RISE IN REVENUE

Manawatu Standard, Volume LIV, Issue 291, 6 November 1934, Page 2

RISE IN REVENUE

HALF YEAR’S ACCOUNTS. BUDGET OPTIMISM JUSTIFIED Per Press Association. WELLINGTON, Nov. 5. "When the Appropriation Bill was Introduced in the House of Representatives this evening, Rt. Hon. J. G. Coates, Minister of Finance, reviewed the Budgetary finances for the half-year ended September 30. These show that revenue for the period amounted to £9,900,125, an increase of £1,646,027 over that for the corresponding period last year. Expenditure for the six months amounted to £12,860,571.

The Minister said: “As the Bill is the final, stage of the Budgetary programme, members will no doubt be interested to know that progress has been recorded in terms of tho Consolidated Fund finances for the first six months of the current financial year. The Budget was based on the expectation of a substantial increase in revenue compared with that received for the last financial year. Results for the half-year ended September 30 last are in accord with these expectations.

“The accounts for the period, which will be gazetted shortly, will show that the revenue for the period amounted to £9,900,125, compared with £8,254,098, an increase of £l,646,027. Of this increase, £1,390,000 represents buoyancy in taxation receipts, the principal items concerned being: Customs £500,000, sales tax £160,000, highways £IOO.OOO, stamp and death duties £310,000. The remaining £256,000 of the increase came from interest and other receipts. “Practically every item contributing to the revenue is normally higher in the second half of the year, and last financial year only 35 per cent, of the total revenue for the year was received during the first half of the year. For the current period, receipts for the half-year represent 40 per cent. of‘ the Budget Estimates, thus indicating that so far the receipts are well up to Budget expectations.

THE EXPENDITURE.

Mr Coates said that on the other side of the picture the expenditure for the six months amounted to £12,860,571. In round figures the main classes of expenditure involved were as follow: Debt services £5,826,000 Exchange 1,417,000 Other permanent appropriations 947,000 Social services 3,114,000 Other votes 1,556,000 Total £12,860,000 “This total,” continued Mr Coates, “is approximately £1,000,000 ahead of the proportionate part of the Budget estimate, but I may explain that substantially the full amount allowed for debt repayment for the year has already been paid out, and this item accounts for £750,000 of the apparent excess expenditure. Similarly, the expenditure on exchange included covers requirements for the whole year. In fact, there are some credits still to come, so that the net expenditure for the year will be slightly' less than is shown for the half-year. This item accounts for a further £750,000 of the excess over the proportionate part of the Estimates. “This means that other items were proportionately underspent to the extent of £500,000, but 1 do not hope to maintain that position until the end of the financial year, as it is largely due to seasonal or accounting fluctuations. An analysis of the figures will show, however, that the expenditure generally is being held within the aggregate allowed in the Estimates.

“This statisfactory state of affairs, combined with the fact that the revenue is well up to expectations, supports the Budget forecast that the year will close with a small surplus. Many factors arc involved, and .not the ieast is the psychological reaction and interaction from the steps already taken and proposals made for economic rehabilitation generally. Trade and industry are, of course, the basis upon which the Budget rests, and as Finance Minister I am always on the look-out for indications of continued improvement. Up to the present the trend of affairs shows that the budgeting was not over-optimistic.”