NEW ZEALAND FINANCE

Wairarapa Times-Age, 2 March 1943, Page 3

NEW ZEALAND FINANCE

ACCOUNTS REVIEWED REVENUE AND EXPENDITURE. BUDGET SURPLUS PREDICTED. (By Telegraph—Press Association.) WELLINGTON, This Day. Revenue and expenditure of the Ordinary Revenue Account of the Consolidated Fund, the Social Security Fund and the War Expenses Fund for the nine months ended December 31 were announced last night by the Prime Minister, Mr Fraser. After reviewing the figures, Mr Fraser said it was clear that the public accounts generally maintained the healthy position to which reference had been made during the year. He was confident that the country could look forward to a satisfactory Budget surplus. The ordinary revenue for the nine months ended December 31, 1942, amounted to £24,322,000 as against £22,052,000 during a similar period the previous year. The expenditure was £23.870,000 as compared with £25,234,000. In connection with the Social Security Fund the receipts for the nine months totalled £9,229,000 (£8,555,000 in 1941) and the expenditure £9,789,000 (£7,892,000). WAR EXPENSES ACCOUNT.

NEW ZEALAND’S WAR EFFORT. “The above comparative statement of the War Expenses Account,” remarked Mr Fraser, “sufficiently shows the tremendous and increasing calls the Dominion’s war effort is making on our national resources. For the ninemonthly period under review, loan finance to the extent of nearly £52,000,000 has been raised, of which £5,990,000 only has been obtained from the United Kingdom Government in terms of the Memorandum of Security ar rangements. It will be noted that the major portion (£.28,997,000) of these loan funds has been obtained by the issue of war loans. National Savings contributions again show a gratifying increase. Taxation revenue, due mainly to increased rates of tax, has increased by approximately £10,000,000 to a total of £24,589,000, representing more than one-tenth of the national income. “It is when we turn to the expenditure figures that the necessity of raising ’ these vast sums will be appreciated. The expenditure figures for the three services, particularly the Army, all show substantial increases, and are a good indication on the financial side of the Dominion’s naval, military and air development. The subdivision of expenditure, ‘Civil,’ it may be explained, in addition to covering items of a purely civil character, is used in the nature of a suspense heading, to which is charged in the first place the cost of defence construction works, manufacture of munitions, etc., the charge being subsequently transferred to the appropriate Armed Service heading as soon as the allocation is known.”

9 months ended. December 31. 1941 1942 £ £ Receipts. Loans; Stock issued and advance sub scriptions 10,841,000 28,997,000 National savings 2,238,000 3,027,000 Treasury bills .... — 13,500,000 Memorandum of security .4,985,000 5,999,000 Miscellaneous 129,000 339,000 Total loans 18,193,000 51,853,000 War Taxation: Income tax 481,000 709,000 Stamp duties .... 2,800,000 3,708,000 Customs and beei’ duties 600,000 2,422,000 Sales tax 2,458,000 5,398,000 National Security tax 7,521,000 11,756,000 Miscellaneous 659,000 596,000 Total taxation .... 14,519,000 24,589,000 Transfers from Consolidated Fund 2,726,000 3,172,000 Miscellaneous receipts 1,786,000 4,493,000 Total receipts .... 37,224,000 .84,107,000 Expenditure. Navy 2,195,000 4,184,000 Army 17,000,000 39,754,000 Air 7,066,000 11,033,000 Civil 2,223,000 20,190,000 Rehabilitation — 40,000 Loans Redemption 7,323,000 168,000 Miscellaneous .... 70,000 — Total expenditure 35,877,000 75,369,000