Manawatu Evening Standard. WEDNESDAY, JUNE 14, 1933. THE NATIONAL ACCOUNTS.

Manawatu Standard, Volume LIII, Issue 167, 14 June 1933, Page 6

Manawatu Evening Standard. WEDNESDAY, JUNE 14, 1933. THE NATIONAL ACCOUNTS.

The national accounts havingbeen audited, the Minister for Finance is in the happy position of being able to announce a surplus of approximately £40,000. At the end of April Mr Coates made the welcome statement that the financial year had closed with a “surplus of a few thousands,” and the completion of the auditing work gives a still more substantial figure. The year has been productive of a result that is all the more pleasing in view of the very serious position that confronted the Government a year ago. Then it became imperative to make adjustments to reduce the anticipated deficit to what was deemed a reasonable amount. The action taken is well-known. Substantial- help was given too by the British Government when it generously ag-reed to allow the payment of moneys due under the funded war debt loans to remain in abeyafice. Even so in October last, when the Budget was presented, it was anticipated that both sides of the ledger would fail to balance by at least one million pounds. More buoyant revenue from taxation purposes than the Budget forecast gave an indication at the beginning of the year that the deficit, would be substantially reduced, and the continuance of this buoyancy has brought a surplus of £40,000 in round figures. Customs taxation, beer duty, motor taxation, stamps and death duties, and income tax have all exceeded the estimates. Though income tax receipts are ahead of the Treasury anticipation by £156,000, they fall short of the previous year’s collection by very nearly £900,000. Customs duty on the other hand exceeds the 1931-32 yield by £227,000 and the estimate by £431,000. Neither land tax nor film hire tax came up to expectations. The latter, however, is a minor account. In the precedingfinancial year land tax yielded £542,000 and the estimate framed by the Treasury for 1932-33 was £515,000, the sum received being £498,916. Two new items, the sales tax and the gold export duty, came into force just on the' close’ of the financial year, the respective receipts being £38,253 and £15,635. Generally, the Treasury estimates have been substantially verified, and this must be judged an excellent result in view of all the circumstances. The ability of the Hailway Department to return a greater sum than the estimate towards the cost of its interest bill and economies have also been assisting factors towards the small surplus, which would have been at least half a million pounds but fcfr the increased exchange rate which cost the Government —the taxpayers. in reality—£47o,ooo. Attention may now be directed to the present financial year. The people are still being- very heavily • taxed. The amount for 1933-34 was sharply increased in February, but it has been presumed that the Government will find no occasion to make the burden a 'Still greater one. In addition there fs the Unemployment Board’s levies which amount to approximately £4,000,000.- The taxation receipts last financial year were £15,600,000, so that the total were little short of £20,000,000. If the forecasts from the February legislation are realised the amount in the present period will exceed this by at least £2,000,000, assuming receipts from the various sources in the past year show no diminution. This is a tremendous strain upon

a young- country and cannot be continued indefinitely. With the lifting of the clouds there must come relief, so that industry can be revitalised instead of being drained by the Government. Only in this way will the country be able to derive the maximum benefit from the impetus of better times. In Australia there is a definite promise of further relief from taxation, but that does not yet appear possible in this Dominion. Nevertheless, it must be the Government’s first consideration when times are propitious.