THE FINANCES

Evening Post, Volume CXII, Issue 106, 31 October 1931, Page 14

THE FINANCES

HALF-YEAR'S FIGURES

KEVENUE DOWN £1,710,501

PROSPECT OF IMPROVEMENT

BUT OUTLOOK OBSCURE

A drop of £ 1,7.10.r.0l in the revenue of the Consolidated Fund is revealed in the public accounts for tho first half of tho financial year. Commenting on the accounts, which \rero published in a Supplementary "Gazette" to-day, the Minister of Finance (the Hon. W. Downie Stewart) stated that the revenue of the Consolidated Fund for the period amounted to £.7,347,379, compared with £9,057,880 for the eorrespondng period last year, a decrease of £1,710,501. However, a considerable shrinkage in revenue was allowed for in the Budget, jyid this decrease does not indicato the financial position for the year. "Receipts from taxation," said tho Minister, "amounted to £5,560,814, of ■which £2,662,634 was derived from Customs duties. The year's estimate for this item was substantially reduced in the Supplementary Budget, and compared with the appropriate proportion of the amended estimate, the receipts are approximately £365,000 behind.

The outlook is still somewhat obscure, but ill view of the rising tendency of our export prices, there is a reasonable prospect that some improvement may take place in the remaining portion of the year. STAMP AND DEATH DUTIES. "The revenue from stamp and death Huties was about £300,000 less than nVas received for the corresponding period of last year, but a substantial falling off was anticipated, and the reecipts. aro only about £189,000 short ef the proportionate part of the estijnate for the year. Tho largest item concerned is death duties, which is incalculable except on tho basis of averages and fluctuates from month to month. Lower values and the difficulty in realising on property is also another factor affecting this revenue. It is yet too early to say what will bo the outcome of this item for the year. "The revenue from motor vehicles' duties and licences slightly exceeded that received during tho six months of 1930, but this revenue is earmarked for loading purposes, and does not assist the Budget. "The receipts from beer duty and film hire tax are in accord with the estimates, while the position in regard to land and income tax will not be known until later in the year. "Interest receipts for the period comparo quite favourably with tho amount received during tho first half of last year, while other receipts show a, slight increase, duo to tho introduction of' additional items. THE EXPENDITURE. "Ou the other side of the account, it will be seen that the not expenditure for the six months amountedto ■£11,463,796, compared with £12,237,467 for the corresponding period of last year. In view of tho changes made, however, tho most useful comparison is with the proportion ©f the estimates for the year. Tho following is a comparison on this basis: — su ■ 55 to £ 2 ■=? °& U 3 *~ Ot~ tyl i-* <£> £Z2 «*f-^ is i- & ": m « 2 .-.■..« ::§ : j jj oi _ fS a © *3

. "The large undcr-proportion shown for other permanent charges is largely nominal, being duo to accounting fluctuations and outstanding payments. It is anticipated that expenditure under permanent appropriations will be in accord with the estimates for the year.

"The position in regard to tho expenditure under Annual Votes is quite satisfactory, although not as good as the figures indicate, as the estimates for the year havo to be reduced in accordance with tho Supplementary Financial Statement.

"In general," added the Minister of Finance, "the expenditure is being kept within the estimates, but the position in regard to the revenue, particularly from Customs and stamp and death duties, is still somewhat uncertain, though the improving economic outlook gives somo grounds for the hope that it may come up to our amended expectations."