DOMINION FINANCE

Grey River Argus, 15 June 1933, Page 8

DOMINION FINANCE

Further Particulars WELLINGTON, June 12. A supplement to the “Gazette” published to-day, contained the audited accounts for the past financial year. Commenting upon the figures therein, the Minister of Finance (Mr. Coates) staled that as indicated in his preliminary Press-statement, issued shortly after the close of the financial year, the year closed with a balanced budget and a small surplus. This has now been defined as approximately £40,000 and in view of the serious position which had to 1 bo faced, when the year opened, will, it is felt, afford general satisfaction. The Budget provided for reducing a huge prospective deficit to not more than. £1,010,000, but as the year progressed, it became evident the result for the year would be much nearer balance than this. The final results disclose a surplus of some £40,000, which had been made possible partly by reason of revenue buoyancy, totalling £938,000, and partly by way of net economies totalling £112,000. It will bo seen that the revenue for the past year, compared with the budget estimates, discloses an excess of receipts over budget estimates as follows: — Budget estimate 1932-33 £14,800,000; Receipts 1932-33 £15,G05,206; Excess of receipts over budget estimate taxation £805,206. Interest .—£2,550,000; £2,641,710; £91,710. Other receipts £4,280,000; £4,321,GO5; £41,605. T0ta15.—£21,630,000; £22.568,521; £938,521.

The .major excess of receipts over the budget estimate had been contributed by taxation to tho extent of £805,200, of which tho principal increases arose out of Customs duties £431,400, income tax £156,800, stamp and death duties £99,200 and motor vehicles taxation £70,600. For the increase of £91,700 under “interest,” the improved position of the net railway revenue for the past year had been responsible, a surplus of £lOO,500 having been received from this source against which there had been minor declines in other sources of revenue. Under this heading, under “other receipts,” a surplus of some £41,600 arises for the most part by reason of registration and other simi-l lar fees having been maintained in excess of what might reasonably ha«ve been expected under current economic conditions. Expenditure for the year is illustrat-.<« ed as follows:— Appropriation 1932-33— Permanent appropriations del»l services £10,020,237; Expenditure 193233. £9,890,015, £130,222. Other services £1.932.G0G. £2,303,193; £370,497. Annual appropriations, Legislative and Prime Minister’s Department and finance £397,332; £374,590; £22,742. General administration £1,014,226; £960,609; £53,617. Law and order £698.140; £683,225; £14,915. Defence—£63l,llo; £569,921; £6l,Maintena.nee of buildings, etc., £74,192; £52,371 ; £21.821. Development of primary and secondary industries £963,501; £851,517; I £111,984. I Social services. etc., £6,909,518; £6,842,938; £66,5,80. Totals: £22,640,952; £22,528,379; £112,573. It will be evident that substantial economies have been effected under ! all the main headings of expenditure, with tho exception of “other services” uudt'r permanent appropriations, where , an excess of £370,500 arises by rea- j son of additional exchange on London, purchased under the Banks Indem-. nity (exchange) Act, during the final quarter of tho financial year. Under) other items, major savings arise, under the debt services principally by reason of the interest economies, arising out of the fact that it wa.s found possible to finance the year’s operations with considerably less recourse to Treasury Bill finance, than was anticipated. Under other items it will be seen that by reason of the operation of progressive economics, and continuous review of all departmental expenditure, substantial savings have been effected in every possible direction. Treasury bills issued under the Public Revenues Act for general purposes totalled for the year £22,974,000, a,s against which £24,419,400 were redeemed, the redemptions showing an excess of £1,445,000 over issue, the excess being due to the fact that bills totalling some £3,000,000 were outstanding at the close of the previous financial More than usual interest will also centre upon transactions arising out of the issue of Treasury bills under the Banks Indemnity (Exchange) Act of 1932, in respect of which £2,858,000 was issued during the year against which redemptions totalled £478,000 lea.ving £2,380,000 outstanding at the close of the year. Of this, £1,910,000 had been utilised to purchase exchange from banks under provisions of the Banks Indemnity (Exchange) Act. The difference of £470,000 between bills outstanding ami the amount purchased represents the exchange cost, which has been debited against revenue under “permanent appropriations’’ other expenditure. Of the sum of £1,910,000 as above paid to banks for the purchase of exchange, I the major portion was retained in the New Zealand Government Indemnity Exchange Account in London, but as indicated i.n the account £380,000 was transferred to lhe Public Account before March 31, and formed part of the floating cash and investment balances of the Consolidated Fund.