NEW ZEALAND FINANCES

Hawera Star, Volume LIII, 13 June 1933, Page 4

NEW ZEALAND FINANCES

Year’s £40,000 Surplus

REVIEW BY MINISTER

Revenue Above Estimates

EXPENDITURE ECONOMY.

COST OF HIGH EXCHANGE.

(liy Telegraph—Press Association.) WELLINGTON, June 12. Commenting upon the audited accounts, the Minister of Finance (the R,t. Hon. J. G. Coates) states: As indicated in my preliminary Press statement issued shortly after the close of the financial year, the year closed with a- balanced Budget and a small surplus. This has been defined as approximately £40,000, and, in view of the serious position that had to be faced when the year opened, the sua> plus will afford general satisfaction. “The Budget provided for reducing a huge prospective deficit to not more than £1,010,000, but a.s the year progressed it became evident that the result for the yew would be much nearer a balaneei than this. “The- final results disclose a., surplus of about £40,000, which has been made possible partly by reason of revenue buoyancy totalling £938,000 and partly by way of nett economies totalling £112,000.

REVENUE ESTIMATES

“It will 'be seen that the revenue for the past year compared with the Bud*jget estimates discloses an excess or receipts 'over the Budget estimates as follow: Est. Rlec. Excess £ £ £ Taxation 14,800,000 15,605,206 805,206 Interest 2,550,000 2,641,710 91,710 Other .. 4,250,000 4,321,605 41,605

Totals ... 21,630,G00 22,568,521 938,521 The major excess of receipts over the Budget estimate ha.s been contributed by taxation to the extent of £805,200, of which the principal increases arose out of Customs duties (£431,044), income tax (£156,800), stamp and death duties (£99,200) and motor vehicles taxation (£70,600).

R AILWAY PROFIT HELPS

“For the increase of £91,700 under ‘interest’ the improved position of nett railway revenue for the past year has been responsible, a surplus of £110,500 having been received from this source, against which there have been minor declines in other sources of revenue under this heading. “Under ‘other receipts’ the surplus of £41,600 arises for the most part by reason of registration and other similar fees having been maintained in excess of what might reasonably have been expected under current economic conditions.

EXPENDITURE EXAMINED

“Expenditure for the year' is illustrated! in the following table: Permanent Appropriations. Under

•'Legislative and Prime Minister’s Department and Financet Development of primary and secondary industries. ADDITIONAL EXCHANGE

“It will be evident,” Mir Coates says “that .substantial economies have oeen effected under all the mam headings ot expenditure -with the exception! of ohher senvices’ under permanent apWRP I ' I tlon.s, where an excess of £3/O,SUU arises by .reason of additional exchange on London purchased under the Banks Indemnity (Exchange) Act- during the final quarter of the financial year. _ “Under other item© the major saving arises under debt services, principally by reason of interest economies arising out of the fact that it was found possible to finance the year’s operations with considerably less recourse to Treasury Bill finance than was anticipated. . . . , “Under the other items it will be seen fnv ireaison of the operation of progressive economies and a continuous "eview of all departmental expenditure substantial savings have been effected in every possible direction. Treasury bills issued under the Public Revenues Act for general purposes totalled for the year £22,974,000'as against which 02-4,419,400 were redeemed, the re-lemlpt-ions showing an excess of £1,445,000 over the issue. The excess was due to the fact that bills totalling about £3,000,000 were outstanding at the close of the previous financial year.

“More than usual interest win. also centre upon the transactions arising from the issue of Treasury, bills under the Banks Indemnity (Exchange) Act of 1932, in respect of which £2,858,000 was issued during the year, against which redemptions totalled £478,000, leaving £2,380,000 outstanding at the close of the year. Of this, £1,910,000 has been utilised to piu-chase exchange from the hanks under the provisions of the

Banks Indemnity (Exchange) Act. The difference of £470,000 between the hills ouos'eanding and the amount purchased represents the exchange cost, which has been debited against revenue imder ‘permanent appropriations, other expenditures. ’

“Of the £1,910,000 as above paid to the banks for the purchase of exchange the major portion was retained in the New Zealand Government indemnity exchange account in London, but as 'indicated in the account, £350,000 was transferred to the public account before Mairch 31 and formed part of the floating cnr-fli and investment balances of tbe^Consulidated Ftmd.”

Approp. Expend. Approp. £ £ £ Debt Services 10,020,237 9,890,015 130,222 Other Services 1,932,696 2,303,193 370,497* “Over appropriation. Annual Appropriart ions. Legislative, etc.* 397,332 374,590 22,742 General Admin. 1,014,226 960,609 53,617 Law and Order 698,140 683,225 14,915 Defence 631,110 569,921 61,189 Maintenance ... 74,192 52,371 21,821 Industries! 963,501 851,517 11,984 Social Ser., etc.' 6,909,518 6,842,938 66,580 Totals 22.640,952 22,528,379 112,573