Spending, deficit cut

Press, 9 November 1988, Page 8

Spending, deficit cut

The Minister of Finance, Mr Douglas, released yesterday the Government expenditure and revenue figures for the first half of this financial year. The figures, to September 30, 1988, show total expenditure (excluding major project refinancing) of $12,603 billion, down 1.3 per cent on spending for the same period last year. This was achieved largely through a turnround of almost $BOO million in the miscellaneous investment transactions category which

went from a charge of $249.4M the previous year to a credit of $543.4M. This turnround was not explained in the Minister’s statement, and nor was the $974.2M total for interest, profits and- miscellaneous receipts — up from only 44.1 M for the same period last year. In combination, these two factors account for most of the difference between last year’s midyear deficit before bor-. rowing of $3,787 billion, and this year’s comparative deficit figure of $1.8548. On the revenue side,

total tax receipts were up 9.9 per cent on the same period last year, while total receipts were up 19.2 per cent at $10,748 billion. Mr Douglas said the Budget table 2 balance was on track to achieve Budget night forecasts, but that tax reform and State sector policy changes would continue to impact on expenditure and revenue flows. “The Press” was told recently by Mr Douglas’s office when checking on this point that the target date for this year’s asset sales remained March 31, 1989.