N.Z. BUDGET

Hokitika Guardian, 14 February 1933, Page 5

N.Z. BUDGET

REVENUE RECEIVED

STATEMENT BY HON J. G. COATES

[Per Press Association — Copyright.)

WELLINGTON, February 13

'Common, ing upon the supplement of the Gazette issued to-day, which contained the puDlio accounts for the nine months ended December 31, tne Minister of Finance., Mr Coates, stated: It will be seen from the accounts that revenue for the period, which is comparatively summarised under the main heading's, has been received as follows: Taxation: 1931-32, £9,133,777; ]932-33, £9,450,637;. increase, £316,861. Interest : 1931-32, £1,855,383; 1932-33, £1,557,741; decrease, £297,642. Other receipts: 1931-32,. £1,454,006; 1932-33, £917,439; decrease £536576. Totals: 1931-32, £12,443,166; 1932-33, £11,925,808; decrease, £517,357. ‘‘This discloses that the buoyancy of the revenue from taxation has continued to be well maintained, the .printjpal contributing factor being the customs receipts, which, compared with the proportionate part of tlie budget estimate, show an excess of £225,OCO. Thus it appeal's reasonably certain that, notwithstanding the Ottawa concessions, the estimate for the current year under this heading will be exceeded. The beer duty also discloses a small, but favourable, margin, which, it appears safe to assume, will bo maintained.

.Motor taxation as afhead of the estimate to the extent of £104,400, and although it he license fees payable in the earlier part of tlie year are to some extent responsible, it appears that the receipts will exceed the budget estimate. Any such additional revenue received, however, passes automatically to the main highways account, as provision lias been made for the retention by the Consolidated Fund of £500,000 only. 'Stamp and death duties show a proportionate increase of £25,000, but this can be regarded a® a normal monthly fluctuation, the present indications being that the receipts from this source will be closely in accord with the budget estimate.

Tlie land tax receipts', which were receivable at the end of November, disclose a shortage against the total estimate for the year of £62,000, but This will be reduced somewhat by additional amounts received during the last quarter.

The income tax is not payable until later in the year, and the amounts received are not yet comparable with the estimates. The present indications 11 iv, however, that the revenue from this .source will not fall far short of the. ©fjlij'nmto, jf it Js not wholly realised.

The interest receipts for the period are £355,100 behind the proportionate part of the budget estimate, but the indications are that, for the most part, the proportionate shortage against the estimate will adjust itself before the end of ..'the financial year. Certain .payments of the discharged soldier .settlement account are a somewhat uncertain factor, and the interest on public moneys may fall little short of the estimate for the year.

Other receipts disclose a total of £2,292,500 under the proportion of the estimate for the year, but .'this is principally due to receipts from reserves (£1,875,000) and from the post and telegraph profits (£202,500) not being receivable until later in the year. Otherwise these variations are due mainly to seasonal and accounting fluctuations, it being anticipated Hat the groin as a whole will he fairly closely in accord with the Budget estimate.

From a budgetary point of view, therefore, the revenue can he regarded ms satisfactory in that deficiencies under land tax, interest, and other receipts will be covered by an anticipated surplus in the customs revenue.

NINE MONTH'S EXPENDITURE. Turning to the other side of the accounts, the expenditure for nine months is illustrated as follows: Permanent Appropriations: Expenditure for the nine months ended December 31st., 1931, was as follows: Debt services, £7,708,555; proportion of tlio estimate for the current year, £7,515,178. Expenditure for the nine months ended December 31. 1932, £6,713,745; below proportionate estimate for current year, £796,433. Other .services. £1,690,897; proportionate of estimate, £1,449,522; expenditure, £l.113 008: below pronertioiia’.e estimates, £336,514

The annual appropriations figures ros i r>?"t'ively are (ns follows: Legislative, Prime Ministers Department and Finance: £303,007, £2(17,999, £276.991, £21,098. General Administration : £484,569, £703.670, £483,694. £277.066.

Low and Order: £451,077, £523,695, £469.244, £51.361.

ivp-me: 443, £473.332, £289,663, £LB3,G'S9.

M Livic-v of Public Bnihletc.: £44,333, £55.614, £21,707. £33,937.

Bevelopme it of Priman- n”J Seer.«d.v.,. Tntle. •'•!> • £575,-.! 17, £722,626 .£641.3,10, £11.310. Social S "vice etc.: £5.627,882, £5.182,138, £4.821.771, £360 367.

TLtin’ts: Expend itmre for nine months, 1*17,152,155; proportion of

estimates for current year, £10,980,714; expenditure for nine- months, £14,835,959; below proportionate estimate for current year, £2,144,755.

It will be observed that the debt charges are below the estimate by £796,633, which, for 'the most part, is due to the payments under the Repayment of the Public Debt Act, 1925, not yet having been made. This will adjust itself as the year -progresses. It is anticipated, however, that the interest charges will not quite reach the estimate as there will be a saving in respect of interest on Treasury bills. Similarly other permanent appropriat'ons disclose a nominal decrease of £333,514 in comparison with the budget estimate, being due for the most pV’lrt itvi the. fact that considerable nuns are not paid until towards the end of the financial year. It is expected that some further savings can be made under this heading. The variations under annual appropriations are, for the most part, due to accounting fluctuations, although in pome votes further savings are already in sight. Broadly speaking, the expenditure is less than the proportionate part of the budget programme for the year, and continues to dcinonstate that expenditure undyr all the main division's is well within the current year's estimates. Thus the accounting position continues, meantime, to reflect a satisfactory revenue tendency, whereas expenditure has been kept under clote control, and continues to reflect progressive economies which have been instituted, the outlook >as a whole, under the present indications, beino' that, in the aggregate, the reveslightly exceed the Budget estimate whereas the expenditure will discVo-e appreciable savings.

Accordingly, on the basis of the budget for the year, it is now anticipated Mint the budget deficiency will 1 e in the vicinity of £709,010. against £1,000,909 forecast. A certain amount ■of revenue, 1 owovev, will he collected this fina-imid v?ar under taxation proposals recently brought dovn, pi i m-i.rily, to cope with 'the prospective budgetary situation for the next financial’,'"year. This year’s deficit will he eormipondingly lessened,