PUBLIC ACCOUNTS

Press, Volume LXXXIII, Issue 25092, 25 January 1947, Page 6

PUBLIC ACCOUNTS

Minister’s Analysis Of Figures “POSITION QUITE SATISFACTORY” (P.A.) WELLINGTON, Jan. 24. The public accounts for .the nine months’ period to December 31, 1946, have now been completed, and will shortly be published in the Gazette in detail. A summary of the accounts given by the Minister of Finance (Mr W. Nash) to-night show that receipts are buoyant. CONSOLIDATED FUND Receipts Budget Actual estimate, amount.

“Consolidated Fund receipts for the nine months totalled £68,720,000 and expenditure £66,478,000,” said Mr Nash. “The Budget estimates Tor the corresponding period, that is, three-fourths of the estimate for the year, were £75,287,000 and £74,598,0)0 respec-

“After allowance is made for the important item of income tax, most of which is normally not paid until February, it will be seen that the situation is satisfactory. Receipts from all major revenue items were a little more than the proportionate estimate, and in the case of income tax the considerable amount paid to date indicates that the public is taking advantage of the facilities now available to ‘pay as you go,’ under which interest is credited to the taxpayer on instalments paid in advance. “On the other side of the account, expenditure is well within the estimate; but allowance should be made for the usual lag in the completion of final accounting under most of the annual appropriations. The level of expenditure for the nine months is normal, however, as is shown by previous years, and on the basis of the figures so far available it is anticipated that there will not be any great variation between the estimated and actual expenditure in the Consolidated Fund when the final accounts for the financial year are completed.” Social Security Fund Receipts

penditure 26,841,000 22,018,000 “Items within the Social Security Fund,” said Mr Nash, “have altered materially since the previous year, mainly owing to the payment of increased family benefits, variation of social security charges, and an increase (estimated at £11,000,000 for the full year, making £18,000,000 in all) in the contribution from the Consolidated Fund. The December accounts indicate that the receipts are in agreement with the Budget forecast, any apparent discrepancy between actual and estimated revenue being largely accounted for by incomplete returns during the Christmas holiday period. The expenditure finally recorded-up to the end of 1946 was £22,018,000, and there must also be taken into account £5,120,000, representing imprests outstanding for the nine months period—that is, advances made from the fund through the Post Office with which to pay social security benefits as they fall due. This latter figure comprises disbursements not yet finally charged against the fund, together with cash balances in the hands of imprestees as at December 31. Thus expenditure and . advances totalled £27,138,000, which exceeded the proportionate estimate, but is less than the receipt paid into the fund for the period. Additional revenue can be anticipated in the March quarter, and consequently the Social Security Fund finances as disclosed by the nine months’ accounts are in a satisfactory position.” War Expenses Account Receipts and expenditure figures only are given as follows: Receipts: National savings 6,208,000 Amounts received from United States Government in reimbursement for war supplies not eligible for reciprocal aid .. .. 3,269,000 Disposal of surplus assets .. 6,537,000 Miscellaneous receipts .. 3,627,000 Rehabilitation .. .. 531000 Reciprocal aid .. .. Total .. 21,882,000 Expenditure: Navy .. .. .. 1,695,000 Army .. .. .. 6,935,000 Air .. .. .. 2,034,000 Rehabilitation .. .. 3,296,000 Gratuities .. .. 1,011,000 Reciprocal aid .. .. 1,258,000 Ancillary .. .. 3,870,000 Total * .. 20,099,000

‘‘The Budget estimates of War Expenses Account receipts and expenditure were £33,000,000 and £32,000,000 respectively for the full year,” said Mr Nash. “Compared with these figures, the receipts for the nine months period were as shown above. The difference between these amounts and the proportionate estimate is due principally to the unavoidable time factor involved in adjusting transactions with overseas Governments. For instance, a credit of approximately £2,700,000* for the sale of military equipment was received in London early in January, and is therefore not included in the above figures. On the other * hand, final expenditure returns in connexion with pur forces in Japan cannot be maintained right up to date, and it will not be until the March quarter that cash advances for that purpose will become final expenditure. “The War Expenses Account includes as expenditure two items of special interest, one of which is included under the heading ‘ ancillary, and represents further payments

totalling £2,800,000 on account of New Zealand’s contribution to UNRRA. This amount includes payment for some of the material supplied as part of the UNRRA allocation for 1945-46, and up to date our total commitments m goods and cash on this account exceed .£5,000,000. The other item is gratuities, which is additional to the sum of £18,000,000 provided last year for payments to former servicemen. Further payments under both these headings will be made before March 31. “To summarise the position as indicated,’’ said Mr Nash, “the three main accounts show a balance of receipts over payments, which, after making reasonable allowance for normal accounting variations at this stage of the financial year, are generally in accordance with the Budget forecast. Because of substantial reductions in taxation and the considerable alteration of the expenditure programme occasioned by post-war requirements, estimation of the fiscal results for the year was not a simple matter. The present position of the accounts, with the close over-all relation between budgeted and actual results, is quite

Taxation: £ £ Customs 10,875,000 11,123,000 Beer 3,150,000 3,999,000 Sales tax 10,688,000 11,792,000 Film hire 97,000 88,000 Highways Stamp duty 2,031,000 6,000,000 2,147,000 6,868,000 Land tax 697,000 880,000 Income tax 23,063,000 14,501,000 Miscellaneous .. 105,000 83,000 National security 6,727,000 tax 6,000,000 Total taxation .. 62,706,000 57,208,000 Interest received from trading 3,132,000 activities 3,575,000 Profits of trading 1,487,000 undertakings . Departmental re1,131,000 7,875,000 6,893,000 ceipts Grand totals re68,720,000 ceipts 75,287,000 •• •- . Expenditure Permanent appropriations: 16,880,000 Debt services .. 16,802,000 Other special acts 2,238,000 2,116,000 Annual appropriations: 26,052,000 24,430,000 Social services .. Reinstated votes for Navy, Army, 4,190,000 and Air 5,921,000 Stabilisation 10,342,000 9,294,000 Other votes 13,243,000 9,568,000 Total expendi66,478,000 ture • 74,598,000

Budget Actual estimate. amount £ £ Social security charge Miscellaneous 14,925,000 14,395,000 receipts 103,000 52,000 Transfer from Consolid. Fund 13,500,000 13,500,000 Total receipts 28,528,000 27,947,000 Expenditure Monetary benefits 12,384,000 9,828,000 Family benefits Medical benefits 9,465,000 4,355,000 7,088,000* 4,564,000 Administrative expenses and emergency benefits 637,000 538,000 Totals of ex-