Mr Nash is Pleased With State of Finances; Estimates Realised

Northern Advocate, 21 October 1938, Page 8

Mr Nash is Pleased With State of Finances; Estimates Realised

[Per Press Association. Copyright .] WELLINGTON. This Day. S ATISFACTION AT THE POSIT! ON DISCLOSED IN THE HALFk YEARLY STATEMENT OF TOE PUBLIC ACCOUNTS FOR THE PERIOD ENDED SEPTEMBER 30, AND CONFIDENCE THAT THE YEAR WOULD CLOSE WITH THE FINANCES IN A HEALTHY STATE, WERE EXPRESSED BY THE MINISTER OF FINANCE, THE HON. W. NASH, YESTERDAY, IN RELEASIN' G FOR PUBLICATION A SUMMARY OF THE ACCOUNTS.

Mr Nash drew attention also to the fact, that the Budget estimates were being closely adhered to, and indicated that the detailed accounts would, as usual, be published in the Gazette immediately after audit.

Summary of Position. i A summary of the position Is as fellows, the revenue from April 1 to September 30, 1938, being compared with the corresponding figures for last - year: Half-year. Varia--1938-39. 1937-38. tion. £. £. £. Customs 5.100,000 5,460,000 -360.000 Beer duly 477,000 431,000 -46.000 Sales Tax 1.717,000 1,769,000 -53.000 Highways 1.615,000 1,504,000 11 11,000 Stamp and Death Duties 1,515,000 1,605.000 -90,000 Other taxes 1,462.000 982,000 t 480,000 Ttl. taxtn. 11,886,000 11,751,000 1135,000 Interest 589,000 777,000 -188,000 Other receipts 925,000 1,036,000 -111,000 Grand ttl. 13,400,000 13,564,000 -164,000 Budget Estimate Justified. “These results show,” said Mr Nash,' “that to September 30 last, the total consolidated ordinary revenue amounted to £13.400,000, compared with £13,564,000 for the same period last financial year. It will be recalled that the Budget estimate allowed for a total reduction in revenue for the year of £214,000. The most accurate estimate of the present position is obtainable by comparing the percentage results, which’’ show that receipts to date, compared with last ydar, amount to 37 per cent, of the estimate for the full year in each case from which it is obvious that the Budget estimates are being very closely adhered to. Individual items constituting total taxation are, on the whole, so nearly identical as to call for little explanation. It is expected that the reduction in highways revenue will be made up during the year. The item, “other taxation,” constitutes principally land and income tax, by far the greater portion of which is not due until later in the financial year. “To date the income receipts total compared with £799,000 for the same period last year, but, allowing for adjustment in respect of payments in advance, arrears, etc., there appears to be no reason to depart from the Budget estimate for the vear of £9,500,000. Following are the main headings of expenditure on September 30, 1938, compared with the same period of last financial year; Permanent Appropriations, 1938-39. 1937-38. Variatn. £. £. £. Debt service 3,545,000 3,815.000 -370,000 Highways 1,511,000 1,373,000 1138,000 Exchange 774,000 837,000 -63,000 Other services 90,000 257,000 -167,000

Total Permanent 5,920.000 6.282,000 -362,000 Annual Appropriations. Social services 6,304,000 5,598,000 1706,000 Other services 3,878,000 3,128,000 1550,000 Ttl. annual 9,982,000 8,726,000 11,256,000 Grand totals 15,902,000 15.008,000 1894.000 Expenditure Variations. “The expenditure to date is thus £894,000 in excess of that incurred during the same period last financial year,” said Mr Nash. “It will be noted that under the heading “permanent appropriations,” the m'ajor variation is in respect of debt services, where a comparative reduction of £270,000 is indicated. The Budget estimate allowed for an increase of £103,000 for the whole year. This variation is due principally to’ the fact that recoupments from ether accounts during the past half-year were substantially in excess both of the relative proportion of the estimates and of the previous half-yearly result. “The balance of the variation arises from the fact that repayment of public debt moneys are utilised for redemption purposes only as and when required. During the first six months of the current financial year, it has net been found necessary to utilise any portion of such funds, which will accordingly be expended during the second half of the year. Thus, while there is an apparent saving to date in respect of ‘ debt charges.’ it is considered that by the end of the financial year the Budget estimate will be reachd.

“Under the heading of 1 annual appropriations.’ expenditure on social services is 'adhering very closely to the Budget estimate, while, in respect of other votes, which include general administration, the maintenance of law and order, etc,, the increase is due very largely to accounting fluctuations, which will tend to be absorbed as the year progresses. ‘■Reviewing the position ns a whole," Mr Nash concluded, '‘after making the necessary allowances for various factors which affect direct comparisons, it is evident that both revenue and expenditure are adher-

ing very closely to the Budget estimates, and, based on the results to date, I feel quite confident that the year will close with the finances maintained in a healthy state."