PUBLIC ACCOUNTS

Manawatu Standard, Volume LVIII, Issue 52, 29 January 1938, Page 10

PUBLIC ACCOUNTS

expenditure.

INTERIM ANNOUNCEMENT. POSITION ESSENTIALLY SOUND WELLINGTON, Jan. 29. Revenue and expenditure figures for the expired nine months of the current financial year were announced last evening by the Minister of Finance (Hon. W. Nash). These show that revenue amounted to £20,740,000 and expenditure to £21,930,000. The largest individual item of revenue was £8,194,000 obtained from Customs taxation. The sales tax, which produced £2,683,000, was the next most profitable source of revenue. Mr Nash said it was impossible at the present stage to speak with any certainty as to the final results for the year, but the revenue position showed that the Dominion generally was in a prosperous condition, and that the financial position was essentially a very sound one.

Mr Nash said that the public accounts for the nine months ended December 31 had now been completed, and that as soon as they had been audited the usual particulars would be published in the Gazette. In the meantime he was able to supply a summary of the position as disclosed by the figures. The revenue credited to the Consolidated Fund during the nine months amounted to a total of £20,740,000, compared with £18,588,000 received during the same period of the previous financial year, an increase of £2,152,000. Receipts under the principal headings of revenue compare as follow:

“It will be noted from these statistics,” said Mr Nash, “that to date the revenue from taxation alone totals £18,306,000, which is £2,146,000 in excess of that received to the end of December, 1936. An increased revenue was, of course, provided for in the current year’s Budget, but it is interesting to note that the percentage of receipts to date— which is probably the most reliable indication of the position is identical for both periods of nine months, indicating that the estimates are being very closely adhered to. “All tne major headings of taxation, with the exception of land tax, have contributed to the increased revenue, particularly in respect of customs and sales tax.. In regard to land tax, a reduction in revenue, as compared with the previous year, was provided for in the Budget. . . “The most uncertain item is, of course, in respect of income tax, winch is estimated to provide a total of £7,500,000 for the year, ot_ which amount £983,000 has been received to date. It is pointed out, however, that as in previous years, the great bulk of this tax is paid immediately prior to the final date before the imposition of a penalty, namely, March 1. Based on. the returns which have been examined to date, however, it is anticipated that the Budget estimate will be fulfilled. In regard to the expenditure, Mr Nash stated that the total for the nine months was £21,930,000, compared with £26,044,00, being the proportionate amoilnt of the year’s appropriations, as follows:

‘Above proportion,

“The foregoing statistics,” said Mr Nash, “disclose that on a cash basis the total expenditure to date is £4,114,000 less than tlio relative proportion of the year’s appropriations, permanent appropriations being underexpended to the extent of £2,052,000 and annual appropriations to an amount of £2,062,000. This apparent saving, however, is subject to the import qualifications, first, that the largest single item, namely, ‘debt services,’ will be fully expended by the end of the financial year, the apparent saving at date being due to the fact that certain debt repayment moneys will not be utilised until the end of the financial year; and, second, expenditure during the last quarter is invariably heavier than during the other quarters as a result of the substantial grants, etc., which are paid during that quarter. “It is, of course, impossible at this stage to speak with any certainty 7 as to the final results for the year, but present indications show that the revenue is adhering very closely to the estimate, while some saving is being effected in regard to expenditure. The revenue position shows that the Dominion generally is in a prosperous condition and the financial position is essentially a very sound one.”

REVENUE. Percentage of receipts to December 31 to April Ito December 31, estimated actual -■cm 1936. revenue for levenue toi

£ £ 1937-38. 19361 75 72 Customs 8,194,000 7,126,000 ... 78 Beer duty 713,000 607,000 ... / 5 74 74 7o 75 2,683,000 2,262,000 ... Highways Stamp and death 2,162,000 1,868,000 -... 71 duties 2,529,000 2,378,000 ... 94 12 Land tax 888,000 987,000 ... 89 Income tax 983,000 780,000 ... 69 Miscellaneous .... . 154,000 152,000 ... 18,306,000 16,160,000 ... 60 60 59 56 Interest 1,079,000 1,410,000 ... 47 Other receipts ... 1,355,000 1,018,000 ... 63 20,740,000 18 588,000 ... 60 60

Proportion of appropriations. appropriations: £ Debt services ... -7,047,000 Highways 2,295,000 Exchange 1,275,000 Other services ... 449,000 Expenditure to 31-12-37. £ 5,306,000 2,067,000 1,323,000 318,000 Under proportion. £ 1,741,000 228,000 48,000* 131,000 11,066,000 9,014,000 2,052,000 Annual appropriations: Social services .. Other votes ,. 9,081,000 ,. 5,897,000 8,150,000 4,766,000 931,000 1,131,000 14,978,000 12,916,000 2,062,000 26,044,000 21,930,000 4,114,000