NATIONAL FINANCES

Hawke's Bay Tribune, Volume XXIV, Issue 10, 22 December 1933, Page 8

NATIONAL FINANCES

revenue is buoyant Less Than £2,000,000 Deficit ESTIMATE BY MINISTER By Telegraph—Press Association. WELLINGTON, Dec. 21. The announcement that if buoyancy of revenue was sustained—and there was every reason to believe that it would be the case—the Government should he able to improve upon the picture outlined in the Budget and complete the year with a deficit of less than £2,000,000 was made by the Minister of Finance (the Bt. Hon. J. G. Coates) during the second-read-ing debate on the Appropriation Bill in the House of Representatives to-day.

The Alinister said that revenue for the eight months ended November 30 amounted to £11,029,000, which was £1,371,000 greater than that received for the corresponding, period last year. The new items of taxation—the sales tax and gold export duty—had provided £1,183,009 of the comparative increase.

Continuing, he said': “Taxation receipts are generally in accord with the Budget estimates, although the position in regard to income tax will not bo known until later. Apart from land and income tax, receipts are £46,000 m excess of the proportionate part of the estimate for the year, with Xhe best period still to come. In regard to land tax, the time for payment is now past, and 1 may say that receipts already to hand are up to the Budget estimate for the year. “Interest receipts and also certain of the items grouped under other receipts’ in the estimates are not evenly spread over the year. Allowing for these accounting fluctuations, receipts are in accord with the Budget estimates and compare favourably with the corresponding receipts for tho first eight months of last year. “The jiosition in regard to expenditure is equally satisfactory. The amount for the eight months is £14,553,000, which is £1,614,(XX) less than the proportionate part of the estimate for the year. Comparison in regard to debt charges, however, is upset by the fact that the item for debt repayment, £1,366,000, has not yet been drawn upon, and that interest payments have this year been affected by conversion operations. On the other hand, the full year’s charge for exchange for normal purposes is already included.

“Departmental expenditure under votes is £353,000 less than, the proportionate part of the estimate, and though a few large special payments allowed for have yet to be made, the figures indicate that expenditure is being held within the carefully-pruned estimates.

“The additional amount provided for tho Consolidated Fund in the Supplementary Estimates is £55.000 more than was allowed in the Budget, the total being swelled by the additional amount required for defence and the unavoidable increase in hospital subsidies and the subsidy on fertilisers. “I am confident, however, that the excess amount voted will bo offset by savings in other items, so that the aggregate amount of expenditure provided for in the Budget—£24,4oo—will not bo exceeded. On the other hana, if the buoyancy in revenue is sustained —and there is every reason to believe that this will be the ease—we should bo able to improve upon the picture outlined in the Budget and come out with a deficit of less than £2,000,000.

The deficit provided for in the Bud get was £2,094,000.