PUBLIC ACCOUNTS

Ashburton Guardian, Volume 62, Issue 8, 21 October 1941, Page 8

PUBLIC ACCOUNTS

. FIGURES FOR FIRST SIX MONTHS INCREASES ON LAST YEAR. % (P.A.) WELLINGTON, October 20. The Minister lor Finance (the Hon. W. Nash) to-night released details of the ordinary revenue account of the Consoldiated Fund, the Social Security Fund, and the War Expenses Account for the first six months of the current financial year. Mr Nash said that revenue of the ordinary revenue account for . the six months totalled £14,7.35,000, compared with £14,589,000 for the same period last year. Expenditure was £15,763,000, as against £15,206,000 last year. In the following comparative statement of revenue, the four groups of figures .given after each item of taxation represent (1) the revenue (in thousands of pounds) for the six months ended September 30, 1940; (2) the revenue (in thousands of pounds) for the six months ended September 30 1941; (3) the percentage for the six months to the total for the year 194041; and (4) the percentage for the six months to the estimated/ revenue for the year 1941-42.

"‘The statement shows,” continued Mr Nash, “that revenue collections are being maintained, and that as far as can be judged at present, estimates for the year are likely to be realised. It will be noticed that during the first half of the year 37 per cent, of the estimated revenue for the year has been received, compared with 36 per cent.- last year. The corresponding taxation figures are 37 and 35 per cent, respectively. Variations on the whole are relatively light, indicating close adherence to the Budgest estimates. Expenditure. In the following summarised expenditure statement for the period, the four, figures given after each item represent (1) expenditure for the six months ended September 30, 1940; (2) the expenditure for the six months ended September 30, 1941 both ini thousands of pounds; (3) the percentage of expenditure for the six months to the. total for the year 194041; and (4) the percentage of expenditure to the estimated expenditure for the year 1941-42. Permanent appropriations

■ ‘'Expenditure for the first six months idf'the year,” said Mr Nash, “is 40 per cent, of the estimate for the year, •showing close correspondence with last year’s 39 per cent. The principal variation under permanent appropriations is debt services, which shows a decrease of £312,000. This decrease is ■.accounted for mainly by the repayment of debt amounting to £718,000 during the period last year, although this was offset to the extent of £380,000 by increased interest payments this year. The percentage figure for the expenditure on exchange shows a considerable increase, but this is largely due to expenditure during - the period which will not be recovered until later in the year. “Under the heading of social ser- • vices,” said Mr Nash, “there is an increase of approximately £300,000 m expenditure under the health vote. This is due to increased subsidies to ~ hospital boards. On the other hand, however, while a transfer of £400,000 to the Social Security Fund was effected during this period last year, no transfer to this fund so far has been made this year. “ Expenditure under the vote war and other pensions,’ amounting to £657,000. was £160,000 loss than the corresponding figure last year, the decrease being due to the fact that fcep- ; temher expenditure for this year had ' not been charged to the vote when the accounts for tfie period closed, lhe amount so involved was £155,0000. "' Mr Nash said that the group “other votes” showed a considerable increase in expenditure. This was partly accounted for by the increase m expenditure under the agricultural vote from £662,000 for the first six months of last financial year to £1,001,000 for the same period this year, due io the payment of subsidies on raw materials used for the manufacture of superphosphate. The vote for the maintenance of public works and services increased from £570,000 to £1,400,000, hut this variation would be adjusted when recoveries were effected later in the year from the War Expenses’Account. The expenditure under the remaining votes showed little variation, and it would be noted that, as with total revenue, the total expenditure corresponded very closely to, the Budget estimates. Social Security. Reviewing the Social Security Fund •for the six months ended September 40t-4f141-, -Mr Nash said revenue to..tailed £5,787,000, while the rorros■“ponding "figure for this period last year

was £6,040,000. The decrease of £253,000 was mainly accounted for by the transfer from the Consolidated Fund of £400,000 during the first six months last year, whereas this year no such transfer had been necessary to date. Social Security charge collected during the period totalled £5,375,000, which was approximately £25,000 less than the amount for the same period last year. Registration fees amounted to £392,000, an increase of £179,000, but this was an accounting variation which would be adjusted later in the year.

Expenditure from the fund for the first half of this financial year was £4,532,000, which was a substantial decrease compared with the total oi £5,144,0CX) for the same period last year. This was accounted for by the fact that detailed accounts were not to hand from imprestees in time for inclusion in the accounts for the period. Imprests outstanding at September 30 last amounted to £1,891,000, compared with £957,000 at the same date last year. If this adjustment were made, the comparable expenditure for this year would he- £5,392.000, an increase of £248,000. ' War Expenses. “The revenue of the War Expenses Account for the first six months of this financial year was £10,399,000, compared with £4,076,000. for the same period last year,” said the Minister. •'This large difference is due, of course, to the fact that_special war taxes have been in operation for the full six months of the current financial year whereas last year they were not imposed until toward the end of the period. Loans raised amounted to £13,458,000 for the period, as against £3,826,000 for last year. Of the total of £13,458,000, war loan stock issued amounted to £9,225,000, and national savings accounts and investments aggregated £1,728,000. The sum of £2,425,000 was raised under the memorandum of security arrangement with the United Kingdom Government, and £39,000 was lent, interest free, during the period. “Expenditure for war purposes during the last six months amounted to £14,999,000, compared with £6,333,(MX) for the same period last year. This large comparative increase is an indication of the greatly accelerating .- ate of the Dominion’s war effort, and iefiects the necessity for heavy calls being made on the financial resources of the community. In addition to the expenditure of £14,999,000. the whole oi the balance owing to the United Kingdom Government as at March 31 last consisting of the memorandum of security (£4,516,000 sterling), representing war expenditure overseas, and Treasury notes (£41,000 sterling), representing import credits, was repaid during the last six months, in accordance with the Budget undertaking. Thus, at March 31 last, the whole of the amount which has been brought to charge overseas against the Dominion in respect of the war has been repaid. This repayment must be regarded as a very creditable effort, and reflects the Government’s decision to restrict to the absolute minimum its demands on the United Kingdom Government’s financial resources. “On the whole,” concluded the Minister. “the accounts show a healthy position and give good grounds for saying that the final results for the year should be quite satisfactory."

Customs . £ 4571 £ 4097 53 43 Beer duty • 711 711 44 4S Sales tax , . 1647 1618 47 49 Highways . . 1360 1490 57 60 Stamp duties . 782 887 46 52’ Land tax . , 47 69 5 - 7 Income tax (and excess profits tax) • • \ 3063 3569 19 22 Miscellaneous . • 95 107 43 49 Totals . . 12276 12635 35 37 • Interest .. • # 1197 1068 36 34 Other receipts ♦ 1116 1032 49 43 Grand total 14589 14735 36 37

£ £ Debt services . . 4513 4201 38 38 Highway's . . Exchange . . . . 1294 . 766 1258 763 54 32 58 48 Other services . 100 153 20 8 Total . . . 6673 6375 39 38 Annual appropriations38 31 Social services . 4474 4111 Other votes . 4060 5277 42 b4 l - . Grand total .15207 15763 39 40