SURPLUS OF £40,000

Dominion, Volume 26, Issue 220, 13 June 1933, Page 10

SURPLUS OF £40,000

Past Financial Year NATIONAL ACCOUNTS Receipts Exceed Estimates X SAVINGS FROM ECONOMIES Bank Exchange Payments Revenue and expenditure figures for the financial year ended Marell . 31 last, which are published in# special Gazette issued yesterday, reveal a balanced. Budget '” t *' a surplus ’Of approximately In an accompanying statement the Acting-Prime Minister and Mimstei of Finance, Rt. Hon. J. G. Coates explained that *his »"rP lu s had been made possible partly by, reason % ; revenue buoyancy totalln g £038,0 u and partly by net econoimes totalling £112,000. His statement disclosw that £1,010.000 was l J til ? se(, ll t '-ier chase exchange from the banks, unde, the provisions of r the Ban demnity (Exchange) Act. ’ Mr Coates said that as indicatedl in .preliminary Press statement issued X X »<*■»•'« XS the vear closed with a oaianceu get and a small surplus. l>s Jow been defined as approximately £4O 000, and in view of the serious position which had to be faced when the year-opened, would, it Was felt, afford “’cneriil s&tisffl-CtiOD. _ .1 “ The Budget provided for reducing the huge prospective deficit to not more than £1,010,000, but aS the.year p opressed it became evident that the ie :u!t for the year would be much nearer a balance than this. The final results disclosed a surplus of which had been made possible partly 1 bv reason of revenue buoyancy totalling £038,000 and partly by way of net economies totalling £112,000. It would be seen that the rev ® l ’"‘' for the past year compared with Bud get estimates disclosed an excess of receipts over Budget estimate as fol-

-‘The major excess.of receipts over the Budget estimate,” added Mr. Coates, “has been contributed by taxation to the extent of £805,200, of. which the principal increases arose out of Customs duties, £431,400; income tax, £106.800; stamp and death duties, £99,-00, and motor vehicles taxation, £70,600. “For the increase of £91,700 under ‘interest,’ the improved position of the net railway revenue for tlie past year has been responsible; a surplus of £llO,506 having been received from this source, against which there has been minor declines in other sources of revenue under this heading. Under other receipts’ a surplus of some £41,600 arises for the most part by reason of registration and other similar fees having been maintained in excess of what might rea- . sonably have been expected under curirent economic conditions.” The expenditure for the year was illustrated as follows: —

22,040,952 22.528,379 112.573 ♦Over appropriation. - Substantial Economies. “It will be evident,” Mr. Coates continued, “that substantial economies have been effected under all main headings of expenditure with the exception of ‘other services’ under permanent appropriations, where an excess of £370,500 arises by reason of the additional exchange on London • purchased under the Banks Indemnify (Exchange) Act during the final quarter of the financial year. “Under the other itsms the major waving arises under debt services, principally by reason of interest economies arising out of the fact that it was found possible to finance the year's operation with considerably less recourse to Treasury bill finance than was anticipated. Under other items, it will-be seen that, by reason of the operation of progressive economies and a continuous review of all departmental expenditure, substantial savings have been effected in every possible direction. Issue of Treasury Bills. "Treasury bills issued tinder the Public Revenues Act for general purposes totalled for the year £22,974,000, as against which £24,419.400 were redeemed : redemptions showing an excess of £1,445,000 over issue, the excess being due to the fact that bills totalling some £3,000,000 were outstanding at the close of the previous financial year. “More than usual interest will also centre upon the transactions arising out of the issue of Treasury bills under the Banks Indemnity (Exchange) Act of 1932, in respect to Which £2,858.000 were issued during tile year, against which redemptions totalled £478,000, leaving £2,380.000 outstanding at. the close of the year. Of this £1,910,000 has been utilised to purchase exchange from the banks under the provisions of the Banks Indemnity (Exchange) Act; the difference of £470.000 between ihe bills outstanding and the amount purchased represents the exchange cost which has been debited against revenue under Permanent Appropriations—other expenditure. “Of this sum £1,910,000 as above paid to the banks for the purelutse of exchange the major portion was retained in the New Zealand Government Indemnity Exchange Account in London, but aS indicated in the account £380,000 was transferred to the public account before March 31, and formed part of the floating cash and investment balances of the Consolidated Fund.

lows. Excess of Receipts over Budget Budget Estimate, Receipts, ■ Estl-1032-33. 1032-33. mate.'t'ax'ition .. 14.800,000 15,603.206 805,206 In teiest .... 2,550,000 2,641,710 01,710 Other receipts 4,280,000 4,321,60a 41,6 .> 21,630,000 22,568,521 938.521 Excess of Receipts.

Appropriation, 1932-33. £ Expenditure, 1932-33. P £ . Under Approrlation. £ Permanent propriationsDebt services .. : 10,020,537 9.890,015 130,222 Other services 1,932,690 2,303,193 ♦370,197 Annual Appropriations — Legislative and Prime Minister’s Dept, and Finance .... 397,332 374,590 .22,742 General admlnis 060.609 53,6(7 tration ..... 1.014,228 Law and order 008.140 (183,225 14,915 Defence ...... 631,110 509,921 61,189 Maintenance o£ /' 52,371 21,821 buildings, etc. 74,102 Development: of primary and secondary industries .... 083,.101 851,517 111,984 Social services, 0,842,938 66,580 etc 6.900,518