N.Z. FINANCES

Hokitika Guardian, 2 November 1931, Page 5

N.Z. FINANCES

HALF YEAR’S REVIEW.

DEFICIT REVEALED.

(By Telegraph—ter tress Association)

WELLINGTON, Oct. 31

The Public Account for the first liai’f of -the financial year was ' published to-day in a Suplementary Gazette. Commenting on tiie figures, the Minister of Finance (Hon. Downie Stewart) stated;:•lt will be seen that for the revenge of the Consolidated lor the period amounted to £7,347,379', compared .with £9,057,880 for the corresponding period of last.year, ' a decrease of £1,710,501. However,, a coin-' sides able shrinkage in revenue was allowed for in the Budget, and this decrease dois not indicate the financial position.

Receipts from taxation amounted to £5,5(50,814, of which £2,662,634 was derived from customs duties. The year’s estimate for this item was substantially reduc. d in the Supplementary Budget, and compared with the appropriate proportion of the amended estimate, the receipts were approximately £365,000 behind. The outlook is still som what obscure, but in view of the- rising tendency of our export pj:ices, there is a reasonable prospect that some improvement may take place in the remaining portion of the year. Revenue from stamps and death du- . ties was about £500,000 less (than that received for the corn spending period of last year, but a substantial- falling oiL was anticipated, and receipts were: only about £189,000 short of the proportionate part of the estimate for the year. The largest item concerned the death duties, which are ; incalculable, except on’ the basis of and fluctuates front month to month. Lower 'values and difficulty in realising on property were also another factor affecting this revenue. It is yet too early to say what will be the outcome of this item for the year. Revenue from motor vehicles, duties and licenses slightly exceeded that received during the six months of 1930, but this revenue is earmarked for roading purposes, and does not assist the Budget. . V 5 ; ; Receipts from beer duty and film hire tax are in accord with'estimates,, while the position in regard to l(ihd and income tax will not be,-.known until later in the year.

Interest receipts for the' period com-, pare quite favourable with the amount received during the first half of last yiearj while other receipts show a slight increase, diie to the introduction of additional .items.

On the other side of the account, the net expenditure for the six months amounted to £11,403,796, (compared with £12,237,467 for the corresponding period ’tff"'RtSfc^yeat. ‘ln vieV of-tko-changes made, however, the most useful comparison is with the proportion of estimates tor the year. Following i s the comparison on this basis:— ' Civil list proportion of estimate, £14,336; net expenditure £15,800, over proportion £964. Debt services: £5,213,086 —£5,373-, 407—£159,721- ' ■ Other permanent charges :£3,b11-, 930— £2,980,408 under proportion ...631,462.' ' 'Xnnupl votes: £3,541,938 621—under proportion £447,317. ” Totals: £12.381,890—£11.463, 796 £160,685—£1,078,779, leas £160,685 £918.094. A larfe under proportion shown tor permanent charges is argely noromal, being due to accounting fluctuations and "outstanding payments- Ft is anticipated that the expenditure under permanent appropriations will be m accord with the estimates for the year. The position in regard to expenditure under annual votes is quite satisfactory, a’though not as good as. +he .'figures indicate, as the estimates for the year have to be reduced in accordance with the supplementary (financial statement. . In general, added the Minister for Finance, the expenditure is being kept within the estimates but tlie position in regard to the revenue, particularly from customs and stamp dirties, V-still somewhat uncertain, though improving. The economic outlook gives some grounds for hope that it may come up to our amended, expectations.