N.Z. Expenses On War For 6 Months Well Below Estimate

Northern Advocate, 14 November 1941, Page 6

N.Z. Expenses On War For 6 Months Well Below Estimate

[Special to “Northern Advocate”] WELLINGTON. This Day. THE WAR EXPENSES ACCOUNT FOR THE FIRST SIX MONTHS OF THE FINANCIAL YEAR CONTAINS AMPLE PROOF THAT NEW ZEALAND IS THOROUGHLY FACING UP TO THE TASK OF MEETING AS MUCH AS POSSIBLE OF THIS BIG RESPONSIBILITY OUT OF CURRENT INCOME. It is also evident, mi less the overseas charges not yet brought to account are extremely big. that the estimated cost of the services for the year will he less than the estimate of just under £70.000.000. The war expenditure which came to charge in the preceding year was less than half the estimated amount, but the Minister for Finance explained that the difference was due to the considerable delay in receipt of claims from overseas. Every possible debit is promptly brought into the account and when they closed on September 00 the half year’s expenditure on the three services was as follows, with the figures for the corresponding period of 1040 in parentheses: Xaw C 1,260,445 (£502,937) Arm v ' ■' £9.504.851 (£0,927,881) Air Force £0.250.598 (£2.171.060)

S» Exceeds £14,000,000 A fourth subdivision of this account is headed Civil and includes purchases of stores. Therefore it is likely to show high variations and its total for the six months of £980,106 is not comparable with the first six months of the previous year. The expenditure of the three services for the recent six months is shown as slightly in excess of £ 14,000,000. but the Minister for Finance, during his recent visit to Australia, disclosed that the losses of equipment in Greece and Crete involved £20,000,000. This is one of the deferred charges met in the first instance by the United Kingdom, which advances the money to New Zealand on a memorandum of security. The accounts undernoted show advances of this character totalling £2.425,500. Taxation Above Estimates In every respect the special war taxation for this period produced results above the estimates, the total being £9,947,499. How the results compare with the Budget estimate is shown as follows: National Security tax estimated to produce £10.000,000 in the full year lias realised in six months £5,387,000. Customs, beer duty, sales tax and gold export duty estimated to produce £3.500,000 has realised in six months £2,089,734. National Savings were put down in the Budget at £3,000,000, but mere than half the total was raised in the half year, actual results being £1,727,875. Even the estate, succession and gift duties, so difficult to estimate in« advance, have produced slightly move than expected, the actual total being £1.824,438, compared with the 12 months’ estimate of £3,046,000. Income tax receipts will come into the second half of the year, but there is already nearly £400,000 in hand.