Tax take tops $3.2B; expenditure over $5B

Press, 29 October 1981, Page 1

Tax take tops $3.2B; expenditure over $5B

PA Wellington The Government's tax take in the last six months rose by more than 22 per cent on the same period in 1980, according to the Public Accounts released yesterday. Total taxation receipts to September from the start of the financial year topped $3.2 billion, 22.1 per cept up on the $2.6 billion collected in the same period of 1980.

The Public Accounts, released by the Prime Minister (Mr Muldoon), showed a total internal deficit of just under $863 million for the period, compared with $595 million in 1980.

Both overseas borrowing and repayment of loans rose sharply. Just under $1 billion was borrowed overseas during the first half of the financial year, $997.4 million, leaving a total of just under $570 million after repayments of

almost $428 million

Borrowing for the same period last year totalled $195 million from loans of $419 million and repayments of $224 million. The deficit before borrowing was up just over 10 per cent — $1.3 billion compared with just under $1.2 billion. Mr Muldoon said spending and revenue were “generally in line with budgeted figures.” Total net expenditure was 17.6 per cent up at almost $5.78 billion.

The accounts were “fully consistent with the Government's policy to ensure that in the short term Government expenditures and revenues complemented the economic development strategy." He emphasised that the “fiscal position to be adopted over the medium term would need careful assessment to ensure that the required resources were made available to support and to sustain the economic development strategy.”

But the accounts were attacked by the Leader of the

Opposition (Mr Rowling) w-ho said they made it clear that inflation would pass 20 per cent next year. Mr Rowling said he was shocked at the extent of overseas borrowing. Even after repayments, the net borrowing was three times higher than in the same period in 1980. On tax, Mr Rowling said the 22 per cent increase was well over the budgeted increased take of 17 per cent. Mr Rowling said the true extent of Government costs were still hidden. The Public Accounts did not take the supplementary minimum prices being paid to farmers into account, nor did they cover the Public Service wage increase or Government commitments to increased defence spending.

It was clear now that the real state of the economy was far worse. than was revealed in Government statements or budgets. A Labour government would open the books for a full public accountipg immediately on taking office, he said.