IMPROVING.

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 10

IMPROVING.

NATIONAL FINANCES. MR. FORBES' CLAIM. HALF-YEARLT ACCOUNTS. EXPENDITURE £1,929,000 LESS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. An abstract of the transactions in the ordinary revenue account of the Consolidated Fund during the six months ended September 30' was made available to-day. The position in comparison with that for the first half of last year is disclosed in the following summary:— Six months. 1932.-33. 1931-32. Decrease. Revenue ... £7,317,231 £7,347,379 £30,148 Expenditure— Permanent) n k-j n 8,369,175 Annual ..) <*.»».5»« 3,094,621 9,534,370 11,463,796 1,929,226 Excess -. £2,217,339 4,116,417 £1,899,078 Commenting on the results '-i. or the six months, the Prime Minister, the Right Hon. G. W. Forbes, said that on the revenue side there was, torn pared with the corresponding period of last financial year, a decrease of approximately £30,000. "A more important comparison, bowever, is with the Budget for the year," continued Mr. Forbes, "and in this respect I am pleased to eay that on a proportionate basis the various items of taxation, apart from land and income tax, which are not due for' payment until later, are generally well up to expectation. Customs Revenue Rising. receipts show an excess of £130,000, with, the best importation period still to come, but against this allowance has to be made for.the loss of £250,000 of revenue arising out of the concessions under the Ottawa agreement. Stamp and death duties are approximately £130,000 behind on a proportionate basis, but this item is normally subject to fluctuations from month, to month. Duties and licenses from motor vehicles are £109,000 ahead, but this is largely due to license fees being payable in the earlier part of the year. interest receipts from railways, the '"Post and Telegraph. Department, the Public Debt Redemption Fund and other sources weic £250,000 less than for the six months of last year, and £390.000 behind .on the proportionate part of the Budget estimates. No significance attaches to this, as,the receipts are not spread evenly over the year. There is no reason to believe the Budget estimates for these items will not be reached. "In regard to 'other receipts' (under which are grouped Departmental receipts and various miscellaneous items of revenue), the amount credited during the six months, apart from the Post Office will come * to., band later, is in total equal to that for the same period of 1931. The position may therefore be regarded as satisfactory. Expenditure Within Estimates. "On the other side of the account, the expenditure for six months amounted to .£9,534,570, compared with £11,463,796 for th» corresponding period of 1931. There was thus a satisfactory decrease of £1,929,226. Compared with the proportionate part of the estimates for the year the expenditure for the period compares as follows*—Debt charges were £870,000 below the proportionate part of the estimate, but this is purely nominal, being due to the fact that the amount provided" for debt repayment has not yet been utilised. Under 'other permanent appropriations,' the expenditure is £148,000 behind the estimates, but this also is largely due to accounting fluctuations. "Under annual, votes, the expenditure was approximately £700,000 less than the proportionate part of the estimate, and even wben allowance is made for outstanding imprests amounting to £634,000, largely representing expenditure incurred but not yet brought to charge, it will be seen that expenditure is being kept within the estimates. "To sum up the whole position, the more stable tendency in revenue is maintained, wbile expenditure has been kept under close control, and continues to reflect the'economies made. The estimates of both revenue and expenditure submitted in the Budget can therefore be accepted with confidence, as there is every indication that the results for the year win be fairly closely in accord with the forecasts made. I may sayj however, that the position in regard to income tax will not be known until toward the close of the year." "Aim for Balanced Budget." Me. Forbes said that members would no doubt recognise the statement was a satisfactory one,' showing that the estimates on which the Budget had been prepared, and the estimates for the coming year, were neing maintained. This was one of the first times on which they had been able to say the financial position was improving. "There is no doubt," said Mr. Forbes, "that we must aim- for a balanced Budget. We must make sure we don't spend -more money than we receive. The same thing applies to the country as to the individual. If the individual cannot pay his way his reputation for soundness is seriously impaired." Mr. Forbes said that it bad been shown already that the advice of New Zealand economists was just as valuable as the advice that bad been given by economists in other countries. ' The New Zealand Government was trying to exercise every possible economy. "We are .working towards a balanced Budget," be said, "and we have made arrangements whereby we can have a political party that is in a position to carry these things through." ' Mr. W. J. Jordan (Labour, Maniikau): A happy family. You will bust up. Mr. Forbes said that when the time came that they could balance then* Budget an advantage would be felt by every section, of the community.