STATE FINANCES

Press, Volume LXXXV, Issue 25739, 26 February 1949, Page 6

STATE FINANCES

FIGURES FOR NINE MONTHS

“ BUDGET POSITION SATISFACTORY ” • P.A.) AUCKLAND. February 25. The position of State finances for the nine months of the financial year are disclosed in the public accounts which will be gazetted this week. “Consequent upon the alteration ot the exchange rate.” said the Minister of Finance (Mr W. Nash), “adjustments were made in the Budget estimates and as the effect of the new exchange rate is now becoming apparent, the revised Budget figures as shown in the Supplementary Estimates are included as a comparison of revenue and expenditure. “The following is a summary of the figures for the Consolidated Fund for the nine months to December 31, 1948: RECEIPTS Taxation—

received amounted to u ? nd expenditure to £73.6/3.000. being 81 per cent and 86 per cent respectively of the proportionate Budget estimate, that is for nine months, as compared with 89 per cent, and «6 per cent, for last year. . Jt will be noted,” said the Minister, that customs revenue shows a substantial dtcline. In my review of !{? e . s .eP te t mbe r accounts, I indicated that the trend in the anticipated reduction under this revenue heading might be accentuated, and this is borne out. tut in the December figures it appears unlikely that the Budget estimate or £22.000.000 for customs revenue for the full year will be realised. The bulk of collections S f n« l in v n l e tax do not tell due unti! February and March. Land tax collections are small. as the due date for the payment of land tax by individuals was fixed in January instead of the normal date in October or November. Expenditure by the armed services is less than anticipated. due partly to accounts having »? ot yet come to charge, and partly to inability to carry out some of the work planned for the year. • “Expenditure generally is well within the Estimates., but outstanding imprest advances and the usual heavier expenditure in the March quarter will yet have to be taken into account in the final figures for the year. SOCIAL SECURITY FUND Receipts

The smaller collections of the Social Security charge of £17,195.000 representing 37.3 per cent of the actual Budget estimate, as compared with the 71.6 per cent, of the preceding year, are much lower proportionately than last year. but. it is anticipated that the Budget estimate of £30.000.000 will be realised. The payments side shows a normal position for this time of the year, as with the Consolidated Fund uncleared, imprests have vet to be brought into account. The major expenditure out of the War Expenses Account continues to be in respect of rehabilitation, the gross figure to date being £3.448.300 against the estimate for the full year of £4.900.000. ‘‘The final accounts for the costs of J Force in Japan have not yet been 1 received. Although it is a little early ; to forecast what the position may be at the end of March, the budgetary position -s satisfactory.”

Revised Customs <«. budget for 12 months £000 22.000 Actual figures. £000 14.186 Beer duty 4.375 3.286 Sales tax 14.500 10,127 Film hire 130 68 Highways 3.125 2.797 Stamp duty 9,200 7.300 Land tax 900 431 Income tax 41.300 19.783 Miscellaneous 65 37 Totals 95,595 58,015 Other Receipts— Interest 5,123 3,152 Profits from trading undertakings 2,177 2.197 Departmental receipts 10,972 6.001 Totals 113.867 69,366 Expenditure— Permanent appropriations 25,260 18,845 Annual appropriations Social security 15.000 11.250 Other social services 22,256 16.005 Stabilisation 11.468 ■ 6.841 Other votes 28.570 16.851 Totals 88.530 54.828 Grand totals 113.790 73,673

Budget for 12 months Actual £000 £000 Social security charge 30,000 17,195 Miscellaneous receipts 65 49 Transfer from Consolidated Fund 15,500 11,250 Totals 45,065 28,494 EXPENDITURE Monetary benefits 20,271 13,276 Family benefits 13.843 9,448 Medical benefits 7,562 5.825 Administration expenses and emergency benefits 1,029 685 Totals 42,705 29,234