STATE FINANCES

Dominion, Volume 25, Issue 266, 5 August 1932, Page 10

STATE FINANCES

An Improved Outlook SPENDING CURTAILED Survey of June Quarter effect of economies The position of the national accounts for the first three months of the current financial year is considered satisfactory, accord.ng to a statement by the Prime Minister, Rt. Hon G. W. Forbes, In discussing the figures which were published in a supplementary Gazette yesterday. He said that the revenue of the Consolidated Fund for the period totalled £3,504,907, as compared with £3,814, 724. for the June quarter of 1931-32, a decrease of £249,817. “Receipts from taxation as a whole show a net increase, of £7660, which Lav be regarded as satisfactory having regard to the fact that a heavy falling off is anticipated in the preliminary Budget estimates,” Mr. Forbes said. “The indirect taxation, Customs and beer duty, shows a comparative increase for the three months of approximately £200,000, which constitutes a promising start for the year. Motor vehicles, duties and licenses, however, show a decline of £132,000, and stamp Ind death duties a falling off of £73,000. .“Death duties normally fluctuate from month to month, but apart from this some falling off in these items is expected. Land and Income tax payments are not due until later in the year, so the present figures give no indication of the probable outcome for these items. Revenue from Interest. “The revenues from Interest as a whole are £230,000 less than were received in the corresponding period of last year, but this is to some extent, due to accounting fluctuations, which will adjust themselves during the year. Interest on the Public Debt Redemption Fund reflects the reductions and concessions in interest arising out of present economic conditions, while the item for interest on public moneys shows a reduction due to a fail in the volume of investments and the low rates of interest ruling in London. These reductions were generally anticipated. „ J “ ‘Other receipts’ show a small decrease of £27,000, but the items are for the most part up to expectations and do not call for comment. “Turning to Mie expenditure side of the accounts, the following position is disclosed: — Permanent ap- 1931-32. 1932-33. Decrease. D P Jbt P urges’ 2.984,107 2,1®7,948 78®150 Other charges 1,105,331 410,043 694,688 Sub-total .. 4,089,438 2?608,59; 1,480,847 Vr"at a ions ,p ™; 1,400,024 2,000,370 *545,746 Total .... 5,550,062 4.614,061 935.101 ♦lncrease. “The decrease of £786,000 under debt charges is accounted for principally by the suspension of payments of the funded debt, in accordance with an extension of the Hoover moratorium to cover this debt. Accounting Procedure. "The decrease of £695,000 under permanent appropriations-other services, is substantially due to the change of accounting procedure arising out of the Finance Act, 1932, which provided that the expenditure on the major portion of these services shall, in future, be provided by annual appropriations. This took effect from April 1, but expenditure charged as above to May 10 must remain as indicated until the current year’s appropriations are passed. “For comparative purposes, therefore, this expenditure must be considered in conjunction with that under the annual appropriations, when a net comparative decrease of £149,000 is disclosed. It may be mentioned, however, that this year’s expenditure includes £300,000 for exchange on London remittances, which was not a factor during the first three months of last year. It will thus be apparent that the expenditure generally is showing the result of the economies effected.

An Improved Outlook SPENDING CURTAILED Survey of June Quarter effect of economies The position of the national accounts for the first three months of the current financial year is considered satisfactory, accord.ng to a statement by the Prime Minister, Rt. Hon G. W. Forbes, In discussing the figures which were published in a supplementary Gazette yesterday. He said that the revenue of the Consolidated Fund for the period totalled £3,504,907, as compared with £3,814, 724. for the June quarter of 1931-32, a decrease of £249,817.

“To sum up, the position disclosed can be regarded as satisfactory in tha*> the revenue generaly is quite up to expectations, while the expenditure has been kept under close control, and reflects the economies that have been effected.”