SHARP FALL IN REVENUE FROM CUSTOMS DUTY AND SALES TAX

Gisborne Herald, Volume LXXV, Issue 22826, 22 December 1948, Page 6

SHARP FALL IN REVENUE FROM CUSTOMS DUTY AND SALES TAX

PUBLIC ACCOUNTS

(P.A.) WELLINGTON, Dec. 22. A review of the financial position disclosed by the public accounts for the half-year ended September 30 has been issued by

the Minister of Finance, Mr. W. Nash

The figures for revenue and expenditure shown in the following tables are compared with half the Budget estimate for the full year. Exchange Parity Adjustment “I would mention.” said the Minister, “that adjustments consequent upon the alteration of the exchange rate have been made in the Supplementary Estimates, but the original Budget estimates form a sound basis for" comparative purposes."

“Both revenue and expenditure are less than the proportionate comparison of Budget figures,” said Mr. Nash, “This is normal as a considerable portion of the revenue, notably income tax. is not collected until towards the end of the year, while there is invariably a time lag in expenditure being brought to charge. Tariff Concessions “Both Customs and sales tax revenue show a decline. I indicated in the Budget that we could anticipate a reduction in Customs revenue this year due to concessions under the general agreement on tariffs and trade, and to the diversion of imports from foreign countries, and this trend for which allowance was made and which is reflected in these figures may possibly be accentuated. “The fall in sales tax is due to the alteration of the exchange and an allowance for a reduction of £1,250,000 for the full year was made in the adjusted figures shown in the Supplementary Estimates. “The revenue from income tax includes, as I mentioned in my review of the first quarter’s accounts, collections in respect of late payments from the last financial year. The bulk of this tax falls due, of course, in the last quarter of the year. “The expenditure out of the Consolidated fund under the heading of ‘Permanent Appropriations’ is less than the proportionate amount of the Budget estimate by £1,945,000 due to the fact that the greater part of the annual contribution towards debt redemption will not be utilised until tho December quarter for the repayment of a loan maturing on November 30.

Usual for This Time of Year

“Expenditure under the Annual Appropriations amounts to £34,779,000, which is approximately 79 per cent, of the half-year’s estimate of £43,874,000. For the six months ended September 30, 1947, the comparative proportion was 81 per cent-, which indicates thai the position is a usual one for this time of the year.”

SOCIAL SECURITY FUND RECEIPTS

Sound Finanical Position “Both the receipts from the social security charge and the expenditure on benefits reflects a similar position to that which exists in the consolidated fund. The cash balance at the end of September, 1948, including uncleaned imprest advances of £2,772,149, amounted to £9,89fi,G57 so that the fund is in a sound financial position. “Transactions in the war expenses account are now relatively small and relate mainly to the rehabilitation of J Force, costs and clearing up of miscellaneous claims and adjustments. “The financial position as shown by the half-year's accounts is generally in line with the Budget Estimates,” said the Minister, “and is satisfactory.”

CONSOLIDATED FUND RECEIPTS Estimate I iixation — X £ Customs 11, nun,non 9,228,000 Peer duty ii.i ss. ooo 2,000,000 Sales tax 7,S7."».firt0 6.51$.000 Film hire 65,000 40.O0C Highways 1, 362, non 1.3SS.OO0 Stamp duty 4.600.0<«) 4.500,00c Land tax •1.” 0,0 00 102,000 Income tax 20, inn,(K10 16,347.000 Miscellaneous 33.000 37,000 43.173,000 40,109,000 Interest 2,302,000 2,271,000 Profits from trading undertakings LOSS.000 865,000 Departmental receipts . 5,(111,000 4,019,000 Total revenue 57,434,000 47,321,000 EXPENDITURE Perm, appropriations . 12,913,000 10,968,000 Annual appropriations— Social Security .. 7,500,000 7,500,000 Other social services . 10,395,000 10,564,000 Armed services 5,533.000 2.471,000 Stabilisation 5,807,000 3,945,000 Other votes .. .. 13,839,000 10,299,000 43,874,000 31,779,000 Total expenditure .. 56.7S7.000 45,717,000

Estimate Actual £ 13,513.00 Q Security charge .. .. 15,000,000 Miscellaneous receipts . 33,000 Transfer from Consolid27,000 ated Fund .. 7,500,000 7,500.000 Total 22,533,000 21,040,000 EXPENDITURE Monetary benefits .. 10.130,000 Family benefits .. .. 0,021,000 Medical benefits .. .. 3,781,000 Administration expenses 8,374,000 5,857,000 3,718,000 and emergency benefits 515,000 436,000 Total 21,333,000 1S.3S5.000