HEALTHY FINANCE

Evening Star, Issue 23094, 21 October 1938, Page 3

HEALTHY FINANCE

THE PUBLIC ACCOUNTS ANALYSED STATEMENT BY MINISTER [Pen United Peess Association.] WELLINGTON, Oct. 20. , Satisfaction at the position disclosed in the half-yearly statement of the public accounts for the period ended September 30 and confidence that Urn year would close with the finances in a healthy state were expressed by the Minister o r Finance, Mr Nash, to-day in releasing for publication a summary of the accounts. He drew attention also to the fact that the Budget estimates were being very closely adhered to. and indicated that the detailed accounts would, as usual, be published in the Gazette immediately after the audit. A summary of the revenue position from April 1 to September 30, together with the corresponding figures for 1937, is as follows:

The Percentages The percentages for the half year to the total for the year are as follows for 1938-9 compared with the figures for 1937-8: 1938-39 1937-38

“ These results show,” Mr Nash explained, “ that to September 30 last ihe total consolidated ordinary revenue amounted to £13,400,000 compared with £13,564,000 for the same period of last financial year. It will be recalled that the Budget estimate allowed for a total reduction in revenue for the year of £214,000. The most accurate estimate of the present position is obtainable by comparing the percentage results. From these, it will be seen that the receipts to date compared with last year’s amount to 37 per cent, in each case, from which it is obvious that the Budget estimates are being very closely adhered to. “ The individual items constituting the total taxation are, on the whole, so identical as to call for little explanation,” the Minister said. “It is expected that the reduction in the highways revenue will be made up during the year. The item ‘other taxation’ constitutes principally land and income tax, by far the greater portion of which is not due until later in the financial year. To date the income tax receipts total £ 1,272,000 compared with £799,000 for the same period last year, but allowing for adjustments in respect of payments in etc., ther.;? to be no reason to depart frdbff Budget estimate for the year of £9.500,000."

The following are the main headings of expenditure from April 1 to September 30, 1938. compared with the same period of last financial year:—

EXPENDITURE Permanent appropriations—--1938. 1937.

The Percentages The percentages for the half-year to the total for the year 1938-39 compare with the figures for 1937-38 as follows: Permanent appropriations—

“ The expenditure to date is thus £894,000 in excess of that incurred during the same period of last financial year,’ said Mr Nash. “It v/ill be noted that under the heading ‘Permanent Appropriations ’ the major variation is in respect of debt services where a comparative reduction of £270,000 Is indicated. The Budget estimate allowed for an increase of £103,000 for the whole year. This variation is due principally to the fact that recoupments from other accounts during the last half-year were substantially in excess both of the relative proportion of the estimates and of the previous half-yearly results. The balance of the variation arises from the fact that the repayment of public debt moneys are utilised for redemption purposes only as and when required. During the first six months of the current financial year it has nob been found necessary to utilise any portion of such funds, which will accordingly be expended during the second half of the year. Thus, while there is an apparent saving to date in respect of ‘Debt Charges,’ it is considered that by , the end ot the financial year the Budget estimate will be reached. , “ Under the heading of ‘Annual Appropriations ’ expenditure on social services is adhering very closely to the Budget estimates,” Mr Nash said, “ while in respect of ‘ Other Votes.’ which include general administration, the maintenance of law and order, etc., the percentage increase is due very largely to accounting fluctuations which will tend to be absorbed as the year progresses. “Reviewing the position as a whole,” Mr Nash concluded, “ and after making the necessary allowances for various factors which affect direct comparisons, it is evident that both the revenue and expenditure are adhering very closely to the Budget estimates; and based on the results to date I feel quite confident that the year will close with the finances maintained in a healthv state "

REVENUE 1938 £ Customs .. .. 5,100,000 Beer duty .. .. 477,000 Sales tax .. .. 1.717,000 Highways .. .. 1,615,000 Stamp and death duties .. .. 1,515,000 Other taxation .. 1,462,000 1937 £ 5.460.000 431.000 1.769.000 1.504.000 1.605.000 982.000 Taxation totals £11,886,000 £11,15)1,000 Interest .. . Other receipts . ,. 589,000 925,000 777,000 1,036,000 Grand total £13,400,000 £13,564,000

Customs! 51 51 Beer duty 48 44 Sales Tax 51 51 Highways 50 53 Stamp and death duties 46 50 Other 13 9 Taxation total 37 37 Interest 30 36 Other receipts .. .. 43 46 Grand totals 37 38

Debt services Highways .. . Exchange .. . Other services . £ . 3,545,000 . 1,511,000 774,000 90,000 £ 3.815.000 1.373.000 837.000 257.000 Totals .. .. 5,920,000 Annual appropriations— Social services .. 6,304,000 Other votes .. 3,678,000 6,262.000 5.598.000 3.128.000 Totals .. . . 9,982,000 8,726,000 Grand totals . . 15,902,000 15,008,000

Debt services 1938-39.1937-38. .. 37 40 Highways .. .. ... 48 48 Exchange .. .. 46 Other services .., 17 , 17 Totals .. .. .. 39 40 Annual appropriationsSocial services .; .. 49 47 Other votes .. .. 47 40 Totals .. .. .. 48 44 ffiii . i■' i Grand totals 1 . .. 44 43