STATE FINANCES

Evening Post, Volume CXIII, Issue 30, 5 February 1932, Page 8

STATE FINANCES

FOR NINE MONTHS

[REVENUE STILL FALLING

BUDGETARY POSITION

MR. . STEWART'S REVIEW

A review of the Public Accounts, made by the Minister of Finance '(the Hon. W. D^wnie Stewart) today, shows that revenue is continuing to fall, and the Minister indicates that tihe Budgetary estimate for several items, notably land tax and Customs revenue, will not be reached. Expenditure is below the proportionate estimate to the extent of £1,249,016, but here again Mr.: Stewart states that he expects that the expenditure for the whole year will exceed the estimate. The Minister concludes that the public revenues are now reflecting in a very marked degree the results of the economic depression. A supplement of the "Gazette" was issued to-day containing tho Public Accounts for the nine months ended on 31st December last. Commenting on the position as disclosed by these figures, the Minister of Finance stated: "It will be seen from the Accounts that the revenuo for the nine months of this financial year amounted to £12,443,166, compared with £14,868,276 received during ths corresponding period of last financial'year. It will be remembered, however, a considerable falling off was allowed for in the Budget, and the most useful comparison is with the proportionate part of the final estimates for the year as revised in the Supplementary Budget. "Land and income tax are payable on specified dates, and therefore cannot be judged on a proportionate basis. Land tax receipts to 31st December amounted to £504,000, and though this total will be increased before tho close of the year, it is clear that the Budget estimate of £625,000 will not be reached. Income tax is not payable until this month, so the outcome in regard to that item cannot be gauged at present.- ■ "Receipts from, other items of taxation include Customs, £4,324,034; beer duty, £466,350; motor-vehicles —duties and licences, £1,450,548; and stamp and death duties, £2,068,769. CUSTOMS SHRINKAGE. The Customs receipts were approximately £560,000 short of the appropriate proportion of the estimate for the year. The shortage has been steadily growing as the months go by, and it is now evident that the receipts for the year will fall considerably short of the Budget estimate. "The position in regard to beer duty Is satisfactory, and this item should leach the estimate. "The revenue from motor-vehicles— fluties and licences—for the nine months was ahead of the estimate, but as this revenue is at present earmarked for roading purposes, the Consolidated Fund will not benefit by such, additional receipts. ' "The position, in regard to stamp and death, duties has been uncertain for , iome months, and though the receipts for the nine months are only 'behindhand to the extent of £155,000, the trend of the death duties, racing reyenue, amusement tax, etc., is definitely downward, and indications are that there will be a substantial shortage for .the year. "Interest ' receipts for tho nine months amounted to £1,855,383, and other receipts to £1,454,006, but as these receipts for.the most part are not spread evenly over the year, they cannot, be judged on a proportionate basis. Among the interest receipts the most doubtful item is railway interest. The railway revenue has. continued . to fall, and though the board is!still endeavouring to offset that fall by savings in expenditure, it is probable that the amount that will be paid to the Consolidated Fund will fall £100,000 or more short of the -Budget .. estimate..' "Under 'other receipts' some largo amounts will be credited in !the last quarter of the year, but some of the smaller items, consisting of fees and revenues from lands, are lagging somewhat, and possibly will be a little short at the end of the year. In fact, throughout this financial year the revenue aa a whole has continued to slip, and even now we do not appear to have reached the end of it. EXPENDITURE SIDE. "On'the other, side of the account, the net expenditure for the nine months compared with the proportionate part of the estimate is as follows:— Proportion of Expendl- tinder estimate, ture. proportion. £ £ £ .IJebt services 7,822,328 7,708,554 ' 113,774 Other per- . . manent appropriations 5,464,587 4,690,897 773,690 .annual ■ votes 5,183,755 4,822,203 361,552 18,470,670 17,221,651 1,249,016 "The expenditure position, however, is not ia favourable as these figures would indicate. The under-proportion on account of debt services is due to the fact that only about one-third of the amount provided for repayment of debt had been used up to 31st DecemrS r* Intorcst payments are in excess or the proportion of the estimate, and though this item is affected by ; the dates' upon which payments are due it is estimated that the expenditure for the year will exceed the estimate. This excess will be due to the fact that issues of treasury bills and treasury .tall rates have been greater than was anticipated. "The expenditure under other permanent appropriations includes hospital and unemployment subsidies, pensions and transfers of earmarked revenues to the Highways Account and local bodies. These items are subject to accounting fluctuations, and it is not anticipated that there will be' any saving on the year's transactions. In fact, unemployment subsidies may exceed the estimate. "In regard to the annual votes, the position shown is quite satisfactory, although the under-expenditure to the extent of £170,000 is accounted for by imprests outstanding. , "From tho figures for the nine months it is clear that the public revenues are now: reflecting in a very marked degree the results of the economic depression."