STATE FINANCES

Dominion, Volume 33, Issue 266, 5 August 1940, Page 6

STATE FINANCES

Details Of Revenue And Expenditure

FIGURES FOR QUARTER

Net Surplus Of X1,J03,000

Shown

The. revenue and expenditure figures of the Consolidated Fund for the first quarter of the current financial year were announced on Saturday ’by the Minister of Finance, Mr. Nash. The revenue for the quarter totalled £8,385,0t>8, an increase of £998,174 compared with the corresponding period of last financial year, while the expenditure amounting to £7,282,306 was £257 578 less than for the same period of 1939.

These results, said the Minister, were, of course, subject to the qualification that the whole of the expenditure on defence was now, in terms of the War Expenses Act, 1939, paid out of a separate account, the War Expenses Account, whereas during the first quarter of last financial vear expenditure totalling £321,701 was met out of the Consolidated Fund. A comparative statement of the reve-

"On a percentage basis,” said Mr. Nash "it will be seen from the foregoing results that for the first quarter of this financial year 24 per cent, of the estimated revenue from taxation for the whole year has now been received, compared with 20 per cent, for the corresponding period of last, financial vear, while a similar margin, namely, 23 per cent, as against 19 per cent., applies in respect of the total revenue. The substantial variation in Customs duty is the result of the imposition of an additional 4d. a gallon duty on motor spirits imposed in September last, while the other variations are, on the whole, normal. Details of Expenditure. A comparative summary of the net expenditure to data’is as follows:—

“It will be seen from these returns,” said Mr. Nash, “that on a comparative basis, the results to date approximatevery closely to the position last year, which, it will be recalled, closed with a satisfactory surplus.” The percent age variation in regard to the item "exchange” is caused by the fact that substantial remittances were made to the High Commissioner for New Zealand in the early part of last year, in anticipation of requirements, whereas similar advance remittances have not been made this- year. Comparative Reduction. “The comparative reduction in the item ‘other services’ is due almost entirely to the fact that for the first quarter of last financial year the sum of £750,000 was transferred from permanent appropriations to the Social Security Fund, whereas this year a similar transfer but of £400,000 was charged against annual appropriations ('Social Services.’). These adjustments also affect the comparison in the last mentioned heading as between the two quarters.

"The net position to date is thus a surplus in Consolidated Fund revenue over expenditure of £1,103,000, but it. is too early -of course to forecast the results for the whole year. The present indications, however, are entirely satisfactory and indicate that the Budget estimates are being closely adhered to. The usual details, which will include, also the transaction of the War Expenses Account and the Social Security Fund, will be published as a supplement to this week’s Gazette.”

nue is as follows: — Percent. 3mthfi. to total for year, 1939- 1940Anri) 1 to June 30. 1939-40. 1940-41. Taxation— Customs £ 2,502,000 £ 2.827,000 40. 20 •11. 38 Beer dutv . 250.000 374,000 19 ■Salos tax - 958,0M 943,000 27 31 Highways • Stamp duties 1,075,000 830.000 827,000 875,000 30 2-1 32 53 Land tax ■ 29,IKK) 25,000 3 3 Income tax 606,000 1,538, (MX) i n MiKcellaneons 45,000 •14,000 20 19 £• 0,451,000 £7,453,000 20 21 Interest 401.000 314,000 14 11 Other receipts 535,000 018,000 24 18 Total reve£8,385,000 19 nue .. £ 7,387,000

Permanent Appropriations. Percent. April 1 to June 30. Gmths. to total for year. 1939-40. 1940-41. 19391940- £ £ 40. 11. B e t> t setvices ... 1,712.000 1,978,000 16 J 9 Hlitliwavs . 813,000 780,000 27 29 Exchange . 417,(XX) 219,000 24 15 O t h e r services ... 804,000 67,000 30 18 £3,740,000 £ 3,000,000 21 20 Annual .Appropriations. Social services ... 1,968,000 2,269,000 21 19 Other votes 1,82(1,000 2,013,000 .18 21 Total expenditure . £7,3-10,000 £ 7,282,000 20 20