PUBLIC ACCOUNTS

Rotorua Morning Post, Volume 1, Issue 60, 2 November 1931, Page 3

PUBLIC ACCOUNTS

("Post" Special Commissioner)

FUTURE OUTLOOK RECEIPTS AND EXPENDITURE BOTH SHOW DECREASE EXPORT PRICES RISING

WELLINGTON, Saturday. The public accounts for the first half of the financial year were published to-day in a Supplementary Gazette. Commenting on the figures the Minister of Finance, the Hon. W. Downie Stewart, stated that it would be seen that the revenue of the Consolidated Fund for the period amounted to £7,347,379, compared with £9,057,880 for the corresponding period last year, a decrease of £1,710,501. However considerable shrinkage in revenue was allowed for in the Budget and this decrease does not indicate the financial position of the year. Receipts from taxation amounted to £5,560,814, for which £2,662,634 was derived from customs duties. The year's estimate for this item was substantially reduced in the Supplementary Budget, and compared with the appropriate proportion of the amended estimate receipts are approximately £365,000 behind. The outlook is still somewhat obscure but in view of the rising tendency of our export prices there is a reasonable prospect that some improvement may take place in thfe remaining portion of the year. 0 The revenue from stamp and death duties is about £500,000 less than that received for the corresponding period last year, but a substantial falling off was anticipated and receipts are only about £189,000 short of the proportionate part of the estimate for the year. The Largest Item The largest item concerned was death ditties, which is incalculahle except on a basis of averages and which fluctuates from month to month. Lower values and difficulty in realising on property was 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 corresponding six months of 1930, but this revenue was earmarked for roading purposes and does not assist the Budget. Receipts from beer duty and film hire tax are in accord with the estimates, while the position in regard to land and income tax will not be known until later in the year. Interest receipts for the period compare quite favourably with the amount received during the first half of last year, while other receipts show a sliglit increase due to the introduction of additional items. On the other side of the account the net expenditure for the six months amounted to £11,463,796 compared with £12,237,467 for the corresponding period last year. Comparison of Proportions In view of the changes made, however, the most useful comparison is with the proportion of the estimates for the year. Following is the comparison on this basis: —

Giving a balance of £918,094 in favour of nnder proportion. The large under proportion shown for other permanent chai-ges is largely nominal, being due to accounting fluctuations and ontstanding payments. It is anticipated the expenditure under permanent appropriations will be in accord with the estimates for the year. The position in regard to expenditure under the annual vote is quite satisfactory although not as good as the figures indicate as the estimates for the year have to be reduced in accordance with the supplementary financial statement. In general, added the Minister of Finance, expenditure is being lcept within the estimate, but the position in regard to revenue particularly from customs, stamp and death duties is still somewhat uncertain, though improving. The economic outlook gives some grounds for the hope that it may come up to our amended expectations concluded Mr. Stewart.

Pro. of Est. Net Over Expnd. Prop. £ £ £ Civil List 14,336 15,300 964 Debt Services 5,213,686 5,373,407 159,721 £160,685 Other Perm. Under Pro. Charges 3,611,930 2,980,468 631,462 An. Votes 3,541,938 3,094,621 447,317 Tis. £12,381,890 11,463,796 1,078,779