PUBLIC ACCOUNTS

Hokitika Guardian, 5 February 1930, Page 7

PUBLIC ACCOUNTS

FIGURES FOR NINE MONTHS,

POSSIBILITY OF SURPLUS

WELLINGTON, Jan. 31

Details of trie' Public Accounts for tlio nine montlis ended December 91st, as published in a special Gazette, are given in a statement by the Prime Minister. The revenue for the nine months was £16,388,212, compared with £15,013,863 for the corresponding period of the previous year, an increase of £1,324,349.

Alter making due allowance for fluctuations in the dates of accounting and increases in motor vehicle license fees and the tax on motor spirits, c ’liectecl for the Alain Highways Board, the actual increase is approximutely £1,150,C00. The principal increases arc:—

Customs £866,832.--About) 40 per cent, of this increase is accounted for by the duty on motor vehicles, which is largely seasonal and is not likely to continue to the close of the financial year. Additional primage duty is responsible for £198,000. Land tax has increased by £71,019, duo. principally to the alteration in mortgage exemptions and revaluations. '

Interest on public. moneys has increaesd by £122,214 mainly due to (a) earlier raising of the 1929 loan iti London enabling loan receipts to he invested on fixed deposit for a longer period, and (b) a higher rate of interest received on temporary investments in London.

Miscellanoues revenue £BB,IOB. This increase includes £54,0C0, on account of the sale of the Pacific cable.

The following table shows the revenue received under the principal heads as compared with three-quarters of the Budget estimate for the year. Receipts for motor vehicles duties, licenses, etc., which were apportioned to the Main Highways account, and local bodies, and from; income tax, which is not payable -until February, have been omitted from the table: — a of Budget Receipts Estimate for nine months. ' £ • £ Customs ... 6,300,C00 6,704,959 Beer duty ... 450,0CX) 460,715 Stamp and death duties ' ... 2,710,500 * 2*587,009 Land tax- ... 1,119,750 1,120,094 Interest on public: moneys 015,000 645,554 Interest on capital liability --i • working railways ... 1,837,500 1,520,000 Postal and telegraph ... 360,000 324,000 Interest on public debt redemption fund ... 746,250 641,605

Customs duty is the only item of the above showing a substantial increase over a nine months’ proportion of the, estimate, but when the estimate was made it was expected that there would be a falling-off towards the end of the year. This has not yet been borne out, for, although the amount received during November was less than the amount (received during any other month since June, 1929, December is well above the average. The interest on the capital liability of working railways shows a copsidej'tvble shortage, owing to writing off £8,060,1C0 capital in terms of Section 20 of the Finance Act, 1929. The final revenue for the year from this source will be lower than the estimate. As a set-off against this decrease can be taken the cessation of the subsidy on losses on branch lines and isolated sections. Expenditure for nine months com, pared with the corresponding period of the previous year was :—• PERMANENT APPROPRIATIONS. £ . 1929 13,205,861 1928 11,588,970 Increase 1,616,394 1929. 1928. Increase £ £ £ 5,652,810 5,639,614 13,196 The total under the heading is; 1929. 1928. Increase £ £ £ 18,858.671 17,228,584 1,630,087

The increase under permanent appropriations is £1,616,891. The principal items showing increases arelnterest £139,221, principally interest on new loans raised in London and New Zealand.

Repayment, of Public Debt Act, 1925, £1,029,283. This increase is mainly due to earlier payment this year, but includes part of the estimated increase of £160,000. Under special Acts, £424,548. The greater proportion of the increase under this head is due to increased receipts from motor vehicles duties, licenses, etc., and consequent increase in the amount paid to the Alain Highways Account. In addition old age and widows’ pensions, and subsidies under the Hospitals and Charitable Institutions Act, 1926, show increases.

Expenditure under annual appropriation show very little variation, the increase being only £13,196. Increases are shown in the following votes: Department of Agriculture £13,378 and Department of Education £93,778 while the undermentioned show decreases: Public buildings £24,964, Department of External Affairs £20,635, and Electoral Department £50,736. From the above it will be seen that the major portion of the increase is in permanent appropriations. After eliminating increases due to accounting fluctuations (earlier payments), and items, such as payments of fees and fines under the Al'otol' Vehicles Act, 1924, and petrol tax to the Alain Highways Account, which follow a corresponding increase on the revenue side, tlie approximate increase in permanent appropriations is £360,060.

Summing up, the position as disclosed by the nine months’ figures indicates that there is a reasonable prospect of the accounts balancing on the right side at the end of the financial year, with the possibility of a small surplus if the Customs revenue does not hiaterially decline.