PUBLIC ACCOUNTS

Evening Post, Volume CXXX, Issue 30, 3 August 1940, Page 12

PUBLIC ACCOUNTS

FIRST QUARTER

REVENUE MUCH HIGHER

EXPENDITURE DROPS

Details of the finances of the Consolidated Fund for the first quarter of the current financial year, as revealed, today by the Minister of Finance (the Hon. W. Nash) show that the revenue for the three months totalled £8,385,058, an increase of £998,174 over the corresponding period last year, and that expenditure was £7,282,306, which is £257,578 less than for the corresponding period last year. The net result is a surplus for the quarter of £1,103,000.

The Minister explained that these results-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 Wai' Expenses Account, whereas during the first quarter of last financial year expenditure totalling £321,701. was met out of the Consolidated Fund. A comparative statement of the revenue is as follows: — April June Percentage 1 to 30. three months 1939-40. 1940-41. to total for year. £000. £000.1939-40.1940-41. Taxation —• . „ Customs ...2,562 2,827 26 38 Beer duty .. 256 374 19 27 Sales tax .. 958 943 27 31 . Highways.... 1,075 ■ 827 36 32 Stamp duties 830 . 875 24 53 Land tax .. 29 25 3 3 Income tax .696 1,538 7 11 ' Miscel- ■ ■ ;.,„• laneous .45 44 20 19 6,451 7,453 20 24 Interest 401 314 14 11 Other receipts 535 618 24 18 revenue 7,387 8,385 19 23 "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 year, 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 due to the imposition of, an additional 4d per gallon duty on motor spirits imposed in September | last, while the other variations are, on the whole, normal." • EXPENDITURE. A comparative summary of the net expenditure to date is as follows: — Permanent Appropriations— Percentage April Ito June 30, six months to 1939-40.' 1940-41. total for year. £'000 £'000 1939-40.1940-41 Debt services . 1712 1978 16 19 Highways .. 813 736 27 29 Exchanges . 417 219 24 15 Other services 804 30 IS. 3746 3000 21 20 Annual Appropriations— Social services 1968 2269 21 19 j Other votes .. 1826 2013 18 21 ■ Tl£rPe^: 7^ 7282 20 / 20 "It will be seen from these returns," said Mr. Nash, "that oh a comparative basis, the results to date approximate very closely to the position last year, which, it will be recalled, closed with a satisfactory surplus. The percentage variation in regard to the item 'exchange' is due to 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.

"The compWative reduction in regard to 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 regard to 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," Mr. Nash added, "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 transactions of the War Expenses Account and the Social Security Fund, will be published as a supplement to this week's Gazette.