STATE FINANCE.

Auckland Star, Volume LXVIII, Issue 29, 4 February 1937, Page 15

STATE FINANCE.

INCOME UP £2,508,000'

CUSTOMS IN THE LEAD. STRONG BUDGET POSITION. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. The public accounts for the nine months ended December 31 have just been completed, and will appear as a supplement to this week's "Gazette." Receipts for the nine months are £18,587,000, an increase of £2,508,000 compared with the figure for the first three-quarters of last financial year, while expenditure totals £21,082,000, an increase of £2,603,000. A comparison in tabular form is a* follows. Nine Months 1936-3" 1935-36 Increase £ £ & Revenue 18.587,000 16,070,000 2,508,000 Expend. 21,082,000 18,479,000 2,603,000 Deficit 2.4&5.000 2,400,000 95.000 Customs Receipts Swelled. In reviewing the accounts, the actingMinister of Finance, Mr. 'Savage, drew attention to the satisfactory position which they disclose. The increased revenue arose principally in respect of Customs duties, land tax and sales tax as shown by the following table: —

Taxation 1936 37 1935-36 Increase £ £ £ Customs .. 7,136,000 5,!>R1.000 1,165,000 B««r doty.. 607.000 518,000 SO.OOO Sales tax.-. 2,252,000 1,1*38,000 424,000 Highways 1,897,000 1,4,50.000 408,000 Stamp*, etc. 2,378.000 2,0»0,000 288,000 : Land tax . . 987,000 433.00)> 554,000 Other taxes 933,000 1,147,000 *214,000 16.160.000 13.446,000/2,714.000 tD-tereet .. a,410,00<i 1.-597.000 *S7 000 Otber receipts .. 1,017,000 1,136,000 • 119,00 Total ..-I8,oS?-000 16,079,000 2,5§5,060 •Decrease.

Although the figures in regard to income tax, included under the heeding •other taxation," will not be available until the end of the financial year, it i« clear from the results attained in respect of other major headings of taxation that there ie every prospect of the total revenue, as estimated in the Budget, being attained. The proportion of receipts to date, compared with that of the previous financial year, is being well maintained. Expenditure in Hand. In regard to expenditure, Mr. Savage stated tliat the total for nine months of £21,082,000 was £2,215.000 les* than the relative proportion or the estimates, as follows:— ExpenPermanent Proportion, ditnrr Excess Apprne.— £ £ £ Debt service 6.944,000 6.092,000 48 000 Highways . 1,834,000 1.864,000 l>o.ooo , Exchange . 1.091,000 1,289,000 198,000 Other services .. . 463,000 525,000 60.000 Total permanent . 10,384,000 10,760,000 286,000 Annual Apprns.— £ £ . £ Social services . 7,863,000 6,545,000 1,318,000* Other services . 5,050,000 3.867,000 1,183,000* Tl. annual 12,913,000 10,412,000 2,501,000* Total exp. 23.297,000 21,082.000 2,215.000* •Under-expcnditure. This apparently substantial under - expenditure is subject to the qualification that certain payment* from imprest accounts have hot yet been brought to charge, and to the fact that grants and comparatively large items of that nature are in practice heavier toward the end of the financial year than at the beginning. Moreover, increased pensions and salary restorations, which were effective during the latter half of the year, naturally affect the comparisons on a proportional basis. Expectation of a. Surplus. Even after making due allowance for these factors, however, it Lβ evident that the total expenditure is being kept well within the appropriations. Over-expen-diture in reepect of permanent appropriations is the result of certain payments having been made in advance. It is not anticipated that there will be any over-expenditure by the end of the year.

"Although we have now entered upon the last quarter of the financial year," Mr. Savage concluded, "it-is too early to form any definite conclusions regarding the outcome of the year's operations, particularly when such an important item of revenue as income tax is etill in abeyance. Present indications are, however, entirely satiefactory, and, based on previous experience, I have every reason to anticipate that the final figures for the year will disclose a satisfactory position."