PUBLIC FINANCE

Otago Daily Times, Issue 26618, 14 November 1947, Page 6

PUBLIC FINANCE

HALF-YEARLY FIGURES

BUDGET EXPECTATIONS FULFILLED

“The public accounts for the halfyear ended September 30 disclose a satisfactory position with taxation receipts representing 90 per cent, of the Budget’estimate.” said the Minister of Finance, Mr Nash, to-day in a statement presenting a summary of the accounts. "The corresponding figure for the first half of last year was 95 per cent., the position then being affected by the fact that higher rates of sales, tax were payable for the first six months of 1946-47. “The most notable feature of the period just ended,” said Mr Nash, “is an increase in Customs revenue over the additional figure provided for in the Budget. The sum paid to date, £11,045,000, is up by £895,000 on the estimates, and this included a record monthly collection of £2,332,000 in September. A variation in the arrival of ships can cause considerable fluctuations, but United Kingdom imports have been rising steadily, and there has also been an improvement in the availability of goods shipped from European countries. On the other hand, imports from dollar countries are likely to decline. “Sales tax revenue at £6.607,000 is £1,043,000 less than the proportionate estimate, but it has always been found that the receipts from this source are greater over the Christmas period and the summer months.”

Mr Nash said that in the case of profits from trading undertakings, £1,953,000, the amount represented nearly the full year’s revenue because all the trading profits due for payment had been received except the second half-year's dividend from the Bank of New Zealand shares.

“ Consolidated Fund expenditure under permanent appropriations for the half-year is shown as £14,754,000 against an estimate of £11,761,000,” the Minister continued* “ This is accounted for mainly by the fact that full annual provision for the repayment of public debt, £4.367,000, has already, been used for debt redemption. The payments to date from the annual appropriations total £33,276,000, compared with the half-year's estimate of £40,997,000. Here, allowance must be made for the fact that the accounting returns are incomplete at this time of the year, with the result that the final debits have not yet been charged against the votes in many cases. This position is quite normal and will adjust itself later in the year. “Imprests outstanding, £4,559,000, is an account which records these commitments where entries are in transit. The proportion of the vote expenditure actually recorded to the end of the half-year compared with the half-year's estimate is 81 per cent., which is the same figure as for the first half-year of 1946-47.”

In general, Mr Nash added, the expenditure was following the lines anticipated. The position for the six months to September 30 was shown in the following tables:— CONSOLIDATED FUND Receipts Taxation—

Mr Nash said that the receipts into the Social Security Fund from the charge on wages and incomes weie slightly higher than had been anticipated. To the payments from the fund recorded for the half-year must be added the advances to imprestees, bringing the actual commitments up to £19,700,000 by the end of September. The equivalent figure for the expenditure at this date last year was £18,000,000. War Expenses Account

The War Expenses Account had been funded in part by the transfer of £4,600,000 from the Consolidated Fund as outlined in the Budget. In addition to this, the disposal of war assets and miscellaneous receipts had produced a further £2,800,000 during the past six months, making a total of £7,400,000 available. Against this, the expenditure on the armed services amounted tc £2,200,000. while rehabilitation and gratuities had cost £3,000,000. This left a cash balance at September 30 of £2,200,000, and these figures supported the view expressed in the Budget statement that it should be ■possible for this account to be wound up without the need for using additional loan moneys.

Budget Actual Estimate £ £. Customs .. .. 11,045,000 10,150,000 Beer .. .... 1,953,000 2,185,000 Sales Tax .. .. 6,607,000 7,650,000 Film Hire 57,000 65,000 Highways . .. 1,919,000 1,650,000 Stamp Duty .. 4,263,000 4,500,000 Land Tax .. .. 66,000 475,000 Income Tax .. National Secur13,092,000 17,750,000 ity Tax .. .. 772,000 380,000 Miscellaneous .. 32,000 50,000 Taxation Totals Interest froitT 39,806.000 44,855,000 Trading Activities .. .. 2,G29,000 2,750,000 Profits from Trading Undertakings .. 1,953,000 1,080,000 Departmental 5,703,000 5,745,000 Receipts .. .. Total Receipts 50,091,000 54,430,000 EXPENDITURE Permanent Ap- - propriations .. 14,754,000 11,761,000 Annual Appropriations— 8,000,000 Social Security Other Social 8,000,000 9,493,000 Services 8,436,000 Armed Services 2,889,000 5,067,000 Stabilisation 6,112,000 6,730,000 Other Votes .. 7,839,000 11,707,000 Total Afinual 40,997,000 Appropriations Total Expendi33,276,000 52,758,000 ture .. •• 48,030,000 SOCIAL SECURITY FUND Receipts Social Security 11,850,000 Charge .. .. 12,606,000 Miscellaneous .. Transfer from 25,000 13,000 Consolidated Fund .. •. 8,000,000 8,000,000 Totals ■ ■ • • 20,631,000 19,863,000 Expenditure Monetary Benefits .... 7,341,000 9,684,000 Family Benefits 5,665,000 6,597,000 Medical Benefits Administration 3,257,000 3,246,000 Expenses and Emergency Benefits .. .. 364,000 492,000 Totals .. • • 16,627,000 20,019,000