the expenditure if tlie tliree armed services was less . (hau anticifiated by £80(1,000, this re- , sulthig froai imder-expenditure on it'ems'provided for constructioii woi'ks and for the purchase of technical equip 'meiit. The increase of nearly £(5,000,000 in the - permanieiit appropriations was due to two transactions: Firstly, there was tlie transfer of '£4,000,000 to the l.oans Redeiuption Account niainly lo meet tlie repayiuent of the loun oi £3,7(55,133 wiiicli t'ell due on May 15 and had since been repaid. Tlie other itein was the transfer of £2,055,000 to the War Expenses Account to meet the •ost of six Locli class frigate.s and • me survey vessel purchased from Brilain. Mr. Nash said this latter expense was part of tlie defence programme as aiinoimced iiy the Goverunient and followed tlie principle adopted dnring the .Mir that expenditure of this uature ■>eing noii-productive sliould be met as tar as possible from revenue, tlius avoidiilg the subsequent permanent burueu on taxation. A delinite coniinitment liad been entered into and to avonl Varry-ing. this substuntial iiabilitv into tiie current year 's' linances it was uecided lo inake an iniiiiediate payiiieiit. No provision had been made ior this unforeseen contiugency on tlie Estimates and the payment was eifectid under tlie statutory autliority of the •\ ar ' Expenses Act, 1939. This compieted the niajor capital expenditure for the postwar naval estaulished, Jeaviiig the necessary provision for sinular cx)ieiiditure for tlie ariuy and air to be made in ihe current and future year 's .inan. ial progrannues. , Kummarisnig the position of the 'misolidated Fund, Mr. Nash said: " Tlie abnoruiality of tlie pervailing ■ ii cu.ustam-es contiiiues to affect iu . iinte respects aceuracy in tlie forecastiug of pnbiic linances and no doubt t will be some ti tne yet be.fore we in • omiuon with other couut ries attaiu reiuti\e stability. llowever, tlie ligures iearly iudicate that the finances of, tlie country continue to be conducted on soiuid and prudent lines. " .Mr. Nash said the general buoyant revenue position was roflected in tlie accounts for tlie Social Seeurity Fund where tlie social seeurity cliarge ■ hxceeded tlie estimate pf £23,700,000 by some £2,500,090. The balatice in the fund now stands at £7,242,000. M r. Nash said the monevs reauired

during the year for the War Expenses Account were found from current revenue, principally reecipts from the disposal of surpins assets and the transfer of the . previous year's Consolidated Fund surplus. As was antieipated no borrowilig was required.