LAST YEAR'S SURPLUS

Evening Post, Volume CXVI, Issue 114, 10 November 1933, Page 12

LAST YEAR'S SURPLUS

OVER £40,000

TAXATION YIELDS

The last financial year ended with a surplus of £4.0,142. In his Budget 'speech, Mr. Coates expressed the view that having regard to the position when the year opened, tho result was very satisfactory. "Members will recollect," said the Minister, "that when the year opened the country was confronted with a prospective budgetary shortage estimated 'at £8,300,000. The remedial measures adopted, mainly the use of reserves and further economies in expenditure, together with an improved outlook for the revenue by the time the Budget was i brought down, were calculated to reduce the deficit to within £1,000,000. I For the first time for several years the ; revenue exceeded expectations by a substantial amount, £938,000, while, as a result of rigorous control of expenditure, a net saving of .£112,000 was effected, notwithstanding that an unexpected item of £470,000, for purchase of surplus exchange, was' included in tho accounts. Tho net -result! was a small surplus of £40,000. Having regard to the position1 when the year opened, it will, I think, be agreed that this result is very satisfactory indeed. "The total revenue received during tho year, amounted to £22,568,521, comprising taxation receipts, £15,605,206; interest, £2,641,710; and other departmental receipts, £1,821,605; whilst £2,500,000 was drawn from. reserves; the Bank of New Zealand and the National Bank of New Zealand, Ltd., assisting by liquidating reserves invested in discharged soldiers settlement mortgages by advancing against hypothecation of the securities. "The total revenue from taxation excoedea the Budget estimate by £800,000, the principal items in excess being Customs duties, £431,000; income tax,.£156,000; stamp and death duties, £99,000; and motor vehicles duties, etc., £70,000. In fact, with two minor [exceptions, every item of taxation exceeded the estimate, and the aggregate amount received was greater than for 1931-32, apart from the yield from the additional taxation imposed during the concluding months primarily for the benefit of this year's Budget. This appears to indicate fairly conclusively that in general w© have at last come to tho end of the constant heavy shrinkages in revenue that have been such a disturbing factor in budgeting since tho depression descended upon us. "Tinder, interest receipts the only important variation arises out of the Improved position of the net railway revenue which exceeded tho estimate by £110,000. This is concrete evidence of an improving tendency in the finances of this important branch of the ' Dominion 's transport services. Little variation is evident in respect to other departmental receipts with the excep; tion of registration and other fees which yielded some £37,000 in excess of what might reasonably have been expected under current economic conditions. ; THE EXPENDITURE SIDE. "The net expenditure for tho year totalled £22,528,379, against an estimate of £22,640,952, a net saving of £112,573. As already indicated, however, the expenditure'included £470,000 for purchase of surplus exchange, which i was not allowed for when the Estimates were prepared. Thus the savings in other items totalled £582,573. Having regard to the fact that the Estimates were carefully pruned and gave effect to most of the recommendations of the National Expenditure Commission, the saving of this additional amount was no mean achievement. It is the result of the wholehearted co-operation of all Ministers and their Departments to reduce expenditure to an absolute minimum consistent with the maintenance of efficiency in their respective organisations." ' Mr. Coates summarised the year's operations as follows: — EXPENDITURE. ■£ ' * Permanent Approprlatloas-r . . Debt services 9,890,01 a Other services 2,303,193 Annual Appropriations— Social services S'iKJo Other votes 3,537,958 „ REVENUE. Taxation 15,605,206 Interest ' 2,641,71(1 Other receipts . 1,821,005 From reserves 2,500,000 Total revenue " ■ 22,568,521 Surplus' .......... S 10,1421 publkFdebt