PUBLIC ACCOUNTS

Gisborne Herald, Volume LXVI, Issue 20017, 16 August 1939, Page 5

PUBLIC ACCOUNTS

RISING REVENUE INCREASED EXPENDITURE FIRST QUARTER OF YEAR REVIEW BY MR, FRASER CLOSE TO THE ESTIMATES ,'v. 'C (Per Press Association.) • WELLINGTON, this day. On behalf of the Minister of Finance, the Hon. P. Fraser has announced the financial position as reflected in the public accounts for the first quarter of the present financial year. The usual detailed statement will appear as a supplement to this week’s Gazette. The statement of revenue for 1939, compared with the figures for 1938, from April 1 to June 30, is as follows:

“It will be seen from these results,” Mr. Fraser explained, “that on a cash basis the total revenue received for the quarter ended June 30, 1939, amounted to £7.387,000, compared with £6,562,000 for the same period of the last financial year. This increase, to which all major headings of revenue contributed, represents a net gain, as there were no increases in the rates of taxation during the period.

“The increase in the Customs revenue reflects the heavy importations of goods (before the close of the first six-monthly licensing period this year. “The increase is, therefore, not an indication of the results for the whole year. In fact, as shown in the Budget, apart from the increased petrol tax, the Customs revenue whs anticipated to show a reduction of £1,650,000 for the year. “Other items call for no special comment, except perhaps to explain that, as in the ease of Customs, the increase in death duties and income tax rates were not operative during 'the 1 period under review. “In the case of highways taxation, the item is self-balancing, the revenue being offset by an equivalent amount of expenditure.” As regards expenditure, the position was given iby 'Mr. Fraser as follows:

‘‘For the purposes of comparison expenditure totalling £750,000 actually charged in the accounts under permanent appropriations has (been included under the .heading of annual votes, social services,” said Mr. Fraser. "This amount represents expenditure on social security purposes which, in accordance with the relative legislation, has 'been charged to permanent appropriations pending the passing of the Annual Appropriation Act. The total expenditure is in no way affected with this qualification. / ’ “It. will toe noted that the expenditure for the quarter totalled £7,540,000, compared with £6,661,000 for the same period of the last financial year. On a percentage basis, where allowance is made for the fact that the estimated expenditure for the whole of the current financial year exceeds last year’s expenditure, 20 per cent of this year’s estimate has toeen expended to date, compared with 19 per cent for the same period of last year. ‘The only items calling for special comment are exchange and social services. As regards exchange, the increase is due to the fact that additional remittances were made to London In the first quarter of this financial year, compared with the same period of last year. It is anticipated that the provision of £1,500,000 made in the current year’s estimates will toe sufficient to cover the expenditure under this item.

“In connection with the heading of social services, where a 7 per cent increase is shown, the expenditure is not strictly comparable, as many items, for instance, pensions and annuities, which in the last financial year were provided 'for under the vote pensions, are now charged against the social security fund. "While the position as disclosed by these results is in every way satisfactory,” Mr. Fraser concluded, “it is, of course, too early to indicate what the results for the full year will (be. To date, however, we are adhering cloisely to the Budget estimates.”

• ■ ApL-Jun. Aftl.-Jun. ,Inc. ... V" *■ V' •- • . 1939V • 1938 1939 ; jj £ ...... £ Customs'/ 2,562.000 2,422,000 140,000 Beer duty V. 256,000 251,000 - 5000 Sales tax .. 958,000 845,000 113,000 Highways .. 1,075,000 873,000 202,000 Stamp and death duties 830,000 731,000 99,000 Income tax 696,000 561,000 135,000 Miscellaneous 74,000 115,000 .Totals .. 6,451,000 '5,798,000 653,000 Interest .. 401,000 265,000 136,000 Other rec'pts '535,000 499,000 36,000 Grand total 7,387,000 6,562,000 825,000

Permanent Appropriation Ap.-Jun. Ap.-Jun. 1939 1938 i? • £ £ Debt services .. 1,712,000 1,664,000 Exchange 417,000 202,000 Transfer to highways revenue .. 813,000 804,000 Other permanent appropriations . 54.000 43,000 Total .. 2,996,000 2,713,000 Annual Votes Social services .. 2,717,000 2.437,000 Other votes, etc. .. 1,827,000 1.511,000 Total .. •• 4,544,000 3,948,000 Grand totals .. 7,540,000 6,661,000