STATE FINANCES

Nelson Evening Mail, Volume LXXIII, 26 October 1940, Page 2

STATE FINANCES

REVENUE AND EXPENDITURE I YIELD FROM TAXATION j | FIGURES FOR SIX MONTHS j j Details of the ordinary revenue j account of the Consolidated Fund for the first six months of the current finj ancial year were announced last even- | ing by the Minister of Finance, the | Hon. W. Nash. Revenue for the per- | iod totalled £14.589,000 compared with j £14.803.000 for the first six months of j last financial year, and total expendij turc amounted to £15,207.000, as compared with £ 16,090.000 for last year. After making an analysis of the figures, the Minister said they revealed a healthy position in the State’s finances. He also gave particulars of the Social Security Fund and the War Expenses Account. A comparative statement of the revenue is as follows: ' ■

“On the basis of actual revenue it will be quoted,” explained Mr Nash, “that there has been a reduction in Customs, highways and stamp and death duties, offset to a large extent by an increase in ‘other taxation.’ In compiling this year’s Budget, substantial reductions were allowed for under all headings in which a falling off is now shown, while last financial year the heading ‘Stamp duties’ included gift and death duties which this year are credited direct to War Expenses Account. “The heading ‘Other taxation’ is mainly land and income-tax in respect of which this year’s Budget estimate provided for a total increase of £3,260,000. The revenue position is more correctly appreciated by a comparison of the percentage statements, and it will be noted that on this basis the same proportion &f the total revenue has been received during the first six months of this year as was received for the same period last year.” EXPENDITURE As regards the expenditure, said the Minister, the total to 30th September, 1940, was £ 15,207,000, as compared with £16.090,000 for the first six months of last financial year. Comparative details are as follows: Percentage

“The first item of expenditure calling for special mention is ‘debt ser- ; vices,’ where a percentage increase of ' 2 is shown,” said Mr Nash. “This is ;an accounting fluctuation and arises principally from the fact that last financial year practically the whole of ' the amount provided for public debt repayment was utilised at the close of the year, whereas this year a substantial proportion of the allocation has already been applied. The percentage reduction in highways expenditure is offset largely by a reduction in the corresponding revenue item. “In total, 42 per cent, of the estimated expenditure for the whole of the present year has been expended during the first six months, as against 43 per cent, for the same period of last year. “These results,” Mr Nash added, “reveal a healthy position in the State’s finances, and though with such an important item of revenue as income tax not payable till the end of the financial year, it is somewhat premature to forecast the year’s results, it is clear that both revenue and expenditure are adhering closely to the estimates, and personally I have every confidence that this satisfactory position will be maintained. OOPT4T CU’r’TTTJTT’V TTTTATr*

SOCIAL SECURITY FUND “Though the Social Security Fund • is a separate account, outside the Consolidated Fund, the Social Security Fund is financed to a considerable extent by transfers from the Ordinary Revenue Account of the Consolidated , Fund, and to that extent the Budget surplus or deficit for the year is affected. For the six months ended 30th September last, the revenue received into the Social Security Fund totalled £5.627,000 compared with £4,978.000 during the same period of last 1 year. In addition to this revenue. £400.000 has been transferred from the Consolidated Fund to date, as compared with £750,000 last year. The Budget estimate for such transfers for the whole of the current year was £3,200,000. as compared with £1,000,000 ; actually transferred last year. “On the expenditure side, during the past six months and regarding moneys ■ advanced by way of interest as expenditure. a total of £6,101.000 had come to charge as against £4,949.000 during the first six months of last financial year. Generally speaking, it may be said that the expenditure is following the Budget estimate, while the revenue is somewhat more buoyant than was originally anticipated. WAR EXPENSES ACCOUNT “The War Expenses Account, while within the Public Account, is entirely self-contained and is financed oy the i proceeds of special taxation and separate loans. No comparison with results of the corresponding period last year is possible in this case as the War Expenses Account did not come into existence till the end of September, 1939. Again, regarding moneys advanced to imprestees as having been expended, the total expenditure for the past six months amounted to £8,836,000. The revenue during the period totalled £4,125.000. and borrowings

(including interest-free stock of £1 - 089.000) totalled £4.127.000. “The total expenditure for the year, as provided for in the Budget, was £37A millions, of which it was estimated £192 millions would be expended abroad and the balance in New Zealand. To date overseas charges amounting to only £1.239,000 have been entered, largely due to delay in receiving claims.” The Minister said that full detailed accounts would be gazetted as soon as the usual audit had been completed.

Taxation: Customs Beer dut3 Sales tax Highways Stamp duties Other Percentage six months April 1 to to total September 30 for year 1939 1940 1939- 1940- £ £ 40 41 5.459.000 4,571.000 55 61 540.000 711.000 39 52 1.800.000 1.647.000 51 55 1.752.000 1.360.000 58 52 1.486.000 782.000 43 47 1.820.000 3,205,000 16 22 Interest 960.000 1,197,000 33 Other receipts 986,000 1.116.000 44 33 14,803.000 14,589.000 39 39

six months April 1 to to total September 30 for year Permanent 1939 1940 1939- 1940appropriations £ £ 40 41 Debt services 3,500,000 4,513,000 34 42 Highways 1,753,000 1.294,000 58 50 Exchange 792,000 766,000 46 51 Other services 835,000 100,000 31 26 6,930,000 6,673,000 39 44 Annua] appropriations Social services 4.208.000 4.474.000 45 38 Other votes 4.952.000 4.060.000 48 41 9.160.000 8,534.000 46 39 16,090.000 15,207,000 43 42