FALLING REVENUE

Rotorua Morning Post, Volume 2, Issue 442, 28 January 1933, Page 5

FALLING REVENUE

BIG DECREASES COUNTRY FACED WITH A SUBSTANTIAL DEFICIT UNPLEASANT FIGURES Wellington, Friday. In the course of a lengthy review. of the revenue position Mr. Coates told the House that he anticipated that the Customs returns would probably show a falling off of £1,400,000 for the year. The position with regard to other items may he summarised as follows: — REVENUE INCOME TAX Tentatively a' eomparative deerease of £75,000 is being allowed for. Stamp and Death Duties Deciieases in valuations will adversely affect death duties. The net deerease in the revenue is estimated at £250,000. Interest Receipts Interest receipts from the railways will be directly affected by the proposed reduction in freight' charges and with a further probable decline in the receipts from other investments the net shrinkage is estimated at £220,000. P. and T. Profits) This department will no more than malce ends meet next year The revenue shrinkage hy the amount anticipated to come to lxand this year is £470,000. Other Items The remaining items of revenue will all be more or less affected, giving a net deerease of £260,000. Reserves This ye'ar's revenue will include £250,000 to be derived from the liquidation of reserves invested in discharged soldiers' settlement mortgages. Special arrangements have been made for the liquidation of these mortgages by way of hypothecation of the securities. EXPENDITURE To arrive at the net budgetary shortage on the other side of the accounts we have to eonsider what additional items of expendi ture have to be provided for: — — Exchange Under the exchange pool arrangements the expenditure on exchange for this year will not exceed £350,000. For next finaneial year the inerease in the exchange rate adds a, further £1,050,000. Debt Charges The estimated inerease in expediture under this head is £350,000. Highways Revenue As part of the Budget for the current finaneial year provision was made to retain in the Consolidated Fund up to £500,000 of the revenue. If it is not extended the result will he a eomparative inerease of that amount in the expenditure of the Consolidated Fund. Pensions Provision will have to be made for a further £50,000. SUMMARY SHORTAGES It would appear that we are faced with a gap in the finances of £9,850,000 made up as follows: — Equivalent of' current year's shortages £70,000. ^ Revenue Decreases Customs, £1,400,000. Income Tax, £750,000. Stamp and Death Duties, £250,000. Interest receipts, £220,000. Post and Telegraph profits, £470,000 Other items, £260,000. Reserves, £2,500,000. Expenditure Increases Exchange, extra cost external debt charges on account of full year at £350,000. Extra cost of external debt charges by reason of exchange inerease to 125 per cent., £1,050,000. Allowed for cost of exchange on surplus bank funds in London, £1,000,000. Total £2,400,000. Other items additional interest and other debt charges £350,000. Motor taxation, payable to Main Higbways Fund, £500,000. Pensions, £50,000. Total, £3,300,000. Grand Total, £9,850,000.