PUBLIC FINANCE

Ashburton Guardian, Volume 54, Issue 197, 2 June 1934, Page 3

PUBLIC FINANCE

THE EXCHANGE OPERATIONS.

REVIEW BY MR COATES.

(Per Press Association) AUCKLAND, June 1

The audited accounts for the past financial year were released by the Minister of Finance to-night. Commenting upon the results disclosed the Minister said that, as announced in his preliminary statement issued shortly after the close of the financial year, -the net result of the year’s transactions is that the Budget deficiency has been reduced to about one-third of what was anticipated. when the Budget was brought down. “The deficiency has now been defined as approximately £709,000,” he said, “a result which, when all factors are taken into consideration, must be regarded as very satisfactory and a further indication that the economic position of the Dominion is improving. The shortage, as contemplated in the Budget, was £2,094,000, but arising out of the fact that revenue has exceeded expectations to the extent of £1,200,000 and sustained economy in all avenues of expenditure resulted in savings totalling approximately £255,000, the deficiency has been reduced to £709,000.

Revenue., The revenue receipts, shown in detail in the gazetted accounts, are summarised as follow: Estimates. Receipts. Excess. £ £ £ Taxation 16,214,000 17,059,829 845,829 Interest 2,551,000 2,863,856 312,856 Other receipts 3,540,810 3,569,063 28,253 Total 22,305,810 23,492,748 1,186,938 “In the taxation group practically all items contributed to the improvement oyer the estimate of £845;000, the main items being Customs and beer duty £290,000, sales tax £97,000, stamp and death duties £113,000, and income tax £261,000.

“The improved position of the net railways revenue for the past year is almost wholly responsible for the increase of £312,000 in interest receipts, the excess in this item alone being £294,000. Other receipts showed an improvement in the total on the estimate of £28,000. Most of the items assisted toward this result, the principal increases being registration and other fees £9OOO, Nation4l Endowment revenue £19,000, territorial revenue £65,000 and miscellaneous £46,000. , , The Post and Telegraph Department’s profits fell £95,000 short of the estimate, and. the. Justice Department receipts by £21,000. Expenditure.

Annual Appropriations-

"It will bo evident from the foregoing that the actual expenditure under all heads lias been kept very close to the amount appropriated, expenditure in most of the cases being slightly less than the amount authorised. The result has been attained through general recognition or the pressing need for economy anc continued efforts to effect savings wherever possible. Exchange. / “111 so far as exchange operations are concerned the amount of £1,797,000 included in the expenditure charged against the Budget for the yeai iepresents the net cost to the Consolidated fund of purchasing £8,500,000 for normal requirements in London and Australia. The total amount of sterling purchased under the Banks Indemnity (Exchange) Act during the financial year amounted to £26,684,000, but this includes £8,500,000 for normal requirements just referred to. Surplus sterling taken over thus amounted to £18,184,000. Adding- £1,910,000 surplus sterling taken over during the previous financial year the total amount of surplus sterling held on March 31 last amounted to £20,094,000. As previously indicated this amount wdl he taken over by the Reserve Bank.’

—Permanent Appropriations— Expendipriation. ture. £ £ Debt services 10,445,481 10,397,333 Highways .... 1,179,000 1,201,837 Exchange Other special 1,790 ! ,000 1,797,188 acts and services 339,707 353,790

Appropriation. Expenditure. £ £ Lo g i s1 a tive, Prime Minister’s Dept and finance 393,129 371, G74 General administration S1G,8G7 790,209 Law and order 099,094 073,274 Defence 688,948 062,108 Maintenance of buildings, etc*, 90,000 72,403 Development of primary and secondary industries 1,078,163 1,036,742 Social services G,935,807 G,845,463 Totals 24,456,840 ' 24,202,027