BALANCED BUDGET

Ashburton Guardian, Volume 56, Issue 98, 6 February 1936, Page 7

BALANCED BUDGET

“Turning to the percentage figures in the last two columns,” said the Minister, “it will bo seen that of the main headings of taxation, the percentages for customs, beer duty, and stamps show a better position than last year. Sales tax is slightly down, but it is likely that this is through accounting fluctuations rather than to au actual fall in revenue. Highways is also down, but this is purely temporary, and will be adjusted before the end of the year, as explained above.

MINISTER SEES A PROSPECT. ACCOUNTS FOR NINE MONTHS. REVIEW BY HON. W. NASH. (Per Press Association.) WELLINGTON, February 5. A review of tlie budgetary position for the nine months ended December, 1935, is published in the Gazette today. On the revenue side the comparative positions of the principal items are set out. in a table. As revenue does not come in evenly during the year, and the amount to be received under various heads varies from year to year, a comparison of the actual receipts with thoso of the corresponding period of the previous year does not always give a true view of the position. The last two columns, showing the percentages have therefore been added as giving a better guide to the position from the budgetary point of view.

“Indications are that the estimate for stamp revenue, which was reduced for the current year, will be more than maintained. The percentage decrease under other taxation is of little significance, as the chief tax coming under this head—income tax—was not due at December 31. Land tax. which also comes under this head, shows a decline, and though amounts are still coming in, it is now anticipated that the amount of this tax at the end of the .year will he slightly less than the budget estimate. The total percentage under interest is sliglily more than that for last year, and indicates that revenue under this heading is keeping up the estimate. The much lower percentage oi other receipts is caused principally by the profits, on the sale of gold coin received last year, as already explained. -“The total expenditure is £900,000

Revenue.

In the following table are shown the receipts for the nine months to December 31, 1934 and 1935, and the differences between the two figures The fourth column gives the percentage of the receipts to Decembei 31, 1934 to the total revenue for the year, and the last column the percentage of receipts to December 31, 1935, to the estimated revenue lor the year.

Expenditure, On the expenditure side the position is set out in the following table. The first column gives the proportionate part of the appropriation for the nine months to December 31, the second column the amount actually spent, and the third column the difference.

The Minister for Finance (the Hon. Walter Nash) stated that the figures disclosed a satisfactory position. Taking actual receipts, taxation showed an increase of £130,000 compared with last year. Interest and other receipts disclosed decreases of £163,000 and £1,247,000, but this Avas in accordance with the estimate for the year, the large decrease under other receipts boing through the receipt in the previous year of substantial profits from the sale of gold coin. The main increases in taxation were: Customs £397,000, beer duty £17,000, sales tax £215,000, and other taxation £28,000.

less than the proportionate part of the appropriations for the year, but it is not expected that this position Avill be maintained, as fairly largo payments have to be made in the final quarter of the year. The increase shoAvn under debt services is caused chiefly by money being applied lor redemptions earlier in the year, nearly the Avholc of the debt repayment moneys having already been utilised, and also because a considerable amount of interest duo from other accounts at December 31 has not been recouped to the Consolidated Fund.

“The increase under exchange is purely temporary, and is because exchange commitments have been met early in the year. “Generally speaking, it appears that revenue av ill bo avcll up to the estimate, and expenditure Avithiu the appropriations, avlicu the accounts are completed for the year. Thus t:.o prospects are that the year Aviii cloro '•alth a balanced budget.”

Highways and stamp duties showed decreases. The decrease in highways was purely nominal, being caused by an alteration in the method of collection this year, and Avould adjust itself by March 31. Stamp duties were expected to slioav a decrease, as receipts for the' previous year were abnormal, exceeding the estimate by nearly £BOO,OOO.

Per Per 1931 1935 Difference cent. cent. £ £ £ 1931 1935 Customs revenue ... 3.56-1,300 5,961,215 396,915" 71.95 75.45 (increase) Beer duty 500,512 518,214 17,702 75.59 70.77 (increase) Sales tax ... 1,622,911 1,838,200 215,256 74.77 74.27 (increase) Highways ... 1,164,572 1,459,101 5.471 (decrease) 76.66 71.52 Stamps, etc ... 2,611,817 2,089,504 522,313 (decrease) 74.18 77.10 Other taxation ... 1,552,120 1,580,473 28,353 34.63 32.12 (increase) Total taxation ... 13,316,265 13,446,707 130,442 65.99 64,89 (increase) Interest ... 1,659,246 1,496,647 162,599 56.62 57.25 (decrease) 47.16 Other receipts ... 2.382,951 1,135,811 1,247,140 78.95 (decrease) Total revenue ... 17,358,462 16,079,165 1,279,297 66.44 62.46 (decrease)

Appropriation Expenditure Difference Debt Services — o 7,118,508 Permanent appropriations ... 7,080,711 337,79/ (over) "Exchange ... 1,227,000 1.388,452 161,452 (over) Highways ... 1,030,750 1,319,817 210,933 (under) Other services ... 476,917 270,391 206,526 (under) Total ... 10,315,378 10,397,168 81,790 Annual Appropriations— ... 5,716,015 (over) Social services 5,389,680 356,335 (under) Other votes ... 3,317,435 2,691,722 625,713 (under) Total ...19,378,828 18,478,570 900.258 funder)