PUBLIC ACCOUNTS

Dominion, Volume 35, Issue 265, 7 August 1942, Page 4

PUBLIC ACCOUNTS

Details Of Revenue And Expenditure FIGURES FOR FIRST QUARTER Details for the first quarter of this financial year of the Consolidated Fund, Social Security Fund and the War Expenses Account were announced last night by the Acting Minister of Finance, Mr. Fraser. He eaid it was of course too early in the year for the figures to show accurately the trend of the various headings, either as a percentage of the estimate for the year or in comparison with the figure for the corresponding period of last year. However, making due allowance for this factor, the accounts as a whole showed quite a satisfactory state of affairs, particularly in the case of the Consolidated Fund. Details are as follows: — CONSOLIDATED FUND. Ordinary Revenue Account.

Mr. Fraser said that revenue from taxation was as high as 24 per cent, of the year’s estimate, compared with 17 per cent, for the corresponding quarter of 1941. This was due largely to a substantial increase in income tax receipts, while apart from an expected decline in highways revenue, the remaining principal items of taxation compared favourably with last year s

Expenditure headings, said Mr. Fraser, showed remarkably little variation, specially in the aggregate where the percentage of payments jto the year’s estimate was almost identical with' that for the first three months of the last financial year. The variation in exchange is of an accounting nature, depending upon the period in which recoveries were effected. SOCIAL SECURITY FUND.

"As regards the receipts of this fund, the decline of £400,000 arises-from an early closing of the accounts this quarter,” said Mr. Fraser. “Both of the groups of payments show increases. In the case of annual appropriations, this arises in respect of medical benefits, but in neither case is it anticipated that the Budget estimate will be exceeded.” WAR EXPENSES ACCOUNT.

"The relatively high totals in this account are caused mainly by bringing iu £10,000,000 of the recent Liberty Loan and to a lesser extent by a general increase reflecting the progress of the war effort,” said Mr. Fraser. "The influence of the £10,000,000 is shown in the item ‘loans raised’ on the receipts side and also in the large balance of cash and investments at June 30. Apart from an expected increase in the expenditure of the Armed Forces, the most, striking item of expence is the great expansion in the civil sub-division, eloquent testimony to' the magnitude and wide variety of the war effort on the home front. This covers defence construction not directly chargeable to the Forces, reserve stocks of various commodities, temporary finance for suppliers to the United Kingdom Government, assistance to manufacturers of munitions and essential goods, subsidies and many smaller items.

“In general," the Prime Minister concluded, "all three funds indicate a satisfactory trend in the public finances and show that the Budget estimates of both revenue and expenditure are in total being closely adhered to.”

REVENUE. Percent. Smooths 3 months •ended to total June 30. for year. 1941. 1942. 1941 1942* Taxation; 41 £ p.c. p.c. Customs J,982,000 1,719,000 24 26 Beer duty ... 354,000 415,000 21 28 Sales tax .... 710,000 701,000 20 24 Highways 840,000 395,000 36 22 Stamp duties 1 552,000 302,000 " 32 25 Income and exeess profits taxes 1.542,000 3,949,000 9 24 Miscellaneous . 91,000 01,000 7 5 6,077,000 7,692,000 17 24 Interest 397,000 480,000 11 "15 Other receipts . 561,000 246,000 31 10 7,035,000 8,418,000 17 22 ’Percentage ot estimate.

figures. Expenditure. Percentage 3 3 months months ended to total 3 une 30. for year. £ £ p.c. p.C. 1041 1942 19411942 Permanent appropriatlone: Debt services 1,717,000 2,193,000 15 18 Highways . 300,000 201,000 13 12 Exchange .. . 693,000 320,000 30 18 Other services 55,000 139,000 3 7 2,771,000 2,853,000 16 16 Annual appropriaSocial services 1,762,000 1,937,000 14 15 Other votes . . 1,747,000 jl,764,000 20 26 6,280,000 6,555,000 16 17

Receipts. Percentage 3 months 3 months ended June 30. 1041 1942 : to total for year. 1941 *1942 Cash, Imprests & Investments at April 1 .. 1,8(17,000 0,034,000 Social Security i S ”t?atlon & fe e e B .' 2,894.000 2,488,000 26 23 Miscellaneous 1,000 1,000 * 4 4,762,000 5,513,000 — — . *Percentago of estimate. Payments. Annual approprlations (medical hospital, etc. & H d on) niSt . ra .’... 451,000 766,000 15 20 Monetary bene, 8 10 Cash, imprests & investments „ as at June JO 3,448,000 3,560,000 —— — 4,762,000 5,513,000 — —

Receipt's. 3 month: s ended June SO, 1941. 1942. £ Cash imprests ami iuvestments at April 1 4,119,000 5,337,000 2,424,000 13,087,000 War taxation 4,656,000 5,668,000 Miscellaneous .. 69,000 814,000 11,578,000 25,100,000 Payments. 3 months ended J une 30, 1941. 1942. 337,000 433~»00 3,320,000 6,209,000 Air 1,207,000 1,808,000 Civil 88,000 3.811,000 17,000 Amortization of debt .. 402,000 4,000 Cash, imprests, and investments at-June 30 0,207,000 12,841,000 11,578,000 25,100,000