PUBLIC ACCOUNTS SHOW SURPLUS OF £1,785,712; BUOYANT REVENUE

Gisborne Herald, Volume LXXV, Issue 22663, 14 June 1948, Page 4

PUBLIC ACCOUNTS SHOW SURPLUS OF £1,785,712; BUOYANT REVENUE

(P_ Ai ) WELLINGTON, June 14. A surplus of £1,785,712 10s 9d in the Public Accounts for the year ended March 31 is announced by the Minister of Finance, Mr. W. Nash.

The Minister said that when the accounts for the nine months were reviewed, it was stated that we could anticipate with confidence that the satisfactory state then indicated would be reflected when the full year’s transactions were completed.

“It is pleasing to note that t now shown in the final figures has

lie all-round position of soundness ; fully justified that forecast.”

In the following summary of the details of the major accounts given by Mr. Nash all figures are in thousands of pounds, the actual figures for the financial year are given first with the Budget estimates following in parentheses: — CONSOLIDATED FUND. RECEIPTS

was in excess of the estimate by approximately £3,000,000 due to the increased volume of imports during the year, while the other major increase was in departmental receipts which were nearly £2,000,000 over the estimates. This was the result mainly of the increase in Works Department’s recoveries arising out of the larger volume of work undertaken for various departments. On the expenditure side, annual appropriations had kept very close to the estimates, being slightly under the budgeted figure. There were, of course, variations within this group of expenditure. The stabilisation vote was approximately £500,000 in excess of the estimate principally due to the costs -involved in the chartering of coastal and intercolonial vessels and the subsidy on sea freights being greater than anticipated. On the other hand expenditure on the three armed services was less than anticipated by £Boo,ooot his resulting from under expenditure on items provided for construction works and for the purchase of technical equipment. Repayment of Loan The increase of nearly £6,000,000 in the permanent appropriations was due to two transactions. First, there was the transfer of £4,000,000 to the loans redemption account mainly to meet the repayment of the loan of £3,765,135 which fell due on May 15 and which had since been repaid. The other item was the transfer of £2,055,000 to the war expenses account to meet the cost of six Loch-class frigates and one survey vessel purchased from Britain. Mr. Nash said this latter expense was part of the defence programme, as announced by the Government, and followed the principle adopted during the war that expenditure of this nature, being non-productive, should be met as far as possible from revenue. inns avoiding a subsequent permanent burden on taxation. A definite commitment had been entered into and, to avoid carrying this substantial liability into the current year’s finances, it was decided to make an immediate payment. No provision had been made Tor this unforeseen contingency on the estimates and the payment was therefore effected under statutory aulhoriay of the War Expenses Act. 1939. This completed the major capital expenditure lor the post-war naval es-

Mr. Nash said estimates given of receipts and expenditure included the supplementary as well as the main estimates. The total appropriation was £109,852,000, The total estimated revenue was £109,860,000. The accounts showed that both revenue and expenditure had exceeded the estimate—revenue bv £7,256,000 and expenditure by £3,478,000. On the revenue side Customs revenue

tablishment, leaving the necessary provision for similar expenditure for the Army and Air Force to be made in the current and future years’ financial programmes.

Summarising the position of the consolidated fund, Mr. Nash said tftfi abnormality of prevailing circumstances continued to affect in some respects accuracy in the forecasting of the public finances and no doubt it would be some time yet before we in common with other countries attained relative stability.

However, the figures clearly indicated that the finances of the country continued to be conducted on sound and prudent lines.

Mr. Nash said the general ouoyant revenue position was reflected ill ttte accounts for the social security fund where the social security charge exceeded the estimate of £23,700.000 by some £2.500,000. The expenditure of 840,443,000 slightly exceeded the estimate of £40,039,000. The balance in the fund now stood at £7,242,000. . J Mr. Nash said moneys required during the year for the war expenses account were found from current revenue, principally reecipts from the disposal of surplus assets and the transfer of the previous year’s consolidated fund surplus. As was anticipated, no borrowing was required. £17,700,000 for War Expenses

Expenditure from the War Expenses Account amounted to £17,700,000, including £2,055,000 for the purchase of the naval frigates mentioned earlier, and also £3,300,000 which was used for the repayment of war debt. The other main items were: Rehabilitation £5.148,000, gratuities £1,050,000, J-Force £2,800,000, and a settlement with the United' Kingdom for war stores and equipment £1,750,000. . A cash balance of approximately £BOO 000 had been carried forward to assist in meeting this year’s commitments. , , ... Mr. Nash said he was pleased on this occasion to announce a reduction in the public debt, which at April 1, 1947, stood at £634,751,761. _ . . , New borrowing in New Zealand , during the year totalled £25,948,710, giving a total of £660,700,471. From this sum there had been deducted £17,798,168 being redemption from moneys becoming available during the year for this purpose, and £ 11,287,988 being the balance of the public debt redemption fund applied to the redemption of C ' C Thc total of these sums was £29.086.156 reducing the public debt at March 31 * 1948, to £631,614,315. This reduction of £3,137,446 in the recorded total had been rendered possible by the utilisation of the capital moneys of the old public debt redemption fund as provided l'or by legislation passed las| .session. >

Taxation— £ £ Customs ., .. 24,391 (21,300) Beer 4,404 (4,370) > c "ies tax .. .. 15.946 (15,300) l'iim hire .. Ill (130) Highways .. .. 3,544 (3,300) Stamp duty .. 9,383 (9.000) Land tax .. 854 <950) Income tax 36,632 (35.500) Miscellaneous .. 62 (100) National security tax .. .. 772 (760) Totals .. ,, 96,099 (£90,710) £ £ Interest from trading activities .. . . 5,003 (5,500) Profits of trading undertakings .. 1,272 (2,160) Departmental receipts 13,842 (11,490) Total revenue .. 117,116 (109,860) EXPENDITURE Permanent appropriations— £ £ Debt services .. 26,612 (22,782) Other special Acts 2,709 (740) Total .. .. 29,321 (23,522) Annual Appropriations— Social Security & other social services .. ., 35,534 (35,973) Armed services.. 9,382 (10,172) Stabilisation .. 14,622 (14,105) Other votes .. 26,471 (26,080) Total annual appropriations .. 86,009 (86,330) Total expenditure 115,330 (109,852)