Govt spending falls by 3.9 p.c.

Press, 18 February 1977, Page 3

Govt spending falls by 3.9 p.c.

■ PA Wellington : Net Government expenditure in the first nine monhs pt this financial year dropped Iby 3.9 per cent, compared with an increase of 37.7 per (cent in the corresponding period of the previous year. This was disclosed by the Prime Minister (Mr Muidoon) yesterday when he released the public accounts foi the first nine months of the 1976-77 financial year. He said that net Government expenditure was $3346.3 million, and added that this year’s estimates had ; forecast an increase of 5.4 per cent in spending during the full year to March 31. “The over-all position of the public accounts for the

mine months to December 31 ■ showed a cash overdraft of ■|sB3.4 million compared with ;|an overdraft of $182.9 million I in the same period of the preI vious year.” Tables showed that the de- • ficit before borrowing was $833.1 million compared with ' $1263.1 million at the end of • the same period in the previ- ■ ous year. Government administration ; expenditure was down from $358.6 million to $317.5 mil- ■ lion. ; In the Consolidated RevI enue Account receipts inI creased by $430.6 million. : The largest increase was ; $247.3 million for income tax, . mainly because of salary and ■'wage increases since Dece’mHber, 1975, Mr Muldoon said.

Customs duty increased by $25.5 million, which reflected the increased costs of imports. : He said that a rise of $20.2 ‘million in motor spirits taxation was explained by the : fact that a higher rate of tax ihad applied for only part of ; the previous year — from : May 22. Higher interest rates (from April 1, 1976, on capital advances increased interest receipts by $Bl.l million. Expenditure in the Con-

solidated Revenue Account I had increased by $274.8 million. The main increases occurred in debt services ($88.4 million), advances for superannuation refunds ($29.3 million), health ($58.8 million). I and social services ($160.3 million). “These increases have been i offset by reductions in ad-j ministration, mainly stabilis-l ation, which was $104.7 mil-| lion less, development of in-: dustry ($8 million less) and; education ($22 million less). | Mr Muldoon said that in (the works and trading account, receipts increased j by $161.4 million as a result ( of higher departmental re-1 ceipts ($140.8 million), in-1 creased contributions from• national development loans 1 ($72.5 million) and a de-j creased contribution from the; Consolidated Revenue Ac-1 • ■ count ($52.1 million). | The expenditure increase! ■ of $166.8 million was for edu-l ication buildings ($90.1 mil-; ! lion), previously met from the! i consolidated revenue ac-1

I count), electric supply ($13.8 million), railways ($14.9 million), land use ($7 million), and additional interest on capital liability ($25.2 million). Receipts into the loan re- ! demption account increased (by $236.1 million and securijtioes redeemed increased by | $466.1 million. In the national develop|ment loans account receipts rose by $44.8 million. On the (payments side, funds trans- | ferred to the works and ! trading account increased by J $72.5 million but advances ((were $164.2 million less than jin the corresponding period I of the previous year. j The table of accounts dis- ! closed that the Government (took in $1475.9 million in income tax, $227.6 million in sales tax, and $34 million in (beer duty. The latter figure (was down 1.7 per cent on i the corresponding period of I the previous year. I Estate duties, racing and (stamp duties, land tax, property speculation tax, fihn-

s'hire tax, mileage tax. foreign -.fishing tax and travel tax , I brought in $90.9 million, a I j rise of 15.1 per cent. -; Ihe Government showed a (gain on foreign currency, .(transactions of $10.9 million, jlln the corresponding period .(of the previous year there -I had been no gain or loss. Currency realignments also J resulted in a return of reve-; '(nue, but at $17.5 million this ’ was down 3.9 per cent of the '(figure of $21.4 million for the jjfirst nine months of the 1975.176 financial year. 5 ' - ' i j! N.Z. bees for Iran i A consignment of 120 -’queen bees left Auckland tj yesterday for Teheran -■aboard a British Airways II jumbo jet. It was the first of vseven consignments of J: queen bees, totalling 840. i! ordered from a Whakatane f; apiarist by 7 the Asian Bee Honey Company in Iran. Thel I j bees were packed 10 to a 1 -j container for the 23-hour -1 flight.—PA