Minister Reviews Public Accounts For Six Months

Press, Volume XCII, Issue 27824, 24 November 1955, Page 9

Minister Reviews Public Accounts For Six Months

(New Zealand Press Association)

WELLINGTON. November 23. At £68.158.000 for the six months to September 30. Consolidated Fund expenditure was £5.319.000 more than in the same period last year, said the Minister of Finance (Mr J. T. Watts' today in reviewing the Public Accounts. Social Security Fund expenditure. at £31.086.000. was £2,753.000 more. Against this increase in expenditure was an increase of £2,550.000 in the Consolidated Fund revenue and of £1.349,000 in the Social Security Fund revenue. “The latter increase is a reflection of the normal growth in population and in the national income, but the Consolidated Fund increase is to some extent abnormal and comes from the high volume of imports.” he said. “We are importing a greater value of goods than we can afford from our current earnings from exports, and as a consequence our overseas banking assets are being reduced. Early this year the Government took action through the central bank to reduce the level of bank advances, which have been the principal cause of the increased money supply which has given effect to the demand for imported goods. “It has taken some time for this restraint to make itself felt, but it appears to be working now without hardship, and its progress will continue to be watched closely. I would therefore expect that by the end of the year receipts from this source will decline a little, reflecting the lower level of imports which is necessary to the maintenance of reasonable overseas reserves.

“The increased rate of expenditure follows the Budget estimates,” he added. “In the Consolidated Fund it largely arises from last year’s wage increases and the rising cost of education through increasing school rolls. In the Social Security Fund the main increase for the first half of the year represents the pay-out to hospitals at

the increased rate approved last year. The benefit increases provided for m the Budget will be more fully reflected in the figures after September.” The Minister said that the accountl showed an increase in the rate of expenditure on works compared with last year, but only at the level prot vid cd for in the estimates. jNotUing in the figures called for par* ticulat comment, because they wer« running closely to the estimates, said Mr Watts. Receipts and payments for the six months in the Consolidated Fund and the Social Security Fund were summarised as follows: CONSOLIDATED FUND

Receipts 1954-55 £000 1955-56 £003 Customs duties 14,432 12,571 Sales tax 10.228 9.841 Income tax .. 18,154 18,409 Other taxes .. 10.693 10,500 Other receipts 13,515 13.149 Total receipts 67,020 64.470 Expenditure Debt services 10.275 9.438 Stabilisation 6,385 6.643 Defence 8,238 6.875 Social services 23,830 21,770 Other expenditure 19.430 17,063 Total expenditure 68.158 62,839 SOCIAL SECURITY FUND Receipts Social security charge 28,237 26,923 Other receipts 94 59 Total receipt* 28,331 26,982 Expenditure Monetary benefits 22,578 22.029 Medical and hospital benefits 7,855 5.713 Other expendtiure .. 653 593 Total expenditure 31,086 28,333