REDUCED DEFICIT.

Auckland Star, Volume LXV, Issue 129, 2 June 1934, Page 12

REDUCED DEFICIT.

NATIONAL FINANCES.

REVENUE EXCEEDS ESTIMATE

HIGH EXCHANGE ITGTJRE.

Due mainly to revenue exceeding the estimate and expenditure savings being realised, the national deficit for the year, as foreshadowed, has been reduced from a contemplated shortage of £2,094,000 to an actual deficiency of approximately £709,000. On paper a surplus would have been revealed, but • for the part played by the exchange costs. The results are regarded as satisfactory by the Et. Hon. J. G. Coates, Minister of Finance, who reads in them evidence of an improvement in the country's economic position. The reduced deficiency, he explains, arises from revenue exceeding expenditure by £1,200,000, and sustained economies in expenditure producing savings totalling £255,000. Revenue Receipts. The Minister states that the revenue receipts may be summarised as under:— Excess Estimate Receipts over 1933-34 1933-34 Estimate £ £ £ Taxation .. 16,214,000 17,059,529 545.529 Interest ;... 2,531,000 2,563,836 312,856 Other receipts .. 3,540,810 3,509.063 28,253 22,305,510 23,402,748 1,156,93S In the taxation group practically all the items contributed to the improvement of £845,000 over the estimate, the main items being: Customs and beer duty, £290,000; sales tax, £97,000; stamp and death duties, £113,000; and income tax, £201,000. Mr. Coates adds that the improved position of the net railway revenue for the past year was 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 of £28,000 on the estimate. Most of the items assisted toward this result, the principal increases being: Registration and other fees, £9000; national endowment revenue, £19,000; territorial revenue, £05,000; and miscellaneous, £46,000. The Post and Telegraph Department's profit fell £95,000 short of the estimate, and the Justice Department's receipts dropped by £21,000>

24,456,546 24,202,027 254,819 . *Over appropriation. "It will be evident from the foregoing that the actual expenditure under all heads has been kept very close to the amount appropriated, the expenditure in most of the cases being slightly less than the amount authorised," Mr. Coates states. "The result has been attained through- the general recognition of the pressing need for economy, and the continued efforts to effect savings wherever possible. Exchange Costs. "In so far as exchange operations are concerned, the amount of £1,797,000 included in the expenditure charged against the Budget for the year represents 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 was £26,654,000, but this includes the £8,500,000 for normal requirements just referred to. The 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 was £20,094,000. As previously indicated, this amount will be taken over by the Reserve Bank."

Expenditure Items. The expenditure for the year was as under: — Appro- Ex- TJnder appriation penditure propria-1933-34. 1933-34. tion. £ £ £ Permanent Appropriations —■ Debt service 10,445,481 10,397,338 48,148 Highways . 1,179,000 1,201,837 22,83<* Exchange . 1,790,000 1,797,188 7,188* Other special 339,767 353,769 14,029* Annual Appropriations— legislative. Prime Minister's Ffnanc^ 3 393,129 371,674 21,455 General adSon 3 *™". 816,867 790,209 26,658 Iaw& order 699,094 673,274 25,820 Defence .. 688,948 662,108 26,840 Maintenance etc Wd ff'.' -00,600 72,403 18,197 Development of primary & secondtr?ei ndU !' 1,078,153 1,036,742 41,411 S °vi?es T.' 6,935,807 6,845,463 90,344