A SURPLUS

Evening Post, Volume CXV, Issue 81, 6 April 1933, Page 11

A SURPLUS

AUSTRALIAN FINANCES

LATEST FIGURES

(From "The Post's" Representative.) SYDNEY, March 16. Official figures issued by the Commonwealth. Treasury indicate that the Federal surplus for the fiscal year ending June 30 will not exceed £2,000,000. .The excess of revenue over expenditure for the eight months to the end of February is £2,466,000, against which has to be taken into consideration the balance of commitments and taxation remission under the supplementary financial relief measures which have beea passed since the Budget was tabled. ' Treasury officials will not pass an. opinion regarding the final result of the year's working, but it is eyident that they consider that the surplus will be smaller than was generally anticipated two months ago. One way of obtaining an approximate idea of the, result of the year's working is to compare probable revenue increases over the Budget figures with the increased expenditure involved in tax remissions and from relief measures since the passing of the Budget. The approximate figures are:—

Excess of Customs revenue over the estimates 5,000,000 Excess of income tax over estimates ' 1,000,000 Excess of sales tax over estimates t .... 500,000 Total possible additional receipts 6,500,000 Deduct— Tax remissions authorised for this year 2,100,000 Farm Tolief 2,250,000 Additional provision for unemployment relief .. 100,000 Total 4,450,000These.figures are based on a favourable review, of the situation.

Treasury 'officials are not satisfied that the additional income tax will amount to £1,000,000, nor that tho .sales tax will be substantially above the estimates. Sales returns for tho eight months to tho end of February wero £6,2G9,000 —£2,000,000 less than tho estimate for tho full year. The average collections for the financial year have been about £784,000 a month, or nearly £100,000 abovo the monthly required to reach tho Treasury's estimate, but sales tax collections for February showed a sharp decline as compared with January. On tho general position there is an increased excess of revenue over expenditure of nearly £200,000 as compared with January, but overseas interest commitments in February are below the average. In. February £1,200,000 less had to be paid on that account. The revenue for February showed a. decrease of £210,000 as compared with January. Tho expenditure for February totalled £4,691,000 compared with £6,015,000 in January. In broad terms it may be stated that the surplus to date has vanished as a result of tax remissions and special relief to farmers. At the same time, it must be admit'ed that the finances of the Federal Gtvernmenf are in a very healthy conctition, giving hope- of still further ttuc i remissions.