BUOYANT

Evening Post, Volume CXXII, Issue 31, 5 August 1936, Page 7

BUOYANT

REVENUE LAST YEAR

OPERATIONS REVIEWED

The buoyancy of revenue was noted by the Minister of Finance as a feature' of the operations of the last financial year, which, as has already been stated,- ended- with a surplus of £281,800. The Minister briefly reviewed the operations of last year, and summarised them as follows: — REVENUE. £ £ Taxation ...■. 21,55G,115 Interest receipts 2.721,440 Other receipts 1,894;50G Total 20.172,367 EXPENDITURE. £ £ rcrmancnt appropriations— Debt services !>,:Hn,!).11 Exchange 1.r,95,5!ii Illßlnvnys 2,107,'10ii Other services ■ . 701,332 - Annual appropriations— | Social services 7.73R.-.M2 j Other services •USS.'iUT Total .. 2,r.5n0.."i07 Surplus E2SI.SOO

"The main feature in the year's operations," said the Minister, "and the only one that is important from the point of view of Uie current year's j Bucget, was the buoyancy of the revenue. The. surplus of £281,800 realised was entirely due to this factor. The total revenue received exceeded the Budget estimates by £430,000, but subsequent to the Budget being brought down a further review of the revenue estimates was made, arid on the basis of that review the 7i per cent, increase in salaries and wages and restoration in pensions was back-dated to August .1 instead of commencing on October 1 as was contemplated. The additional amount involved was approximately £ 140,000, and, if allowance is made for this, the revenue for the year exceeded expectations by some £290,000.

"The extent to which the revenues' have recovered is better illustrated by a comparison of the yield from taxation for last .financial year with that of the previous year. With the exception of stamp and death duties and land tax, every item of taxation shows a substantial increase amounting in the aggregate to. £2,092,000. This increase was offset by a decrease of £679,000 in the yield from stamp and death duties, due to abnormal amounts of death duties having been paid during 1934-35, and a decrease of £34,000 in land tax due to lower valuations.

"Consequent on the surplus of revenue over expenditure, no Treasury bills were outstanding on March 31. In this connection I would mention that it is customary to arrange temporary finance from other Government accounts on the security of Treasury bills in anticipation, of revenue receipts, and iri the financial year under review recourse to bills was'necessary

to the extent of £3,650,000. All such bills, however, were redeemed by March 31. The bills had a currency not exceeding three months, and interest ranging from rates of 13 per cent. to 2\ per cent, was paid on them.

"In addition to repaying all Treasury bills, the amount outstanding under a deed of hypothecation entered into for liquidating reserves invested in discharged soldiers settlement securities was reduced during the year by £950,000, leaving the amount outstanding as at March 31 last at £2,900,000. This amount is held departnientally, and is not!part of the public debt in the ordinary sense of the term."